investors about a scam using an investment strategy called liquidity
mining. “This scam has been responsible for over $70 million in combined
victim losses,” said the law enforcement agency.
FBI Warns of Crypto Liquidity Mining Scam
The Federal Bureau of Investigation (FBI) issued an investor alert
Thursday warning crypto owners of a scam targeting them. The law
enforcement agency announced:
The FBI is issuing this public service announcement to
warn American citizens about a cryptocurrency scam using an investment
strategy called Liquidity Mining in which scammers exploit owners of
cryptocurrency, typically tether (USDT) and/or ethereum (ETH).
“Liquidity mining is an investment strategy used to earn passive
income with cryptocurrency,” the FBI explained. “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.”
Claiming to use this investment strategy, “Scammers convince victims
to link their cryptocurrency wallets to fraudulent liquidity mining
applications. Scammers then wipe out the victims’ funds without
notification or permission from the victim,” the FBI cautioned.
“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.,” the
announcement adds.
Victims of a liquidity mining scam move cryptocurrency from their
wallets to the liquidity mining platform, the FBI detailed. After
investing, they often see the purported returns on a falsified
dashboard. Believing their investments to be a success, they purchase
additional cryptocurrency. Scammers ultimately move all 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 open source, this scam has been responsible
for over $70 million in
source link : https://news.bitcoin.com/fbi-warns-crypto-owners-not-to-fall-for-liquidity-mining-scam/
