In a stunning legal development, former BlackRock executive Hamdan Azhar has filed a whistleblower lawsuit against the world’s largest asset manager, alleging corruption, conflicts of interest, retaliation, and a hidden agenda to control Bitcoin. The lawsuit, filed in the Supreme Court of New York, presents a detailed narrative of alleged corporate misconduct and retaliatory actions taken against Azhar after he exposed internal wrongdoing.

A Rising Star Turned Whistleblower

Azhar, a seasoned data scientist and technologist with over 14 years of experience, who is co-founder of Bitcoin Center NYC, was hired by BlackRock in February 2020 as Vice President and Head of Data Science for Global Marketing. According to the complaint, Azhar was quickly recognized as an innovative leader, creating a proprietary search engine called Trend Spotter, which analyzed decades of client conversations. His work received accolades from BlackRock’s leadership, with the company’s COO even referring to him as a “rising star.”

However, things took a turn when Azhar discovered and reported alleged self-dealing and corporate fraud within BlackRock’s operations. His lawsuit alleges that the company’s internal processes were manipulated to award a $2 million contract to Rightpoint, a consulting firm where the husband of Azhar’s then-manager, Dr. Tiffany Perkins-Munn, was a senior executive.

Allegations of Self-Dealing and Corruption

Azhar claims that Perkins-Munn and fellow executive Riaz Hakkim expedited the Rightpoint contract under dubious circumstances, leveraging BlackRock’s ESG (Environmental, Social, and Governance) and DEI (Diversity, Equity, and Inclusion) priorities to justify their decision. He further alleges that Rightpoint was unqualified for the contract and that competing firms offering superior proposals were disregarded.

According to the lawsuit, Rightpoint’s engagement resulted in the development of a reporting dashboard called ONYX, which was widely criticized within BlackRock as ineffective and unreliable. Azhar’s repeated concerns about the integrity of the contract and the quality of Rightpoint’s work were ignored, and he was ultimately directed to work closely with Rightpoint to integrate his own projects into their platform—an order he refused upon learning about the undisclosed conflict of interest involving Perkins-Munn’s husband.

Retaliation and Termination

After Azhar voiced his concerns, he alleges that he became the target of a campaign of retaliation spearheaded by Hakkim. His responsibilities were curtailed, he was falsely accused of performance issues, and he was ultimately terminated on May 18, 2022—just days before he was set to assume a new role as Head of Strategy for BlackRock AI Labs.

The lawsuit asserts that the reason given for Azhar’s termination—a complaint from Rightpoint—was a pretext to silence him and prevent him from exposing further misconduct. Notably, Azhar was allegedly denied access to the complaint and was not given an opportunity to respond before his abrupt dismissal. Furthermore, Hamdan, a true decentralist, believed that Bitcoin should not be homogeneous with the centralized banking system.

BlackRock’s Alleged Secret Bitcoin Strategy

Beyond allegations of corporate fraud and retaliation, the lawsuit delves into BlackRock’s evolving stance on Bitcoin. The firm, which publicly downplayed Bitcoin for years, has since positioned itself as a dominant player in the digital asset space. Azhar, an early Bitcoin advocate and co-founder of Bitcoin Center NYC, claims that BlackRock’s Bitcoin strategy is designed to manipulate the cryptocurrency and dominate it rather than support its decentralized ethos.

According to the lawsuit, BlackRock’s SEC filings for its Bitcoin ETF include a clause that allows the firm to unilaterally determine which version of Bitcoin is “generally accepted” in the event of a fork. Given BlackRock’s significant Bitcoin holdings—estimated at nearly 3% of all Bitcoin—this clause could grant the firm outsized influence over the cryptocurrency’s future, raising concerns about potential centralization.

Azhar’s lawsuit warns that BlackRock’s control over Bitcoin could pose a national security risk, particularly in light of President Trump’s proposal for a Strategic Bitcoin Reserve. The complaint alleges that BlackRock’s maneuvering could undermine Bitcoin’s role as a decentralized asset, transforming it into a tool controlled by institutional investors. If a SBR is established, the US government could be inadvertently aiding and abetting in the centralization of the Bitcoin, a condition that would severely hurt taxpayers.

Legal Ramifications and Industry Implications

The lawsuit seeks damages of at least $10 million for lost wages, reputational harm, and emotional distress, as well as punitive damages for what Azhar describes as a willful and malicious campaign of retaliation. The case also highlights broader concerns about corporate governance at BlackRock, particularly its use of ESG and DEI principles as a cover for alleged self-enrichment.

With Congress already scrutinizing BlackRock’s investments in Chinese military-linked companies and state attorneys general investigating its ESG practices, the allegations in Azhar’s lawsuit could fuel further regulatory scrutiny. The case also raises critical questions about corporate influence over Bitcoin and the potential for institutional actors to shape the cryptocurrency’s future in ways that contradict its foundational principles.

Subhan Tariq, counsel to Mr. Azhar stated:

“This case highlights serious concerns about BlackRock’s corporate practices—misleading investors, suppressing internal dissent, and exerting quiet influence over Bitcoin’s future. My client was terminated after raising red flags about self-dealing in ESG contracts and as he gained deeper insight into BlackRock’s Bitcoin strategy. While BlackRock publicly downplayed Bitcoin, internally they were positioning themselves to shape its future. Their ETF filings include language that could allow them to influence which version of Bitcoin is recognized, raising questions about market manipulation and decentralization. This lawsuit is about exposing corporate misconduct, ensuring transparency, and holding financial giants accountable for their actions.”

As the legal battle unfolds, the case could have far-reaching implications for BlackRock, the asset management industry, and the broader cryptocurrency ecosystem. If Azhar’s claims hold up in court, they could expose systemic issues within one of the most powerful financial institutions in the world and reshape the conversation around corporate accountability, whistleblower protections, and Bitcoin’s long-term viability as a decentralized financial asset.

The question remains as to why a group of decentralists would cheer for Bitcoin adoption by the same system they protested against on January 3, 2009.

Media Contact: Todd Shapiro Associates Public Relations