Liquidity Mining Scams on the Rise: Uncovering a $1M Crypto Fraud Operation

September 18, 2023.

Sophos X-Ops has identified a surge in liquidity mining scams, a form of cryptofraud exploiting mobile crypto wallets and decentralized finance (DeFI) apps. The scams, initially simple in their approach to attract victims to fraudulent mining pools, have evolved, employing sophisticated tactics to siphon funds. Sophos X-Ops researcher @thepacketrat was contacted by a victim named “Frank,” revealing a liquidity mining scam ring that amassed over $1 million in three months. Frank, initially approached on the dating app MeetMe, fell prey to scammers who, after weeks of conversation, convinced him to invest in a fake liquidity pool, resulting in significant financial losses. The investigation uncovered 13 more domains tied to the scam ring and hundreds of similar sites.

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