Warren Buffett, CEO and chairman of Berkshire Hathaway, by far one of the largest US holding companies in the world, is showing concern that a crypto exchange website is using his name.
Here is the tweet from BitcoinLinux:
“Warren Buffett’s Berkshire Hathaway has issued a statement warning that a #cryptocurrency exchange website is using its name.”
Buffett has never been a big sympathizer of the blockchain world, so he warns users by assuring them that his company has nothing to do with the crypto website.
Warren Buffett and crypto: no affiliation
The Berkshire Hathaway company led by Warren Buffett issued a statement on Friday warning that a cryptocurrency exchange website is using his name.
Berkshire Hathaway stressed that the cryptocurrency company has no affiliation with it or its chairman and CEO, Warren E. Buffett. The statements read:
“It has come to our attention this afternoon that there is an entity using the Berkshire Hathaway name. The entity has no affiliation with Berkshire Hathaway Inc. or its chairman and chief executive officer, Warren E. Buffett.”
Specifically, the landing page of the crypto site in question indicates that the company is a Bitcoin exchange. Details on the front page of the website state:
“Berkshire Hathaway is a Texas-based company created to provide our investors with the opportunity to earn a completely passive income from cryptocurrency mining investments.”
In addition, the site advertises the following slogan:
“You will make profits every day on an ongoing basis.”
What does the CEO of Berkshire Hathaway think about crypto?
The CEO of Berkshire Hathaway, Warren Buffett, and the vice chairman, Charlie Munger, are both skeptical about Bitcoin and cryptocurrencies in general. In fact, Buffett previously stated that crypto is “rat poison squared.”
Even Munger has called Bitcoin “rat poison” and ” contrary to the interest of civilization,” even comparing BTC to venereal diseases. He also recently recommended avoiding Bitcoin as if “it were an open sewer full of harmful organisms.”
Not only that, the Berkshire Hathaway executive believes that governments should ban cryptocurrencies. Thus, everything indicates that this is a “joke” in bad taste, given Buffett’s longstanding skepticism toward the blockchain world.
In any case, definitely a typical scam website, to be avoided at all costs as unfortunately are many others.
Why is the website bearing Warren Buffett’s name a scam and what might it teach us?
The Berkshire Hathaway cryptocurrency exchange website, recently created under Buffett’s name, shows for all intents and purposes many signs of being a scam.
Indeed, the website appears similar to several schemes that Bitcoin.com News had previously warned about, including Bitcoin Revolution, Bitcoin Superstar, Bitcoin Era, and Bitcoin Loophole.
In any case, there are indicators that can immediately provide us with an inkling as to whether some sites, including crypto websites, may allegedly be colossal scams.
For example, as in the case of Berkshire Hathaway, the platform has an upfront cost. In fact, the website lists seven investment plans that cost between $1,000 and $70,000.
Each plan claims to allow users to invest and earn up to a certain amount. The plans also guarantee that users will profit every day on an ongoing basis, showing a list of users who have supposedly made a lot of money using the system.
Therefore, this is an early warning sign. After that, we see that the contact address listed on the Web site belongs to a single-family home and no phone number is listed. Rather, the contact email uses the Web address of Warren Buffett’s Berkshire Hathaway.
This is another factor that surely undermines the site’s credibility. Next, the website claims to be “regulated by several financial authorities,” including the UK’s Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC), and the US Treasury Department’s Financial Crimes Enforcement Network (FinCEN).
However, Berkshire’s crypto website is not listed on any of the lists approved by the above regulators. So how could this be possible?
Sadly, this is not the first time that many regulators around the world are warning that fraudsters increasingly claim to be registered with one of the above regulators, which is obviously not true. However, it is unlikely that funds uploaded to one of these websites will ever show up again.