Former Ethereum advisor Steven Nerayoff slammed Ethereum in a shocking move. In his statements, Nerayoff claimed that ETH is truly a security. Additionally, Nerayoff accused Ethereum of being centralized since its inception in a series of scathing articles published on X. Moreover, it claimed to be a security since its first cryptocurrency offering (ICO).
Harsh criticism from former Ethereum consultant!
Steven Nerayoff’s statements come amid an ongoing legal battle between Joseph Lubin’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. The former Ethereum advisor called this a move to “cover up” previous secret dealings. In one of his posts, Nerayoff made the following accusations:
It is an undeniable fact that Ethereum is centralized and has been a security since the ICO. This move is meant to distract people from the truth and create another cover-up.
Moreover, Nerayoff accused Ethereum of committing “massive securities fraud” through speculative ICO purchases and undisclosed whale holdings.
Steven Nerayoff: Joseph Lubin and Vitalik Buterin are frauds!
The former advisor also drew attention to important names such as Joseph Lubin and Vitalik Buterin, who are among the leadership team of Ethereum. Nerayoff claimed that these people were involved in fraudulent activities. Nerayoff pointed to significant purchases Lubin made during the ICO as evidence of securities fraud, a claim supported by SEC Chairman Gary Gensler’s claim that Lubin purchased 9.5% of the ICO.
In addition, Nerayoff alleged collusion between Ethereum and the SEC. He cited a meeting between Lubin and former SEC official Bill Hinman before the latter’s speech declaring that Ethereum was not a security. According to Nerayoff, this coordinated effort was intended to hide the true centralized nature of Ethereum. Additionally, this effort contradicted claims of decentralization.
Steven Nerayoff attributes XRP’s legal troubles to ETH
Moreover, Nerayoff surprisingly linked Ethereum’s controversy to the ongoing SEC case against Ripple. He suggested a broader conspiracy to monopolize the crypto market. In addition, he accused the SEC of bias against Ripple. Thus, he echoed the sentiments of the XRP community by targeting Ethereum’s only rival. “The XRP case exposed collusion between the SEC, FBI, DOJ and other major agencies to monopolize the crypto market,” Nerayoff said. He also called for Ripple to be exonerated and held accountable for Ethereum’s alleged misuse.
Nerayoff’s allegations have reignited scrutiny over Ethereum’s regulatory status. Moreover, it has raised questions about the SEC’s handling of crypto enforcement. As the legal battle between Consensys and the SEC continues, the community awaits clarity on Ethereum’s regulatory status.
Consensys files lawsuit against US SEC over Ethereum
cryptokoin.comAs you follow from, the SEC is postponing Ethereum ETF requests. Therefore, Consensys claims that the SEC overstepped its authority in trying to regulate Ethereum. In this regard, he filed a lawsuit against the SEC. The lawsuit accuses the SEC of illegally targeting Ethereum regulation through enforcement actions against various companies, including Consensys. This constitutes an “aggressive and illegal” violation.
Consensys claims that the SEC has no legal authority to regulate ETH, its user-controlled software interface, or the Ethereum Blockchain more broadly. Consensys wants the court to rule that Ethereum is not a security. It also requires the court to declare that legal action or investigation would exceed the SEC’s authority
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