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The original was posted on /r/cryptocurrency by /u/After_Sock_3550 on 2023-11-05 14:37:29.

Original Title: As an example that TradFi entering crypto isn’t all sunshine and rainbows, just last week BlackRock was charged by the SEC with not to properly disclosing investments in a firm for 4 years. It also “misrepresented”(inflated) investment returns from the company to investors.

This is just a reminder for those who are super hyped by the prospect of an ETF that with big firms from traditional finance entering the space we are going to have a bunch of the issues that allow plague traditional finance.

Just a week ago the SEC charged BlackRock with “Failing to Properly Disclose Investments by Publicly Traded Fund it Advised”. Basically, BlackRock invested in a lending company and on the report to investors it inaccurately described the nature of this company, potentially misleading investors. On top of this, it inaccurately stated that interest returns from the company to be higher than it actually was.

Now this isn’t by any means a huge smoking gun but I think we all know how terrible accounting fraud, insider trading and networks, biased service to the rich etc is that plagues TradFi. People are blinded by the pump and few take notice that we are going to have more issues to deal with in crypto when these TradFi firms come in. We may, though I hope not, find out that all this pumps from big institutional money come with major downsides.