Could the Delaware Department of Justice be delving into a bogus submission that hinted at the eminent launch of a spot XRP exchange-traded fund (ETF) by financial behemoth BlackRock (BLK)? This fake BlackRock XRP filing, which was still visible on the Delaware Department of State’s Division of Corporations website as of Tuesday afternoon, is strikingly similar to the legitimate paperwork BlackRock submitted last week for its iShares Ethereum Trust product.
Unraveling the Misleading Filing
This authentic filing was made public mere hours before BlackRock applied to U.S regulators for a spot ether ETF. The deceptive XRP filing swiftly boosted the token’s value by over 10% before a BlackRock representative clarified to CoinDesk that the company had no plans to initiate such a fund.
A representative from the Delaware Department of State later confirmed to CoinDesk that the issue had been forwarded to the state’s Department of Justice. However, a spokesperson for the Department of Justice did not immediately respond to a request for comment.
Examining the Ease of Fraudulent Filings
This incident has sparked queries about the ease with which a Trust can be filed under a false name and entity, and the verification process that follows. As per the Delaware website, there are seven steps to establish a new business entity, all of which can seemingly be completed by filling out interactive PDF forms on the website.
The most critical requirement appears to be the need for an entity to secure a registered agent in the State of Delaware, who can either be a resident or a business entity legally authorized to operate in the state. Yet, it seems that if only the name and address are required, these could easily be replicated from another filing.
The Impersonator’s Modus Operandi
In this instance, the impersonator seemed to do nothing more than copy/paste the registered agent – Daniel Schwieger, a managing director at BlackRock according to his LinkedIn profile – from the legitimate filing. This raises serious concerns about the ease of committing such fraudulent acts and the need for more robust verification processes.
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