BlackRock Issues Warning Against Major Crypto Scams

• New York-based financial giant BlackRock has warned about crypto scams

Financial behemoth BlackRock has issued a warning about cryptocurrency-related scams on its social media account. 

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…

— BlackRock (@BlackRock) July 28, 2024

“We urge caution in dealing with individuals, websites or social media platforms using our brand and offering training or investments,” BlackRock said. 

BlackRock has stressed that it never contacts anyone through social media platforms. 

Last year, it took legal action against the owner of various fake domains that were impersonating the New York-headquartered company in order to defraud investors. Some of the bogus websites were related to crypto. 

Last December, an XRP exchange-traded fund (ETF) called “BlackRock iShares XRP Trust” was submitted by a fraudster, pushing the price of the Ripple-affiliated altcoin significantly higher. BlackRock ended up issuing a statement that the filing was fake.  

During a recent CNBC interview, BlackRock CEO Larry Fink said that he views Bitcoin as a “legitimate” investment. In 2017, Fink dismissed the largest cryptocurrency as merely a tool for money laundering. 

In January, BlackRock launched a highly successful Bitcoin ETF. Earlier this month, the company’s Ethereum ETF also went live, significantly outperforming competing ETF products.  

According to data provided by the Federal Bureau of Investigation (FBI), cryptocurrency investment scams resulted in nearly $4 billion worth of losses last year in the US.

The rise of generative AI makes it easier for scammers to create convincing deepfakes in order to defraud crypto investors.