Delaware’s Faux Filing Fiasco: How a Fake XRP Trust Caused Chaos

Introduction to the XRP Rollercoaster

On November 13, a wild news item crept up on the crypto world: a phony filing that claimed BlackRock had submitted an application for an “iShares XRP Trust” in Delaware’s Division of Corporations. Within moments, this fib triggered a spike in the value of XRP, leading unsuspecting investors on a brief thrill ride before they came crashing back down to earth.

What Happened?

Just one day after the fraudulent filing, a spokesperson from the Delaware Department of State confirmed that they would refer the matter to the Delaware Department of Justice. Talk about a classic case of a little too much smoke and mirrors! The statement was brief but to the point: “Our only comment is that this matter has been referred to the Delaware Department of Justice.” If only that spokesperson could’ve added, “And we recommend the popcorn!”

Market Mayhem: The Ripple Effect

Here’s where it gets juicy. The bogus registration caused XRP’s price to spike roughly 12%. Just picture the poor souls glued to their screens as their portfolios briefly soared, only to plummet again when the truth unraveled like a bad magic trick. Investors thought they had just hit the crypto jackpot – turns out they were just another victim of a financial sleight of hand.

The Sneaky Suspects

Here’s the kicker: the seasoned pranksters behind the fake trust allegedly used the name of BlackRock’s managing director, Daniel Schwieger, to execute their elaborate ruse. This raises all sorts of red flags and questions about whether any XRP transactions might be tangled in this potential web of fraud. Who knew that the world of finance could feel more like the plot of a suspense thriller?

The Bigger Picture: Crypto Regulations

The fiasco also left many speculative minds pondering the possibilities – did this false filing mean BlackRock had plans for an XRP-linked exchange-traded fund (ETF)? Such a move would be monumental, signaling a significant break in crypto’s regulatory barriers. But, spoiler alert: as of now, the U.S. Securities and Exchange Commission has yet to approve any spot crypto ETF listings. So it appears that while the dreamers dream, the regulators are sticking with their coffee and wait-and-see approach.

Conclusion: What Lies Ahead

As the dust settles and the Justice Department sorts through this mess, the crypto community waits with bated breath. Will there be repercussions? Will the truth behind the tricksters come to light? Only time will tell. Meanwhile, investors might want to keep their crypto apps close and beware of any further “wonders” popping out of Delaware’s Division of Corporations!