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Crypto Rug Pulls Cause $6 Billion Loss in 2025, 6,499% Increase from 2024

Coin WorldMonday, Apr 21, 2025 1:02 pm ET

1min read

Crypto rug pulls have caused a staggering increase in financial losses in 2025, despite a decrease in the frequency of such incidents. According to market intelligence firm DappRadar, the web3 ecosystem has suffered nearly $6 billion in losses due to rug pulls this year, marking a 6,499% increase from the $90 million lost during the same period in 2024. This significant rise in financial damage is largely attributed to the incident involving the real-world asset (RWA) crypto project Mantra (OM), which accounted for 92% of the total losses.

Earlier this month, the OM token experienced a dramatic plunge, falling from a high of $6.35 to a low of $0.37. This collapse was triggered by at least 17 wallets transferring 43.6 million OM tokens, valued at $227 million at the time, to crypto exchanges. Mantra Network, which had positioned itself as a legitimate DeFi platform, ultimately collapsed in a spectacular fashion, highlighting the deceptive nature of rug pulls.

Despite the increased financial impact, the frequency of rug pulls has actually decreased. DappRadar reported 21 incidents in early 2024, but only 7 have been recorded so far this year, representing a 66% decrease in frequency year-over-year. This shift indicates that while rug pulls are becoming less common, they are increasingly sophisticated and more devastating when they do occur. The scams are often orchestrated by teams with polished branding and well-planned narratives, making them harder to detect and more harmful when they are executed.

In early 2024, most rug pulls originated from decentralized finance (DeFi) protocols, non-fungible token (NFT) projects, and memecoins. However, this year, the majority of incidents have occurred within the memecoin sector. This shift in the origin of rug pulls suggests that scammers are adapting their tactics to exploit new and emerging trends in the crypto space, making it crucial for investors to remain vigilant and conduct thorough due diligence before investing in any crypto project.

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