The Securities and Exchange Commission (SEC) has charged WisdomTree, a popular ETF issuer, with making false statements and failing to comply with its own investment criteria. The SEC alleges that WisdomTree misrepresented three of its ESG-marketed ETFs by claiming they would not invest in fossil fuels and tobacco, when in fact they did. WisdomTree relied on flawed data from third-party vendors and lacked proper policies to ensure compliance. The company has agreed to a cease-and-desist order, censure, and a $4 million civil penalty. This enforcement action highlights the SEC's efforts to combat "greenwashing" in the ESG investment sector. WisdomTree also has a Bitcoin ETF and has issued cryptocurrency instruments globally since 2019.



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