"Hmm, it seems that this time the SEC's actions were correct, because BlackRock did something wrong, right?"
The Securities and Exchange Commission (SEC) charged BlackRock with overseeing more than $9.43 trillion in assets and inaccurately reporting high interest rates on its investment in Aviron Group, a film production company.
From 2015 to 2019, the investment giant firm involved with Aviron had financed one to two films per year, but the interest rates on those efforts were found to be falsely inflated.
According to Andrew Dean, Co-Chief of the Asset Management Unit of the SEC's Enforcement Division said that investors rely heavily on such details to make any important decisions.
However, BlackRock providing false data has not only misled stakeholders but also violated the public's trust in an increasingly familiar investment relationship.
Responding to the charges, BlackRock agreed to a cease-and-desist order and accepted a $2.5 million penalty.
In addition to being sued by the SEC, BlackRock was also pressured when its firm's BTC ETFs including the iShares Bitcoin Trust were removed from the DTCC website for several hours, but have now reappeared.
There is no denying that the crypto market has recently seen a significant rise when there were rumors that the spot BTC ETF would be approved soon, however the sudden delisting made investors less confident.
