This blog tells useful information on how to avoid defi mining scams online and report them. Let's learn here whether defi or decentralized finance is secure or not, is crypto mining illegal?, and how it is profitable?, Decentralise exchanges DEXs, Automated market makers AMMs.
With the growth of crypto wallet apps, coins, and investments, more and more scammers grew up in countries like India, China, the USA, the UK, etc. These scammers use different forms of scamming activities to steal money. It can be from an exchange wallet like Coinbase or from other sources. Here is real evidence of how defi smart contract scammers Jing Chen scammed around 11287 USD from a coinbase wallet from an unemployed person in India. The case has been registered but no evidence of catching reported the reporting activity is still ongoing. We are looking for similar victims who can join our team to fight them from your country expert. The way Jing Chen steals money is from social media Instagram where she plays the pig butchering, ie turning someone into love and stealing all the money by letting them trust to earn more money more percentage.
What is a defi mining Scam?
A Defi SCAM Uses programs to pull the rug out in smart contract liquidity mining. They can modify the smart contract tokens to withdraw or sell without the consent of the owners.
How safe is defi Mining in the future?
If we people are polite and leave all ego then various defi projects can be more secure than traditional systems. Do you know blockchain keeps data permanently and visible and now can be modified? To change it it must allow peer-to-peer network noticing.
As per the recent news, the Federal Bureau of Investigation (FBI) warned new cryptocurrency investors not to join the smart contract liquidity mining scam. Till now altogether lost money accounted for $70 million. Here is the proof
Such type of scammer uses many ways to steal money on exchange wallets like coinbase. They might insist you to use the coinbase wallet and earn extra income daily online. Pig butchering romance scams, rug pull, phishing, etc are some example forms of such activities.
But Still wonder how this coinbase allows the worm Ethereum inside the wallet, and this is something controversial. In our ideas, a company must not allow worms inside its wallet, it must be secure worldwide.
As you know the coinbase company has thousands of such problems lying unsolved till today because finding those scammers is not also an easy task if we dont support each other.
IN such a type of passive income-earning method, one has to expose risk and wait for recovery.
How do mining scams work?
The mining scams work in such a way that unreal big companies' employees ask you to put money in crypto cloud mining, which they never mine and instead empty your wallet. As already told their activities may include flash loans which allow hackers to borrow unlimited amounts of money without any guarantee of repayment in the future, these hackers can also modify defi program protocol and empty liquidity pools or funds in a few weeks.
In general, they tried to take the money in before 2 or 3 weeks.
So beware of such pig butcherers that can lure you to a fake mining scheme. They will ask you to deposit funds and start earning more than 3 % daily.
Are there scams in the Defi wallet?
Yes, there is a threat in the wallet and as per the report in 2021, more than 12 billion US dollar assets were stolen from users' exchange wallets. This was due to the poor program network of the smart contracts and less security.
Is Defi Liquidity Mining Safe?
No, this type of investment activity is not useful and fake. There is no profit and all you face in the end is a total loss of money from your cold or hot exchange wallet. As to say there is no shortcut to easy money making but once you try to earn by sweat, it will give you some shinenesss.
In the future for your security, we brought this helpful information, to let you also know how millions of pig butchers are growing up in this internet world.
So when you enter or sign up on any social media, be secure yourself, and dont indulge in making too many friends, as it might be a headache too.
How to prevent Defi uniswap UNI token Mining scams?
To prevent such scams, you must follow is never join any unknown social media groups, never accept friend requests sent from strangers, dont visit spam fake websites, never trust people who ask for high interest in fewer days, etc. What techniques they might use include romance scams, pig butchering, giveaways, amazon, or job scams. If your crypto is stolen via such scams from your exchange wallet, what immediate steps recommended ios complain to the nearest legal authority firm in your country. Alternatively, you can also contact the chain analysis website for more information about how to recover your stolen crypto from your wallet.
- Ponzi Schemes: Scammers promise unusually high returns, using funds from new investors to pay earlier investors.
- Fake Liquidity Pools: Scammers create fake liquidity pools, convincing investors to deposit funds into non-existent pools.
