Exit Scam

An “Exit Scam” refers to a fraudulent scheme where the operators of a business, typically in the Cryptocurrency or online investment SPACe, suddenly close the business and disappear with investors’ funds. This often happens after attracting a substantial amount of Capital from investors who believe in the legitimacy of the operation.

Examples of Exit Scams include:

• BitConnect: A Cryptocurrency investment platform that promised high Returns but shut down in 2018, leaving many investors with significant losses.
• OneCoin: Marketed as a Cryptocurrency, it turned out to be a Ponzi scheme. The founders disappeared with billions of dollars from investors.

Cases of Exit Scams often involve:

• Promotional activities that generate hype around the investment opportunity.
• Lack of transparency regarding the Business Model or financial practices.
• Sudden shutdown of the platform or website, making it impossible for investors to withdraw their funds.