In a bold move, former Ethereum advisor Steven Nelayoff reaffirmed that Ethereum (ETH) is indeed a security. In a series of scathing posts on social media platform It further claimed that it has been operated as a security since its initial coin offering (ICO).
Former Ethereum advisor reacts to Consensus vs. SEC lawsuit
Nereyoff's affirmation comes amid an ongoing legal battle between Joseph Rubin's ConsenSys and the U.S. Securities and Exchange Commission (SEC). The lawsuit, filed by ConsenSys, aims to prevent Ethereum from being declared a security. A former Ethereum advisor labeled this a move to “cover up” previous collusion.
“It is an undeniable fact that Ethereum is centrally controlled and has been a security since the ICO,” Nereyoff declared in one of his posts. This move is to distract people from the truth and is just a cover-up. ” He further accused Ethereum of engaging in “massive securities fraud” through speculative ICO purchases and undisclosed whale holdings.
Additionally, the former advisor highlighted key figures in Ethereum's leadership, including Joseph Rubin and Vitalik Buterin, who allege involvement in the fraud. Mr. Neleyoff pointed to Mr. Rubin's large purchases during the ICO as evidence of securities fraud, but this claim was contradicted by SEC Chairman Gary Gensler, who said Mr. Rubin acquired 9.5% of the ICO. This is supported by his assertion.
Additionally, Nereyoff alleged collusion between Ethereum and the SEC. He cited a meeting between Rubin and former SEC official Bill Hinman prior to his speech declaring that Ethereum is not a security. According to Nerayoff, this concerted effort is aimed at hiding Ethereum’s true centralized nature and contradicts its decentralization claims.
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Steven Nereyoff links XRP legal issues to ETH
Additionally, in a surprising twist, Nereyoff linked the Ethereum controversy to the ongoing SEC lawsuit against Ripple. He hinted at a broader conspiracy to monopolize the cryptocurrency market. Additionally, he echoed the sentiments of the XRP community, accusing the SEC of biased treatment of Ripple while targeting Ethereum's only competitor.
“The XRP incident exposed collusion between the SEC, FBI, Department of Justice, and other major organizations to monopolize the cryptocurrency market,” Nereyoff argued. Additionally, he called for Ripple to be exonerated and for Ethereum to be held accountable for its alleged wrongdoing.
Nereyov's claims have reignited scrutiny of Ethereum's regulatory status. Additionally, questions have been raised about the SEC's response to cryptocurrency enforcement. As the legal battle between Consensys and the SEC unfolds, the community awaits clarity on Ethereum's regulatory status.
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