BanklessTimes
Home News Delaware DoJ Investigates Fake BlackRock XRP Filing

Delaware DoJ Investigates Fake BlackRock XRP Filing

Daniela Kirova
Daniela Kirova
Daniela Kirova
Author:
Daniela Kirova
Writer
Daniela is a writer at Bankless Times, covering the latest news on the cryptocurrency market and blockchain industry. She has over 15 years of experience as a writer, having ghostwritten for several online publications in the financial sector.
November 15th, 2023
  • Anyone can submit a fake company filing - they only need a name and address
  • The application is almost identical to last week's legitimate paperwork from BlackRock

Delaware’s Department of Justice is expected to launch an investigation into Monday’s fake filing for a spot XRP exchange-traded fund (ETF) by asset management giant BlackRock, CoinDesk reported. The institution will have its work cut out for it, as it appears anyone can submit a fake company filing.

Hard to tell real from false

The application for the fund’s launch is mostly identical to last week’s legitimate paperwork from BlackRock for its iShares Ethereum Trust product, which appeared a few hours before the company applied to US regulators for a spot ether ETF last week.

The ripple effect of rumors

In August, the US Securities and Exchange Commission (SEC) was flooded with applications for Ether futures exchange-traded funds (ETFs). Companies submitted 11 Ether-based applications in less than a week, as Banklesstimes.com reported.

The issue has been referred to Delaware’s Department of Justice according to a spokesperson for the state department.

How easy is it to submit a fake filing?

CoinDesk researched into the level of difficulty of filing under a false entity and name and how the process is verified. According to the state’s website, founders of business entities can file by filling out interactive PDF forms, again on the website.

Most significantly, the company has to obtain a registered agent in the State of Delaware. This can be a natural or legal entity that is legally allowed to conduct business in the First State.

However, it would seem all that’s required are its name and address, which are easy to copy. In the XRP case, the “candidate” simply copied and pasted the name of a BlackRock director – Daniel Schwieger – from his LinkedIn profile.

Effect on XRP token price

Before the truth emerged, the fake XRP filing added more than 10% to the token’s value. XRP’s price had been moving sideways as whales moved their tokens. The token peaked at $0.9267 after Ripple won a major lawsuit against the SEC and then retreated to $0.4377. In late October, its price action mirrored that of Bitcoin, which was stuck between $25,000 and $30,000.

Contributors

Daniela Kirova
Writer
Daniela is a writer at Bankless Times, covering the latest news on the cryptocurrency market and blockchain industry. She has over 15 years of experience as a writer, having ghostwritten for several online publications in the financial sector.