The Federal Bureau of Investigation (FBI) has warned the general public, especially crypto investors, to be wary about a scam project using liquidity mining to fleece unsuspecting people of their money. According to the statement, “This scam has been responsible for over $70 million in combined victim losses.”
The Federal Bureau of Investigation (FBI) has advised crypto investors in the US to be wary of the scam project using liquidity mining to steal their victim’s USDT or ETH. The statement disclosed that though liquidity mining could be legitimate, the scam project was using it to steal from its victims.
In the warning, the FBI disclosed
“Liquidity mining is an investment strategy used to earn passive income with cryptocurrency. In legitimate liquidity mining operations, investors stake their cryptocurrency in a liquidity pool to provide traders with the liquidity necessary to conduct transactions. In return, the investor receives a portion of the trading fees. ”
The law enforcement agency detailed the steps that scammers tend to use. They begin by building a “professional or personal relationship with victims over a few days to weeks.” The scammer then asks their victims to purchase cryptocurrency and “participate in liquidity mining by guaranteeing a return on investment of one to three percent daily.”
Usually, the scammers try to convince their victims to “link their cryptocurrency wallet to a fraudulent liquidity mining application.”
Once this is done, the scammer accesses the funds and steals them.
The warning also disclosed that
“Scammers approach potential victims through an unsolicited direct message (DM) on social media, dating applications, or messaging services such as Facebook, Instagram, Twitter, Linkedin, Whatsapp, etc.”
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