Is ETH really a security? Ex-Ethereum advisor slams SEC’s move

• Nerayoff’s allegations against Ethereum add weight to its legal battle with the SEC. 
• Skepticism over fairness in SEC’s handling of Ethereum and Ripple, emphasizes transparency urgency.

In an unexpected turn of events, Ethereum [ETH] has come into the limelight once again, this time over its status as a security.

Central to the issue is Joseph Lubin’s Consensys lawsuit, aimed at preventing Ethereum from being classified as a security. Taking to X, Joseph Lubin said,

“We are suing the SEC and fighting back against its overzealous regulatory overreach.” 

The unexpected twist 

However, what’s more interesting is the involvement of Steven Nerayoff, a former Ethereum advisor. Sparking increased speculation and interest in the ongoing legal battle, Nerayoff took to X (formerly Twitter) and noted, 

“It is evident that today’s update is a well-planned tactic executed by @Consensys @ethereumJoseph @SECGov. 

He added, 

“Their intention is to create a state of uncertainty in the situation and conceal their collaboration by pretending to be against each other. However, their actions are not sly enough, and we see through their every move.”

This underscores the complexity of the situation and raises questions about transparency and integrity within the cryptocurrency ecosystem. 

What’s more to it? 

Additionally, showcasing his strong belief that Ethereum has operated as a centralized entity since its ICO and should be classified as a security, Nerayoff noted, 

“This move is to distract people from the truth and just another cover-up.”

Needless to say, he further claimed, 

“The speculative ICO purchases and hidden whales are clear signs of major securities fraud that cannot be ignored.” 

This highlighted Joseph Lubin’s substantial acquisitions during the ICO, alleging securities fraud. And, it gained weight with SEC Chair Gary Gensler’s disclosure that Lubin obtained 9.5% of the ICO.

This paints a skeptical view of justice being served, with concerns that the SEC may be too closely aligned with Ethereum to act impartially. 

His mention of Bill Hinman, a former SEC official, potentially fleeing to a non-extradition country suggests suspicions of high-level collusion and corruption within regulatory bodies. 

Additionally, he also sheds light on prominent figures within Ethereum’s leadership, such as Joseph Lubin and Vitalik Buterin, accusing them of participating in fraudulent behavior.

Connection with Ripple 

In an unexpected turn, Nerayoff also linked Ethereum’s legal issues and the SEC’s Ripple [XRP] case revealing a tangled situation. 

“And a special shout-out to the XRP Army who has stood their ground and is overcoming the government’s wrongful targeting of @Ripple.”

This revelation raises profound questions about power dynamics within the crypto sphere, highlighting the critical need for fairness and transparency.