DeFi empowers users with more fair, anonymous, and convenient ways to manage and invest assets, but it also brings the risk of anonymous fraud.
In decentralized applications, "liquidity mining" is a common revenue program. In liquidity mining, users deposit their crypto assets into smart contracts to provide liquidity and are rewarded with a certain token in return. Adequate liquidity increases the depth and liquidity of trading pairs on decentralized exchanges. It contributes to lower transaction costs, reduced slippage, and increased speed and efficiency of trade execution.
As there are many DeFi projects in the market, users may not check their reliability one by one when using them. Moreover, scammers usually take advantage of the anonymity of DeFi to hide their real identity and escape after cheating users' trust and assets, which results in users being unable to recover their assets after being stolen and having nowhere to file a complaint. Therefore, it is a must for every user to update their knowledge of the blockchain industry, operate their assets with caution, and pay attention to the safety of their assets on time.
To interact with a DeFi project, a user needs to connect to a wallet address and authorize a certain amount of assets within the address to the project before using it, and in this step there is a risk of fraud included. Scammers may use high returns to attract users and lead them to authorize assets to scam projects.
CoinEx Wallet has received feedback from users that assets in the wallet have been lost without personal action.
We learned that users were invited to a telegram group (unofficial group) called "ViaWallet Community" from Telegram and other social media platforms, where they were introduced to a liquidity mining project that required them to use their ViaWallet to authorize the project (the former ViaWallet Wallet has now been upgraded to CoinEx Wallet). Users did not notice and modify the amount of authorization, leading them to authorize a large amount of assets to the scam project at once. A few days later, the scammers transferred all the authorized crypto out of users' wallets.
Note: Since the assets in the wallet have already been authorized, the project owner does not need your authorization if they want to transfer them out of your wallet.
As a Web3 wallet, CoinEx Wallet allows you to interact with all kinds of DApps smoothly, but due to the anonymity of the blockchain and the on-chain mechanism, we are unable to identify fraudulent projects for you and help you recover lost assets. Make sure that the links and projects are trustworthy before your authorization, limit the authorized amount, and disconnect the authorization in time after using the DApp.
To avoid liquidity mining scams, please remain vigilant, carefully research the background and credibility of the program or platform, do not blindly believe in excessive return promises, avoid investing money in unclear or untrustworthy programs, and protect personal information to prevent identity theft.
If you have any questions or feedback when using CoinEx Wallet, feel free to:
Send us an email: support@wallet.coinex.com
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