A rug pull, or exit scam, can occur when developers create and establish a liquidity pool and then remove the funds and disappear after investors have bought the related token. The total value of funds locked on Defrost Finance, which peaked at $95 million in February, was about $13 million in recent weeks, Defi Llama data show. That dropped to less than $93,000 on Dec. 25.
Source: https://www.coindesk.com/business/2022/12/25/defrost-finance-hacked-in-attack-some-say-may-have-been-a-rug-pull/?utm_medium=referral&utm_source=rss&utm_campaign=headlines