iShares XRP Trust: Delaware Department of Justice Investigates Fake BlackRock XRP Filing

The post iShares XRP Trust: Delaware Department of Justice Investigates Fake BlackRock XRP Filing appeared first on Coinpedia Fintech News

In a startling revelation, it has come to light that recent filings attributed to BlackRock, the world’s largest asset manager, regarding the launch of a spot XRP ETF were, in fact, fraudulent. This news has sent shockwaves through the cryptocurrency community, which had initially excitedly greeted the announcement.

The Fake Filing Incident

The bogus filing, which surfaced on the Delaware Department of State’s Division of Corporations website around 2:30 p.m. ET, closely resembles BlackRock’s legitimate paperwork filed last week for its iShares Ethereum Trust product. The matter has now been escalated to the Delaware Department of Justice for investigation. A BlackRock spokesperson confirmed the referral but declined to comment further. The Department of Justice has yet to respond to requests for comment.

Concerns Over Verification Processes

This incident has raised serious questions about the verification processes for Trust filings. The ease with which the name and address from a genuine filing – in this case, belonging to Daniel Schwieger, a managing director at BlackRock – can be replicated is particularly alarming. Delaware’s website lists seven steps to form a new business entity, including the need for a registered agent in the state, but this incident suggests vulnerabilities in the system.

Impact on Cryptocurrency Markets

The fake XRP ETF filing led to a dramatic surge in the price of XRP, which climbed as high as 13% late on Monday before paring some of those gains. By early Tuesday, XRP was trading around $0.66, reflecting a modest increase.

This incident follows a similar pattern to another recent event where a fraudulent report claimed that the Securities and Exchange Commission had approved BlackRock’s proposal for a spot Bitcoin ETF. This also led to a temporary spike in Bitcoin’s price.

Looking Forward

As the cryptocurrency market reacts to these developments, the focus now shifts to the investigation by the Delaware Department of Justice. The crypto community and investors await further details on how such a significant oversight occurred and what measures will be implemented to prevent similar incidents.