XRP Fake ETF Filing: Delaware Takes Down and Culprit Outcome

XRP Fake ETF Filing: Delaware Takes Down and Culprit Outcome

The U.S. Delaware state government has eliminated the simulated BlackRock iShares XRP Trust previously spotted on its corporation portal. 

XRP Fake Filling Missing

Fake XRP record; Missing

The presence of a counterfeit XRP ETF filing on Delaware’s official site caused a stir in the crypto community, sparking debates about its legitimacy. However, the deletion of the iShares XRP Trust from Delaware’s ICIS website confirms its fraudulent nature, putting an end to speculations.

It’s worth noting that this removal, which occurred at least 24 hours after its appearance, lacks direct commentary from BlackRock regarding the XRP ETF filing. Despite the absence of official statements, a BlackRock-affiliated news source clarified that the iShares XRP Trust was indeed a sham.

Also read:XRP Lawyer Criticizes US Rep for Not Subpoenaing SEC Chair

Additionally, the BlackRock affiliate disclosed that the matter was reported to state authorities, with Delaware officials reaching out to the state’s Department of Justice concerning the fake submission. While specifics about the culprits remain undisclosed, the removal aligns with ongoing investigations into the incident.

Potential Criminal Charges 

Filing a fraudulent exchange-traded fund (ETF) in the U.S. carries serious legal consequences. Offenders may face criminal charges such as Wire Fraud, centered on electronically submitting false information. Securities Fraud charges are also possible for knowingly providing inaccurate details about securities, including ETFs. 

Importantly, making false statements to government agencies is a punishable offense in its own right. Those convicted under the False Statements code could potentially receive a maximum sentence of five years or a $10,000 fine. Similarly, the securities fraud offense carries a comparable prison sentence and a $250,000 fine.

Also read: Scammers Utilize Deep Fake Technology to Simulate Ripple CEO in Fraudulent XRP Giveaway

Previous Incidence

Notably, submitting fraudulent crypto ETFs is not novel in the crypto sphere. In 2021, individuals posing as Grayscale attempted to submit a fraudulent ETF through the Delaware Corporation website. Nevertheless, the ruse was promptly exposed and discredited.

However, representatives from the Delaware Division of Corporations failed to disclose any identifying information regarding the entities behind the filing, as the documents lacked personal information.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.

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