FBI Warns Crypto Owners Not to Fall for ‘Liquidity Mining Scam’

The Federal Bureau of Investigation (FBI) has warned crypto investors astir a scam utilizing an concern strategy called liquidity mining. “This scam has been liable for implicit $70 cardinal successful combined unfortunate losses,” said the instrumentality enforcement agency.

FBI Warns of Crypto Liquidity Mining Scam

The Federal Bureau of Investigation (FBI) issued an capitalist alert Thursday informing crypto owners of a scam targeting them. The instrumentality enforcement bureau announced:

The FBI is issuing this nationalist work announcement to pass American citizens astir a cryptocurrency scam utilizing an concern strategy called Liquidity Mining successful which scammers exploit owners of cryptocurrency, typically tether (USDT) and/or ethereum (ETH).

“Liquidity mining is an concern strategy utilized to gain passive income with cryptocurrency,” the FBI explained. “In morganatic liquidity mining operations, investors involvement their cryptocurrency successful a liquidity excavation to supply traders with the liquidity indispensable to behaviour transactions. In return, the capitalist receives a information of the trading fees.”

Claiming to usage this concern strategy, “Scammers person victims to nexus their cryptocurrency wallets to fraudulent liquidity mining applications. Scammers past hitch retired the victims’ funds without notification oregon support from the victim,” the FBI cautioned.

“Scammers attack imaginable victims done an unsolicited nonstop connection (DM) connected societal media, dating applications, oregon messaging services specified arsenic Facebook, Instagram, Twitter, Linkedin, Whatsapp, etc.,” the announcement adds.

Victims of a liquidity mining scam determination cryptocurrency from their wallets to the liquidity mining platform, the FBI detailed. After investing, they often spot the purported returns connected a falsified dashboard. Believing their investments to beryllium a success, they acquisition further cryptocurrency. Scammers yet determination each stored cryptocurrency and investments made to a wallet they control.

The FBI noted:

Since January 2019, according to the FBI’s Internet Crime Complaint Center (IC3) and unfastened source, this scam has been liable for implicit $70 cardinal successful combined unfortunate losses.

What bash you deliberation astir the liquidity mining scam targeting crypto owners? Let america cognize successful the comments conception below.