Blackrock Issues Urgent Alert on Cryptocurrency Scams

With $10.5 trillion in assets under management, Blackrock is the largest asset manager in the world. It has released a strong warning over an increase in bitcoin scams. The company has noticed a rise in dishonest practices that use its reputation to entice people to engage in scams. Users are frequently led by these scams to social media sites like Telegram and WhatsApp or websites pertaining to cryptocurrencies.

In a recent post on the social media platform X, Blackrock stated: “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.”

Exercise Caution

Blackrock advises extreme caution when dealing with individuals, websites, or social media platforms that use its brand to offer training or investments. The asset manager emphasized that neither Blackrock nor its executives contact anyone through social media to solicit investments or payments. The firm urged vigilance, advising, “Please remain vigilant and if you suspect fraudulent activity, do not proceed.”

Scammers often impersonate Blackrock employees or senior executives, promising high returns on investments. Common tactics include inviting individuals to stock or crypto training sessions on social media and offering trading signals. Victims are frequently asked to place trades on fake platforms and deposit additional funds before they can withdraw their purported returns.

Despite these warnings, Blackrock remains active in the cryptocurrency space. The firm’s spot bitcoin exchange-traded fund (ETF), the iShares Bitcoin Trust (IBIT), has attracted $23 billion since its launch in January, making it the leading spot bitcoin ETF in the U.S. Additionally, Blackrock has introduced an ether ETF to further expand its offerings.

Larry Fink, CEO of Blackrock, has undergone a significant shift in his stance on bitcoin. Initially skeptical, he now advocates for bitcoin, viewing it as “digital gold.” Fink believes BTC offers valuable protection against economic instability and currency debasement, making it a crucial asset for investor portfolios. He recently stated, “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.”

In light of the increasing number of scams, Blackrock’s warning serves as a crucial reminder to remain cautious. By staying informed and vigilant, investors can protect themselves from falling victim to fraudulent schemes.