A new report from blockchain analytics firm DappRadar reveals a troubling surge in cryptocurrency rug pulls: a type of exit scam where developers abandon projects and disappear with investors’ funds. Nearly $6 billion has been stolen from the crypto ecosystem since the beginning of 2025, marking a staggering increase from the $90 million lost during the same period in 2024. This dramatic escalation highlights the growing scale and severity of these malicious schemes.
According to Sara Gherghelas, a blockchain analyst at DappRadar, a single ongoing incident accounts for an overwhelming 92% of the total losses: Mantra Network, a decentralized finance (DeFi) project built on the Polygon blockchain. While investigations are still underway, the suspected rug pull could rank among the most financially damaging scams in cryptocurrency history.
Interestingly, DappRadar’s data shows a 66% decrease in the number of rug pulls, with only seven incidents recorded in early 2025, compared to 21 during the same period in 2024. However, Gherghelas warns that this decline may be misleading: “Scammers are no longer chasing quick wins; they’re building elaborate traps capable of collapsing entire ecosystems overnight.”
This indicates that while fewer rug pulls are happening, they are becoming significantly more sophisticated and devastating.
The Mantra Network case illustrates this evolving threat. Despite promoting DeFi innovation, cross-chain functionality, and even securing listings on platforms like DappRadar, on-chain data revealed early warning signs. The project’s peak number of Unique Active Wallets (UAW) was just 64 in December 2024 — an unusually low figure for a project that allegedly raised billions.
Gherghelas also points to a shift in where these scams are occurring. In Q1 2024, most rug pulls targeted DeFi protocols, NFT projects, and meme coins. But in 2025, the majority have been concentrated in the meme coin sector. One recent high-profile example is Libra (LIBRA), a Solana-based token launched by Libertad. A now-deleted social media post by Argentina’s President, Javier Milei, caused a massive pump followed by a 94% crash, sparking accusations of market manipulation.
DappRadar emphasizes the importance of on-chain data in identifying potential rug pulls. Key warning signs include:
- Sudden, unexplained spikes in Unique Active Wallets
- High trading volume despite low user engagement
As the crypto community continues to assess the fallout from the Mantra Network case, the incident underscores the urgent need for investor due diligence when engaging with decentralized applications (dApps) and tokens.
While the decentralized nature of blockchain offers many advantages, it also presents challenges in oversight, enabling malicious actors to exploit hype and investor trust. Rug pulls—whether “soft” (insiders gradually dumping tokens) or “hard” (developers abruptly withdrawing liquidity)—often rely on deceptive marketing to entice investors before vanishing with the funds.
Platforms like DappRadar, which monitor real-time on-chain activity, are vital tools in detecting and avoiding such scams. By analyzing metrics like unique active wallets, transaction volumes, and token movements, investors can better evaluate a project’s legitimacy and protect themselves from increasingly sophisticated threats.
