Rug Pull, Token Fraud and Memecoin Scheme Attorneys
Claims against the people behind token frauds: the securities anti-fraud provisions, the CFTC fraud rule, Florida Chapter 517 and civil theft remedies, and asset tracing on-chain.
In a rug pull, the people who launched a token remove liquidity or sell into the market after promoting it, leaving buyers with an asset that has no market. Other schemes misstate who controls a token, what the treasury holds, or what the project will build. Whether the token is a security or a commodity, federal law prohibits fraud in connection with its sale, and Florida law provides rescission, damages, and treble-damage civil remedies against the people involved.
Industria Business Lawyers represents buyers who lost money in token frauds nationwide, and traces the assets involved. Every provision cited on this page was read from the United States Code, the Code of Federal Regulations, or the 2026 Florida Statutes. A consultation is free.
The Provisions These Claims Rest On
Fraud provisions under both federal regimes, and Florida’s civil remedies.
Securities Fraud
Rule 10b-5, 17 CFR 240.10b-5, makes it unlawful, in connection with the purchase or sale of any security, to employ any device, scheme, or artifice to defraud, to make any untrue statement of a material fact or omit a material fact necessary to make the statements not misleading, or to engage in any act, practice, or course of business which operates as a fraud or deceit upon any person. Section 17(a) of the Securities Act, 15 U.S.C. 77q(a), prohibits the same conduct in the offer or sale of securities.
Commodities Fraud
Where the token is a commodity rather than a security, CFTC Rule 180.1(a), 17 CFR 180.1(a), makes it unlawful, in connection with any contract of sale of any commodity in interstate commerce, to intentionally or recklessly use any manipulative device, scheme, or artifice to defraud, make any untrue or misleading statement of a material fact, or engage in any practice that operates as a fraud or deceit.
Florida Chapter 517
Section 517.301(1)(a), Florida Statutes, makes it unlawful, in connection with the offer, sale, or purchase of any investment or security, to employ any device, scheme, or artifice to defraud, to obtain money or property by an untrue statement or omission of material fact, or to engage in any practice which operates as a fraud or deceit. Section 517.211(2) makes the seller and every director, officer, partner, or agent who personally participated or aided in the sale jointly and severally liable for rescission or damages.
Florida Civil Remedies for Criminal Practices
Section 772.104(1) gives any person who proves by clear and convincing evidence injury by reason of a violation of section 772.103 a cause of action for threefold the actual damages, with a minimum of $200. Section 772.104(3) bars punitive damages.
Wire Fraud Predicate
18 U.S.C. 1343 reaches whoever, having devised a scheme to defraud or to obtain money or property by false or fraudulent pretenses, representations, or promises, transmits or causes to be transmitted by wire in interstate or foreign commerce any writings, signs, signals, pictures, or sounds to execute the scheme. It is a criminal statute, but because 18 U.S.C. 1961(1) lists wire fraud and section 772.102(1)(b), Florida Statutes, treats the offenses on that list as criminal activity, wire fraud can form part of the pattern of criminal activity that a claim under sections 772.103 and 772.104 requires; referrals to law enforcement and forfeiture proceedings can also be a path to recovery alongside civil claims.
How a Token Fraud Claim Is Built
The blockchain records what happened; the promotions record what was said.
Trace the funds. Liquidity removals, developer wallet sales, and transfers to exchanges are traced on-chain. Where proceeds reach a platform that holds customer accounts, preservation requests and legal process are directed there.
Collect the statements. Websites, social posts, group chats, whitepapers, and token contract code are preserved and compared to what the insiders did. The difference between what was said and what was done is the core of a buyer’s claim under Rule 10b-5 or section 517.301; the federal appeals court for Florida has held that section 17(a) gives buyers no private claim, and 7 U.S.C. 25(a) limits private suits under the Commodity Exchange Act, including for violations of Rule 180.1, to the kinds of transactions it lists, such as futures, options, swaps, and commodity pool interests.