- Token Scams: Scammers create worthless tokens, promoting them as lucrative investment opportunities.
- Exit Scams: Scammers disappear with invested funds, abandoning the project.
- Unrealistic Returns: Promises of unusually high returns or guaranteed profits.
- Lack of Transparency: Unclear or complex project mechanics.
- Unregistered Projects: Unregistered projects or unlicensed operators.
- Poor Security: Inadequate or vulnerable smart contracts.
- Unverifiable Team: Anonymous or fake team members.
- Initial Promotion: Scammers promote the project, promising high returns.
- Fake Success Stories: Scammers fabricate success stories or testimonials.
- Liquidity Pool Creation: Scammers create fake liquidity pools or smart contracts.
- Investor Recruitment: Scammers recruit investors, often through social media or online forums.
- Fund Withdrawal: Scammers disappear with invested funds or abandon the project.
- WoToken: A $1.5 million Ponzi scheme targeting DeFi investors.
- PlusToken: A $2 billion Ponzi scheme disguised as a DeFi project.
- MMM Global: A Ponzi scheme promising 100% returns on Bitcoin investments.
- Research: Thoroughly research projects, teams, and smart contracts.
- Verify: Verify project registration and licenses.
- Transparency: Demand clear project mechanics and transparency.
- Security: Ensure robust security measures and audit reports.
- Regulatory Compliance: Check for regulatory compliance.
- Report to Authorities: File complaints with regulatory bodies (e.g., SEC, FinCEN).
- Alert Communities: Warn online communities and forums.
- Share Information: Share scam alerts on social media.
- Coindesk: DeFi scam alerts and updates.
- CryptoSlate: DeFi scam reporting and analysis.
- Blockchain Council: DeFi education and resources.
- What is DeFi liquidity mining?
- How do DeFi liquidity mining scams work?
- How can I protect myself from DeFi liquidity mining scams?
- What are the red flags of DeFi liquidity mining scams?
- Where can I report DeFi liquidity mining scams?
dentifying Crypto Scammers: Warning Signs and Prevention Strategies
Cryptocurrency scams are rampant, causing significant financial losses. Recognizing scammer tactics is crucial for protection.Common Traits and Behaviors
- Unrealistic promises: Guaranteed high returns, exaggerated benefits or unusually high interest rates.
- Urgency and pressure: Creating false scarcity, limited-time offers or threats to withdraw opportunities.
- Lack of transparency: Unclear project details, vague whitepapers or hidden team identities.
- Unregistered investments: Unlicensed sellers, unregistered securities or illegal investment schemes.
- Fake credibility: Bogus credentials, fake testimonials or manipulated social media.
- Poor communication: Evasive responses, unclear explanations or unprofessional language.
- Request for sensitive info: Seeking private keys, passwords or personal financial data.
- Unusual payment methods: Insisting on cryptocurrency or gift cards for "investments."
Scam Types
- Ponzi schemes: Returns paid from new investors, not profits.
- Phishing: Deceptive emails, texts or sites stealing login credentials.
- Initial Coin Offering (ICO) scams: Fraudulent token sales.
- Fake cryptocurrencies: Non-existent or clone coins.
- Giveaway scams: False promises of free cryptocurrencies.
Protection Strategies
- Research thoroughly: Verify projects, teams and regulatory compliance.
- Regulatory checks: Ensure registration with relevant authorities.
- Caution with unsolicited offers: Verify authenticity.
- Secure wallets: Use reputable, hardware wallets.
- Two-factor authentication: Enable extra security.
- Monitor accounts: Regularly check transaction history.
- Community validation: Consult reputable forums, experts.
- Patience: Avoid impulsive decisions.
Reporting Scams
- Local authorities: File police reports.
- Financial regulatory bodies: Inform SEC, FinCEN or equivalent.
- Cryptocurrency exchanges: Report suspicious activity.
- Online platforms: Flag scam content.
Vigilance and education are key defenses against crypto scams. Verify information, be cautious and report suspicious activities.ConclusionDeFi liquidity mining crypto scams pose significant risks to investors. By recognizing red flags, understanding scam tactics, and taking proactive measures, you can protect yourself from these malicious schemes.