BlackRock Warns About Cryptocurrency Scams: Insights from Alex Dovbnya
Financial giant BlackRock has issued a warning about cryptocurrency scams, urging caution when dealing with individuals, websites, or social media platforms using their brand to offer training or investments. The New York-based company emphasized that they never contact anyone through social media platforms.
Last year, BlackRock took legal action against the owner of fake domains impersonating the company, some of which were related to cryptocurrency, in an attempt to defraud investors. Despite previously dismissing Bitcoin as a tool for money laundering, BlackRock’s CEO Larry Fink now views it as a legitimate investment. The company recently launched successful Bitcoin and Ethereum ETFs.
However, cryptocurrency scams are still rampant, with the FBI reporting nearly $4 billion in losses from investment scams last year in the US. The rise of generative AI has made it easier for scammers to create convincing deepfakes to defraud crypto investors.
As the industry continues to evolve, it is crucial for investors to remain vigilant and cautious when engaging with cryptocurrency-related opportunities. Stay informed and be wary of potential scams to protect your investments.
