Exit Scam
A project that collects user funds, operates long enough to build trust, then vanishes with the money.
An exit scam is the planned disappearance of operators holding customer money. The team runs an apparently legitimate exchange or yield platform, lets deposits pile up, then shuts the site and empties the wallets.
QuadrigaCX and Thodex are textbook cases, each costing users hundreds of millions. The warning signs are familiar: withdrawals that start "pending," founders who stay anonymous, returns that never made sense. Self-custody removes the custodian; if you hold your own keys, there is nothing for them to run off with.
Related terms
A scam where a project's creators drain its funds or dump their tokens, leaving investors with worthless holdings.
Exit LiquidityBuyers who purchase at high prices, letting earlier insiders sell out at a profit.
Self-CustodyHolding your own private keys directly, so no exchange or company stands between you and your crypto.
HoneypotA token or contract rigged so buyers can purchase but never sell, trapping their funds by design.