References & Sources
Evidence used to explain the general principle. These references do not replace personal scholar review.
4 Sources & 0 Scholarly Opinions
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Running a rug pull is theft and needs no separate analysis. The harder question is what to do when you sold early and profited while later buyers lost everything. Most scholars distinguish by knowledge and intent. If you knew the project was fraudulent and sold anyway, you participated in a scheme that took other people's wealth unjustly, and the profit is not yours to keep. If you invested in good faith, sold for ordinary reasons, and the collapse came afterwards, you made a normal trade at a market price - the later fraud was not your act and most scholars do not require you to disgorge a legitimate gain. The middle case is where most people actually sit: you suspected something was wrong and sold before telling anyone. There the profit is defensible but the silence is not, and several scholars would advise disposing of the gain given that it came from buyers you could have warned.
Current direction: Needs Scholar Review. This page needs a qualified scholar to verify the exact ruling before a reader relies on it.
Educational guidance only, not a fatwa. Consult a qualified scholar for your specific case. Page created August 27, 2026.
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It depends on what you knew. If you invested in good faith and sold for ordinary reasons before any collapse, most scholars treat it as a normal transaction at a market price - the later fraud was not your act. If you understood the project was a scam and sold into it anyway, you participated in taking the buyer's wealth, and the profit is not yours to keep.
The sale is defensible - you are not obliged to keep holding something you distrust. The silence is harder. If you genuinely believed others were about to be defrauded and said nothing while exiting, that sits badly against the obligation to advise sincerely. Several scholars would advise giving the gain away, not because the sale was invalid but because it came from buyers you could have warned.
No. You did nothing wrong and there is no obligation attached to a loss. Where the perpetrators can be identified and recovery is possible through legitimate legal means, pursuing it is your right. If you had also encouraged others into the project in good faith, telling them what happened is worth doing even though the loss was not your fault.
Evidence used to explain the general principle. These references do not replace personal scholar review.
4 Sources & 0 Scholarly Opinions
Compare the general position and the details scholars usually check.
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