New York-based financial giant, BlackRock has issued a strict warning to investors regarding cryptocurrency scams. The firm noticed an increase in crypto investment scams since the spot Ethereum came to life. Therefore, it implored investors to be cautious before making any investment decisions
BlackRock Wants Investors to Look Before Leaping
BlackRock said recent trends has brought the increased threat of crypto scams on its platform to their attention.
“We advise being cautious when engaging with individuals, websites, or social media platforms that use our brand to promote training or investments,” the firm wrote, adding that “neither our firm nor its executives seek out investments or payments through our social media platform.”
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
This warning stemmed from a fake filing experience the firm had with a fraudster last year. In December, a fake XRP ETF named BlackRock iShares XRP Trust was filed by the scammer. This caused a surge in Ripple’s price. BlackRock debunked the filing and clarified it was not genuine.
The firm went after the bad actor and sued for malicious acts.
BlackRock Crypto Success Attracts Crypto Scammers
Recently, the firm recorded a significant milestone that showcases its dedication and expertise. It now has over $10 trillion worth of assets in its care. This was propelled by the successful Bitcoin ETF product launched in January. Although, the firm’s CEO Larry Fink initially brushed off the leading crypto asset as just a tool for money laundering in 2017, his stance has changed remarkably.
Furthermore, the recently introduced Ethereum ETF products added to this huge success. It is doing exceptionally well in the market. No doubt, as the popularity of these digital investment products grows, it increases interest in crypto investments. This makes traders and investors more susceptible to fraudulent schemes. BlackRock’s warning comes at a time when crypto scams are on the rise in the industry.
In June, it was revealed by Crystal Blockchain that illegal activities, hacks since 2011 have sparked over $19 billion in losses. The crypto community has voiced their concerns that the increasing use of generative Artificial Intelligence (AI) is majorly contributing to the hack. It has simplified scammers’ ability to produce convincing deepfakes to deceive crypto investors.
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