BlackRock’s Ethereum Wallet Gets Flooded with Memecoins and NFTs, Raises Legal Concerns
BlackRock, one of the world’s largest asset management firms, recently found itself in hot water after launching a $100-million money market fund that operates entirely on the Ethereum blockchain. What was meant to be a foray into the world of digital assets quickly turned into a circus, as the fund’s Ethereum address was flooded with low-quality memecoins and NFTs, most of which hold little to no value.
While there is $100 million USDC in the suspected BlackRock Ethereum wallet, there are also 100 other cryptocurrencies, including tokens like Jesus Coin, Cramer Coin, and HarryPotterObamaSonic10Inu, that were definitely not purchased by BlackRock. Additionally, NFTs like CryptoDickbutts and KaijuKingz were added to the mix, further complicating the fund’s portfolio.
The situation has raised legal concerns for BlackRock, as one prankster tainted the wallet with 1 ETH ($3,350) that was washed and sent through the sanctioned crypto mixer Tornado Cash. This action could potentially put BlackRock at risk of being sanctioned by the Department of Treasury’s Office of Foreign Assets Control (OFAC) for holding ether washed by an illegal protocol.
The incident highlights the challenges and risks associated with working with cryptocurrencies, especially when mixing legitimate assets with tokens of dubious origin. It also serves as a cautionary tale for other institutions looking to venture into the world of digital assets.
In the end, the lesson seems to be clear: perhaps BlackRock should have stuck with bitcoin.