- The Delaware Department of Justice is investigating this week’s fraudulent BlackRock XRP ETF listing
- A filing on Delaware’s official site under BlackRock’s name caused XRP to surge 13%
- The investigation will aim to determine how the false filing occurred
The fraudulent listing of a Blackrock XRP ETF this week is to be investigated by the Delaware Department of Justice, suggesting that it could have had a criminal intent. On Monday, a filing appeared on Delaware’s official registration site in Blackrock’s name for a fund named the “iShares XRP Trust,” which is the first step towards a full spot ETF application. This caused XRP to pump 13% before giving back all its gains after it was revealed to be fake, as many in the crypto space suggested. However, an investigation is now underway as to how the filing could have been filed in the first place.
Was it Even Legal?
It wasn’t immediately clear how an XRP filing purporting to come from BlackRock had shown up on the official Delaware investment trust website, with ETF expert Eric Balchunas stating that “Some whacko must have added using BlackRock executive name etc.” When asked how such an event was legal, Balchunas replied that he wasn’t sure but that it certainly isn’t an easy process:
I don’t know.. I don’t know the requirements to get a name on there like that. I would think it’s more rigourous then filing out a form but this is a first for me.
— Eric Balchunas (@EricBalchunas) November 14, 2023
We may soon get the answer, however, with Bloomberg reporting that the matter has been handed to the Delaware Department of Justice, suggesting that someone may have opened a heavily leveraged position on XRP and managed to manipulate the Delaware register to ensure a pump in the price.
Coincidentally, the occurrence came just after Ripple Chief Executive Officer Brad Garlinghouse had warned followers on X to be wary of “deepfake scam videos” doing the rounds about Ripple, which had seen an uptick in recent weeks.
