Blackrock Issues Warning on Crypto Scams

Blackrock, the world's largest asset manager, warned about cryptocurrency scams on Sunday.

World’s largest asset manager Blackrock, which had $10.5 trillion AUM in the first quarter, has warned about cryptocurrency scams. The firm urged caution when dealing with individuals, websites, or social media platforms using its brand to offer training or investments.

Blackrock noted a spike in scams directing users to crypto investment-related websites or platforms like Whatsapp and Telegram.

Blackrock Warns About Crypto Scams

World’s largest asset manager Blackrock (NYSE:BLK) is warning about cryptocurrency scams on Sunday. Having reported nearly $10.5 trillion in assets under management (AUM) in the first quarter, Blackrock said in a post on social media platform X:

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.

“We urge caution in dealing with individuals, websites, or social media platforms using our brand and offering training or investments,” the asset manager added. “Blackrock and our firm’s executives never contact anyone through any social media platforms … with investment offerings or to solicit payment of any kind. Please remain vigilant and if you suspect fraudulent activity, do not proceed.”

According to Blackrock, scammers may pretend to be Blackrock employees or senior executives promising high investment returns. “Common schemes include inviting individuals to stock or crypto training sessions on social media and offering to share trading signals,” the asset manager detailed. “As part of cryptocurrency scams, victims may be prompted to place trades on various fake trading platforms and asked to deposit additional funds before withdrawing the returns of their fake investments.”

Blackrock’s spot bitcoin exchange-traded fund (ETF), the Ishares Bitcoin Trust (IBIT), has amassed $23 billion since its January launch, making it the leading spot bitcoin ETF in the U.S. Moreover, Blackrock has introduced an ether ETF.

Meanwhile, Larry Fink, CEO of Blackrock, has shifted from being skeptical of bitcoin to advocating for it, now viewing it as “digital gold.” He believes that BTC is valuable for investors who are seeking protection from economic instability and currency debasement, emphasizing its crucial role as a portfolio asset. “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,” Fink recently stated.

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