BlackRock Warns Users of Crypto Investing Risks

American global investment management corporation stated that the nature of cryptocurrencies makes them tricky investment targets
27 February 2018   700

BlackRock is an American global investment management corporation based in New York City, and one the world's largest asset managers guiding individuals, financial professionals and institutions in building financial futures.

On February 26, BlackRock has released a global weekly commentary entilted "Sizing up the crypto craze", elaborating on such key points as:

  • Cryptocurrencies could gain wider appeal over time, but we see them as far from earning a place in mainstream investment portfolios for now
  • The Federal Reserve expressed greater confidence in both its growth forecast and inflation outlook, sending U.S. government bond yields up
  • Germany’s Social Democrats are expected to approve a coalition government, despite rising chances of a no vote, Italy goes to the polls

The report was presented by Richard Turnill. On the one hand, the study states that cyptocurrencies are gaining wide populary and becoming mainstream nowadays, but, on the other hand, crypto markets are highly volatile, fragmented, largely unregulated, and come with unique liquidity and operational risks.

The volatility of the cryptocurrencies makes the gyrations in the U.S. equity market during the global financial crisis almost look placid.
 

Richard Turnill

Global Chief Investment Strategist, BlackRock 

The study claimed that blockchain and cryptocurrencies surely have the bright future in front of them, but they still remain risky in terms of investment, and for now only "those who can stomach potentially complete losses" can consider investing in crypto. Moreover, blockchain technology needs to develop much more and undergo significant changes to be able to reach the heights many believe it is really capable of reaching.

US Authorities to Sell $4.3M Worth Seized BTC

As reported, the Bitcoins were seized during different federal investigations
18 October 2018   100

The US Federal Penitentiary and Marshals Service has announced an auction, during which 660 Bitcoins will be sold, previously confiscated by law enforcement agencies. The current market value of the coins put up for sale is about $ 4.3 million, CoinDesk reports.

Bitcoins offered for sale were seized during federal criminal, civil and administrative investigations.

The auction will be held on November 5, and to participate in it, you must register no later than October 31 and make a deposit of $ 200,000.

The trades will be divided into two parts and include the sale of six blocks of 100 BTC and one more block of 60 BTC. Auction participants will not be able to view other people's rates or change their own.

The Office clarified that part of the assets put up for auction includes Bitcoins, which were seized during the recent investigations into the cases of the traders Teresa Tetley and Thomas Mario Costanzo. Teresa Tetley was sentenced in July to a year in prison on charges of trading in cryptocurrency without the necessary license and laundering money obtained from drug trafficking.

The Marshals do not report which part of the bitcoins seized from Tetley and Costanzo is put up for auction, however, it was previously known that 40 BTC were withdrawn from the first, and 80 BTC from the second.

Two previous major auctions for the sale of confiscated bitcoins were held in the United States in January and March of this year. In the first case, 3813 BTC was sold, in the second - 2170 BTC.