Unsolicited ETH Transfer to BlackRock Fund Wallet Raises Legal Concerns

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This transfer creates legal difficulties, emphasizing the complexities and unpredictability of handling digital assets. While earlier reports stated that the wallet was directly controlled by BlackRock, this has been rectified.

The BlackRock Fund Wallet Connection

The wallet is just affiliated with BlackRock’s BUIDL fund and does not fall under its direct supervision. This distinction is critical as the fund, which owns $100 million of USD Coin (USDC), navigates the complexity of the digital finance world.

BlackRock filed with the SEC on March 14 to sell its BUIDL fund, marking a substantial entry into the digital asset space. However, within 24 hours of launching the fund, the connected wallet began receiving a variety of tokens and NFTs from different addresses.

Notably, it got 0.97 ETH via Tornado Cash, as reported by on-chain analytics firm Arkham Intelligence.

The transaction was launched via the ENS domain “reltor.eth,” which communicated with the Tornado Cash Router contract. Blockchain evidence from Etherscan shows that the ETH from Tornado Cash arrived in the wallet connected with BlackRock’s fund around 10:35 a.m. ET on Wednesday morning, several hours before BlackRock’s formal fund announcement.

More About the BlackRock Fund

This occurrence poses serious compliance and legal concerns, especially in light of US Treasury laws. According to the Treasury, any US person or business, including financial institutions, in possession of banned property, such as ETH from Tornado Cash, is required to notify the Treasury’s Office of Foreign Assets Control (OFAC). This underlines the constraints and responsibilities of US financial institutions, particularly with digital assets under regulatory or legal scrutiny.

The unexpected ETH transfer to a BlackRock-affiliated wallet exemplifies the complicated issues of digital asset management in a changing legal environment. It emphasizes the necessity for attention and compliance in digital asset initiatives, especially when they involve sanctioned companies.

Author: Simeon

Simeon is a seasoned crypto writer with a passion for exploring the fascinating world of blockchain and digital currencies. With a background in finance and technology, Simeon brings a unique perspective to his writing, delving into the complexities of decentralized finance, cryptocurrency trading, and emerging blockchain projects.