Identify the people. Section 517.211 reaches directors, officers, partners, and agents who personally participated or aided in the sale. Promoters, developers, and wallet holders are identified from on-chain and off-chain records.
Choose the remedy. Rescission or damages under section 517.211, treble damages under section 772.11 or 772.104, or federal claims, chosen on the facts and the proof available. The civil theft and civil remedies statutes require clear and convincing evidence, so they are used where the proof is strong.
Pre-suit demand. Section 772.11(1) requires a written demand before filing a civil theft action, and the 30-day response period is calendared.
Read more...
They consistently deliver thorough and timely work. We wholeheartedly recommend IBL.”
Client testimonials describe individual experiences. You may not obtain the same or similar results.
Read more...
I would recommend working with Aaron and team.”
Client testimonials describe individual experiences. You may not obtain the same or similar results.
Read more...
As a result, we’ve continued to rely on them as our go-to legal counsel for ongoing corporate matters.”
Client testimonials describe individual experiences. You may not obtain the same or similar results.
Read more...
The attorneys were incredibly responsive, guiding me through every step of the process with clarity and professionalism.
They took the time to address all my questions and concerns, ensuring that I felt confident in each decision we made. Their attention to detail and thoroughness were evident in the documents they prepared, which gave me peace of mind. What stood out most was their commitment to my vision. They not only provided legal advice but also offered valuable insights into the industry, helping me navigate potential challenges and seize opportunities.
Overall, working with IBL was a fantastic experience. They made a complex process manageable and stress-free. Thank you for your outstanding support.”
Client testimonials describe individual experiences. You may not obtain the same or similar results.
How We Handle a Token Fraud Claim
Wallet addresses, transaction hashes, purchase records, and screenshots of the promotions relied on.
Liquidity, developer, and treasury flows traced to their destinations.
Websites, posts, chats, and contract code preserved before they disappear.
Developers, promoters, and recipients identified from on-chain and platform records.
Federal fraud, Chapter 517, civil theft, or civil remedies claims chosen on the proof.
Pre-suit demand under section 772.11 where used, and the complaint filed in the proper court.
Asset freezes where available, judgment, and enforcement against traced assets.
FAQ
01 • Token Buyers Is a rug pull illegal?
Where the insiders made material misstatements or used a scheme to defraud in connection with the sale, Rule 10b-5, section 17(a), CFTC Rule 180.1, and section 517.301, Florida Statutes, each prohibit the conduct, depending on how the token is classified.
02 • Token Buyers Does it matter if the token is a security or a commodity?
It decides which anti-fraud provision applies: Rule 10b-5 and section 17(a) for securities, CFTC Rule 180.1 for commodities. Fraud is prohibited under both, and the SEC’s March 2026 interpretation, Release No. 33-11412, treats meme coins as digital collectibles that are not themselves securities, although a non-security crypto asset can be offered and sold subject to an investment contract, which is a security.
03 • Token Buyers Can I get triple damages in Florida?
Sections 772.11 and 772.104 provide threefold actual damages on clear and convincing proof of the underlying violation, and section 772.11 requires a written pre-suit demand.
04 • Token Buyers Can the developers be held personally liable?
Section 517.211 makes every director, officer, partner, or agent who personally participated or aided in the sale jointly and severally liable for rescission or damages.
05 • Token Buyers Can stolen funds be traced?
Transactions on public blockchains can be traced to the addresses and platforms that received them. Recovery depends on reaching assets held by an identifiable person or platform.
Token buyers nationwide. Call (202) 860-1210 or send your wallet addresses and transaction records through the form. Free consultation.
This page provides general information about claims arising from token frauds and rug pulls under federal and Florida law and does not constitute legal advice. Reading it does not create an attorney-client relationship with Industria Business Lawyers. Whether a claim, defense, or obligation exists depends on the facts and the law in force. Provisions cited were read on October 9, 2026 from the 2026 Florida Statutes at flsenate.gov, the United States Code, and the Code of Federal Regulations.