Blackrock, the world’s foremost asset manager overseeing $10.5 trillion in assets, has issued a stark warning about the rise in cryptocurrency scams.
Blackrock, the world’s foremost asset manager overseeing $10.5 trillion in assets, has issued a stark warning about the rise in cryptocurrency scams. The company advises extreme caution when interacting with individuals, websites, or social media platforms that claim affiliation with Blackrock and offer training or investment opportunities. There has been a significant increase in fraudulent schemes directing users to crypto investment-related websites or platforms such as WhatsApp and Telegram.
Blackrock’s Official Warning on Cryptocurrency Fraud
Related: Bitcoin Records Fourth Maximum Gain Day in 2024 as Blackrock ETF Hits Unprecedented Trading Volume
On Sunday, Blackrock, managing nearly $10.5 trillion in assets as of the first quarter, alerted the public to a surge in crypto-related scams. In a post on social media platform X, Blackrock highlighted:
“There has been a spike in investment-related scams, including directing users toward crypto investment-related websites and/or social media platforms such as WhatsApp or Telegram.”
The asset manager strongly cautioned against engaging with individuals or platforms using Blackrock’s brand for offering investment advice or training. “Blackrock and our executives never contact individuals through social media with investment offers or solicit payments. Stay vigilant, and if you suspect fraudulent activity, do not proceed,” the firm emphasized.
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Blackrock detailed that scammers might impersonate Blackrock employees or senior executives, promising high returns. Typical schemes involve inviting individuals to stock or crypto training sessions on social media and sharing trading signals. Victims are often coerced into trading on fake platforms and asked to deposit more funds to withdraw supposed profits.
The firm’s spot bitcoin exchange-traded fund (ETF), the iShares Bitcoin Trust (IBIT), has gathered $23 billion since its January launch, becoming the leading spot bitcoin ETF in the U.S. Blackrock has also launched an ether ETF, expanding its crypto investment offerings.
Larry Fink’s Shift Towards Bitcoin Advocacy
Larry Fink, CEO of Blackrock, has transitioned from skepticism to advocacy for bitcoin, now referring to it as “digital gold.” Fink sees bitcoin as a hedge against economic instability and currency devaluation, underscoring its importance in a diversified investment portfolio. He recently remarked, “I do believe there’s a real need for everyone to look at it as one alternative to, I would say, the optimism that I have in the world.”
