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The Federal Bureau of Investigation (FBI) has warned crypto investors about a scam using an investment strategy called liquidity mining. \u201cThis scam has been responsible for over $70 million in combined victim losses,\u201d said the law enforcement agency. \n 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<\/a>) and\/or ethereum (ETH<\/a>).<\/p>\n<\/blockquote>\n \n Claiming to use this investment strategy, \u201cScammers convince victims to link their cryptocurrency wallets to fraudulent liquidity mining applications. Scammers then wipe out the victims\u2019 funds without notification or permission from the victim,\u201d the FBI cautioned.<\/p>\n \u201cScammers 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.,\u201d the announcement adds.<\/p>\n 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.<\/p>\n The FBI noted:\n<\/p>\n Since January 2019, according to the FBI\u2019s Internet Crime Complaint Center (IC3) and open source, this scam has been responsible for over $70 million in combined victim losses.<\/p>\n<\/blockquote>\n
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<\/strong>\n<\/p>\nFBI Warns of Crypto Liquidity Mining Scam<\/h2>\n
\nThe Federal Bureau of Investigation (FBI) issued an investor alert Thursday warning crypto owners of a scam targeting them. The law enforcement agency announced:\n<\/p>\n\n
\n\u201cLiquidity mining is an investment strategy used to earn passive income with cryptocurrency,\u201d the FBI explained. \u201cIn 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.\u201d<\/p>\n\n