Luke S178 Adams

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Why do some wallets exit scam?

Some wallet providers, especially new or unregulated ones, are created with the intention of stealing user funds. These scams may operate normally at first to gain trust, then suddenly block withdrawals or disappear with deposits. Exit scams are common with custodial wallets and DeFi projects that lack transparency. Warning signs include unrealistic returns, anonymous teams, and lack of regulation. To avoid exit scams, traders should only use well-known, audited wallets and avoid storing large amounts on custodial platforms. Checking a wallet’s history, security audits, and community reputation reduces the risk of falling victim.