FBI, Cryptocurrency FBI Warns Crypto Investors of Mining Scam

The Federal Bureau of Investigation (FBI) has warned Cryptocurrency investors regarding a potential scam using an investment strategy called liquidity mining. The law enforcement agency said that the liquidity mining fraud has been responsible for over $70 million in total losses.


The Federal Bureau of Investigation (FBI) issued an alert for Cryptocurrency investors on Thursday warning of a potential scam targeting them. The law enforcement agency announced that fraudsters exploit cryptocurrency owners, typically of Tether (USDT) and/or Ethereum (ETH)


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FBI further explained that the Liquidity mining is a passive income investment strategy applicable to Digital Currency and Assets. The announcement further adds that in authentic liquidity mining operations, crypto investors stake their Digital Currency in a liquidity pool to provide crypto traders with the liquidity necessary to conduct transactions. In turn, the investor receives a portion of the trading fees.



FBI cautioned Crypto investors that the scammers approach potential victims through an unsolicited message on social media, dating apps, messaging services such as FB, Instagram, Twitter, etc. Scammers then convince the victims to link their crypto wallets to fraudulent liquidity mining apps, scammers then wipe out the victim’s invested funds without permission or notification from the victim.


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The victims of the liquidity mining scam move Digital Currency from their wallets to the fraudulent liquidity mining platform, the FBI detailed. After investing, they often see the ostensible returns on a fake dashboard. Believing their investments to be a success, they purchase further more Digital Currency. Scammers ultimately move all stored Digital currency and investments made to a wallet they control.


According to FBI’s Internet Crime complaint center (IC3), since January 2019, this scam has been responsible for over $70 million in total victim losses.


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