What happened?
In 2025, crypto rugpulls have resulted in nearly $6 billion in losses, marking a 6,499% increase from the previous year’s $90 million. The majority of these losses, 92%, are attributed to a single incident involving the alleged Mantra Network scam on the Polygon blockchain. Although the number of rugpull incidents has decreased, their financial impact has grown significantly due to more sophisticated scams.
Who does this affect?
This surge in rugpull losses primarily affects investors and users involved in cryptocurrency and decentralized finance (DeFi) projects. Retail investors who may not have the tools or experience to identify fraudulent schemes are particularly vulnerable. The broader crypto community also suffers from such scams as they undermine trust and deter new participants from entering the market.
Why does this matter?
The substantial increase in rugpull losses highlights an evolving risk landscape within the cryptocurrency market, where scams have become fewer yet more damaging. This shift indicates that fraudsters are deploying more complex schemes, potentially jeopardizing market stability and investor confidence. Consequently, while the market continues to grow, these threats underscore the need for enhanced vigilance and regulatory measures to protect investors.