BlackRock Warns Investors of Rising Crypto Scams Amid Ethereum ETF Launch

• BlackRock reports a surge in crypto scams post-Ethereum ETF launch.
• Scammers use BlackRock’s name on fake crypto sites, the firm warns.
• Coinbase impersonation scam leads to $1.7M loss, vigilance urged.

On July 23, BlackRock launched its Spot Ethereum ETF, triggering a wave of excitement in the crypto investment community. However, the world’s largest asset manager, which oversees $10.6 trillion in assets, has issued a stark warning about the surge in crypto-related scams. As fraudsters increasingly use BlackRock’s name to deceive investors, the company urges caution among crypto enthusiasts.

In a recent post on X, BlackRock highlighted a concerning rise in investment scams, where fraudsters lure individuals to fake crypto investment websites and social media platforms such as WhatsApp and Telegram. The company clarified, “Neither BlackRock nor its executives solicit investments or payments via social media.” They advised investors to remain vigilant and to avoid proceeding if they suspect fraudulent activity. BlackRock’s website provides additional insights into the sophisticated methods scammers use, such as phishing websites and fake platforms designed to capture personal information.

Scammers often present themselves as knowledgeable and credible, using legitimate-sounding names and information to build trust. These fraudsters invest significant time researching their targets to create a sense of familiarity and trust. For example, one common tactic involves creating phishing websites that mimic legitimate investment platforms. Once they capture personal information, they use it to offer seemingly attractive investment opportunities. BlackRock emphasizes the importance of vigilance and advises against engaging with unsolicited investment offers.

A recent scam involving impersonation of Coinbase employees illustrates the severity of the issue. According to CryptoTale, scammers posing as Coinbase representatives contacted a victim via a Google Voice call and an official-looking email. The scammer, using the alias “David Brown,” claimed to be from Coinbase’s security team and informed the victim about unauthorized transactions. The scammer then provided information about the victim’s previous addresses to build credibility. Despite initial skepticism, the victim was convinced and subsequently lost $1.7 million from their self-custody wallet.