BlackRock is the victim of an “astonishing” $500 million fraud

The private credit unit of BlackRock, the world’s largest asset manager, was exposed to a massive financial fraud worth more than half a billion dollars, in what is considered one of the most serious and largest frauds that the global private credit sector has witnessed in recent years.

The main accused and his fraudulent scheme

According to media reports, Indian businessman Bankim Brahmbhatt orchestrated an elaborate and complex fraud through his telecom financing company, Cariox Capital. The plan involved providing fake assets and guarantees to obtain huge loans from global financial institutions.

Fraud mechanism

The company used fraudulent receivables as collateral to obtain hundreds of millions of dollars in loans from major financial institutions, led by BlackRock’s private credit arm and BNP Paribas, and the fraud was hidden for years through fictitious payments and circular transactions.

Schema exposure

The discrepancies surfaced during routine checks, and by August 2025, Cariaux Capital and its associated borrowers officially declared bankruptcy. Shortly thereafter, Brahmbhatt declared personal bankruptcy, causing the entire fraudulent system to collapse.

Financing details

I started a company HPS The BlackRock subsidiary provided lending to Brahmbhatt projects in 2020, expanding to $385 million in 2021, then $430 million in 2024.

Detection of forgery

The case began after irregularities were discovered in email addresses linked to Cariox customers, and it was found that there were messages from fake domains impersonating real telecommunications companies.