Liquidity mining scam

Liquidity-mining scams are a wallet-drainer variant of the pig-butchering playbook. A "mentor" from WhatsApp, Telegram, or a dating-app contact introduces you to a "DeFi yield platform" promising spectacular returns. To participate, you connect your wallet via WalletConnect.

The smart contract you sign authorizes the platform to move tokens from your wallet. You see a "balance" growing — sometimes 8% daily — that is purely a display value on the platform's site. When you try to withdraw, you discover the wallet is empty or being slowly drained.

This is one of the highest-loss crypto scam patterns, often pulling six and seven figures per victim, because the introducer builds trust over weeks before the wallet connection.

• A stranger or "mentor" introduces you to the platform.
• Returns are advertised as guaranteed and unusually high (5-15% daily).
• The platform isn't listed on DefiLlama, CoinGecko's DEX tracker, or any major DeFi index.
• WalletConnect prompts a "SetApprovalForAll" or "Permit" signature.
• Withdrawals require an "unlock fee," "tax pre-payment," or new deposit to "verify activity."
• The platform's smart contract isn't published on a major chain explorer, or is recently deployed.
• Customer support is only via Telegram or WhatsApp.

1. Real DeFi protocols are open-source and listed on DefiLlama. Check there first.
2. Read every WalletConnect signature. "SetApprovalForAll" gives the contract unlimited authority over your tokens. Treat it as draining your wallet.
3. Real yields in DeFi are 2-12% APY, not 8% daily. Anything higher implies extreme risk or fraud.
4. Use a hardware wallet that displays contract details. Hardware wallets force you to read each transaction.
5. Apply the rule: anyone introducing you to a "guaranteed-yield" platform is the scam, regardless of how nice they've been.

• Move remaining funds immediately to a fresh wallet.
• Revoke approvals at revoke.cash. Do not delay.
• Report the contract to chain-analytics services.
• Capture transaction hashes, the platform URL, the contact's profile, all chat history.
• Report to IC3 with full details. Significant losses may be referred to the FBI Virtual Asset Unit.
• Expect a recovery scam DM. Block proactively.

• Do not approve "unlimited" allowances. Finite approval is always safer.
• Do not add more funds to "increase yield" after the first.
• Do not pay any "unlock fee," "tax," or "verification deposit" to withdraw.
• Do not trust the "balance growing" display. It's just a number on a webpage.

• FTC: reportfraud.ftc.gov — the broadest US fraud intake; reports flow to thousands of law-enforcement agencies.
• FBI IC3: ic3.gov — the right destination when the scam is internet-enabled (phishing, BEC, romance, crypto).
• CFPB: consumerfinance.gov/complaint — for complaints about banks, money transmitters, payment apps, credit cards, debt collection.
• IdentityTheft.gov — if any identity information (SSN, driver's license, account credentials) was shared.
• Your bank or payment platform. Call the number on the back of your card or use the app's in-product help. Time matters — wires can sometimes be recalled within hours; ACH and Zelle are harder but worth trying.