**Crypto Rug Pulls: What You Need to Know**

In the wild world of cryptocurrency, "rug pulls" are scams where developers abandon a project, leaving investors with worthless tokens. Imagine joining a game, only for the organizer to vanish with your money just as you're about to win. That's a rug pull.

**How to Spot a Rug Pull:**

- **Unknown Developers:** Check the team’s reputation.

- **No Liquidity Lock:** Ensure tokens are held in a smart contract.

- **Sell Order Limits:** Test if you can sell immediately.

- **Price Fluctuations:** Be wary of sudden surges.

- **High Yields:** Too-good-to-be-true returns are red flags.

- **No External Audit:** Verify third-party audits.

**Notorious Examples:**

- **OneCoin:** A Ponzi scheme that vanished with billions.

- **Squid Game:** Developers disappeared after cashing out.

- **AnubisDAO:** Raised $60M, then vanished.

**Legal Status:**

Rug pulls are illegal and considered fraud. Regulatory bodies are cracking down, but the anonymous nature of crypto makes enforcement tricky. The EU's MiCA Regulation is a step towards better oversight. Stay vigilant and informed to avoid falling victim.