Delaware Refers Fake XRP ETF Filing to Department of Justice
A false filing submitted to the State of Delaware’s Division of Corporations on Nov. 13 has been forwarded to the Delaware Department of Justice, according to a spokesperson for the Delaware Dept of State. The department did not disclose what actions it may take in response to the referral. The fake filing used the name of BlackRock managing director Daniel Schwieger to register the trust, potentially involving XRP transactions and constituting fraud.
The fraudulent XRP trust filing suggested that BlackRock might have been preparing to launch an XRP-linked exchange-traded fund (ETF) in the United States, a significant development for the crypto industry. While BlackRock registered an Ether (ETH) trust in Delaware on Nov. 9, the U.S. Securities and Exchange Commission has not yet approved any spot crypto ETF listings.
Hot Take: Potential Implications for Crypto Industry
The fake filing of an XRP ETF by using a prominent financial figure’s name raises concerns about potential fraud and misrepresentation in the crypto space. This incident also highlights the eagerness within the industry for major financial institutions like BlackRock to enter the cryptocurrency market with innovative products such as ETFs. However, it also underscores the need for robust regulatory oversight and due diligence to prevent fraudulent activities and protect investors from potential harm.
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