Blackrock Warns of Rising Crypto Investment Scams
August 1, 2024 – Blackrock, the world’s largest asset manager with $10.5 trillion in assets under management, has issued a cautionary warning about a surge in cryptocurrency-related scams. The firm highlighted an increase in fraudulent activities where scammers impersonate Blackrock employees or use the company’s brand to lure victims into fake investment schemes.
In a recent post on the social media platform X, Blackrock warned investors about the growing prevalence of scams that direct users to fraudulent crypto investment websites and social media platforms such as WhatsApp and Telegram. The asset manager emphasized that neither Blackrock nor its executives engage in contacting individuals through social media to offer investment opportunities or solicit payments.
“Common schemes include inviting individuals to stock or crypto training sessions on social media and offering to share trading signals,” Blackrock stated. The firm explained that these scams often involve victims being encouraged to trade on fake platforms, with the perpetrators demanding additional deposits before allowing withdrawals of purported returns.
Rising Concerns Amidst Crypto Popularity
The warning comes at a time when Blackrock’s own involvement in the cryptocurrency market has been expanding. Since its launch in January, the firm’s spot bitcoin exchange-traded fund (ETF), the iShares Bitcoin Trust (IBIT), has amassed $23 billion, making it the leading spot bitcoin ETF in the U.S. Additionally, Blackrock recently introduced an ether ETF.
Blackrock CEO Larry Fink, who previously expressed skepticism towards bitcoin, has since shifted his stance, now referring to it as “digital gold.” He argues that bitcoin is a valuable asset for investors seeking protection from economic instability and currency debasement. “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 stated, underscoring the importance of considering bitcoin as a part of a diversified investment portfolio.
As the cryptocurrency market continues to grow, so do the associated risks of fraud and scams. Blackrock’s warning serves as a reminder for investors to exercise caution and verify the authenticity of any investment opportunities, especially those involving digital assets.
Source : news.bitcoin.com
Related News – qerra.news
