Is it illegal to rug pull?

So, let me get this straight. Is it actually against the law to engage in a rug pull in the world of cryptocurrency? I mean, I've heard rumors about people doing it, but I'm not entirely sure what the legal implications are. Could you clarify for me? Is it considered fraud or some other form of criminal activity? And if so, what kind of penalties are typically associated with it? I'm genuinely curious about this, as it's a topic that's been on my mind lately.