Investment Rug Pulls Collecting Capital via Wise
Fraudulent investment projects collect startup capital from investors via Wise before disappearing with the funds, leaving investors with worthless assets or nothing at all.
Part of: Rug Pull Scams
Last reviewed: 1 June 2026
Not all rug pulls occur on-chain. Some investment fraud projects — presenting as startups, funds, or new financial platforms — collect initial capital via Wise international transfers from investors before absconding. Wise is used because it enables fast, multi-currency, cross-border transfers that are difficult to trace or reverse once funds reach the destination account.
The international nature of Wise payments also complicates recovery: funds can be moved to accounts in jurisdictions with limited cooperation in financial fraud investigations.
How this scam works on Wise
An investment opportunity is presented through professional marketing materials, Zoom calls with persuasive founders, and detailed pitch decks. Participants are asked to transfer their initial investment via Wise to a company account. After the fundraise closes, the founders withdraw all funds, the company website goes offline, and communication channels are closed.
Some scams have an operating phase where a simple product or dashboard is maintained for several months to build trust before the exit, allowing a second, larger fundraise.
Cross-border real estate or commodity investment schemes collecting Wise payments are particularly effective because the investment thesis sounds plausible and the amounts requested are proportionate to what real deals require.
Common red flags
- Investment project collects capital via Wise rather than through a regulated fund or custodial account
- Founders are largely or entirely online-only with no verifiable physical presence
- No regulatory registration as a fund, investment adviser, or financial institution
- Returns guaranteed or projected with no disclosure of material risks
- Wise transfer recipient is an entity registered in a jurisdiction unrelated to the project's stated operations
- Exit strategy or token unlock schedule significantly favours early investors, all of whom are the founders
How to protect yourself
- Never invest capital via Wise to any entity that is not a regulated investment firm in your jurisdiction
- Verify the entity's registration with your national financial regulator before transferring any funds
- Demand an independent audit report and legal opinion before committing to any significant investment
- Use an independent custodian or regulated escrow for any capital commitment exceeding a nominal amount
- Consult a licensed financial adviser before making any international investment
- Report unregistered investment solicitations to your national financial authority
How to report it
- File a complaint with your national financial regulator as an unregistered investment scheme
- Report to Wise's fraud team with recipient account details and the Wise transaction reference
- Submit a cybercrime complaint with your national authority including all communications and transfer references
Frequently asked questions
Is Wise liable for investment fraud conducted using its platform?
Wise operates as a regulated money transfer service and is not liable for how recipients use funds transferred through it. Wise has fraud reporting mechanisms and cooperates with law enforcement investigations, but investors sending money voluntarily to fraudulent projects have limited recourse through Wise directly.