Ex-Ethereum Advisor Reaffirms ETH Is A Security Amid Consensys Vs SEC Lawsuit

In a bold move, former Ethereum advisor Steven Nerayoff has reaffirmed that Ethereum (ETH) is indeed a security. In a series of scathing posts on social media platform X, Nerayoff accused Ethereum of being centralized since its inception. Moreover, he alleged that it has operated as a security since its initial coin offering (ICO).

Ex-Ethereum Advisor Reacts To Consensys Vs SEC Lawsuit

Nerayoff’s affirmation comes amidst 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 labeled it as a move to “cover up” prior collusion.

In one of his posts, Nerayoff declared, “It’s an undeniable fact that Ethereum is centralized and has been a security since the ICO. This move is to distract people from the truth and just another cover-up.” Moreover, he further accused Ethereum of engaging in “major securities fraud” through speculative ICO purchases and undisclosed whale holdings.

Furthermore, the former advisor also spotlighted key figures within Ethereum’s leadership, including Joseph Lubin and Vitalik Buterin, alleging their involvement in fraudulent activities. Nerayoff pointed to Lubin’s significant purchases during the ICO as evidence of securities fraud, a claim supported by SEC Chair Gary Gensler’s assertion that Lubin acquired 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 prior to the latter’s speech declaring Ethereum not a security. According to Nerayoff, this coordinated effort aimed to conceal Ethereum’s true centralized nature, contradicting claims of decentralization.

Also Read: Breaking: Consensys Fights for Ethereum, Sues SEC to Block Regulation

Steven Nerayoff Connects XRP’s Legal Woes To ETH

Furthermore, in a surprising twist, Nerayoff linked Ethereum’s controversy to the ongoing SEC case against Ripple. He suggested a broader conspiracy to monopolize the crypto market. Additionally, he accused the SEC of biased treatment towards Ripple while targeting Ethereum’s only competition, echoing sentiments from the XRP community.

“The XRP case has exposed the collusion between the SEC, FBI, DOJ, and other big entities to monopolize the crypto market,” Nerayoff asserted. Furthermore, he called for Ripple to be exonerated and Ethereum to be held accountable for its alleged misconduct.

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 unfolds, the community awaits clarity on Ethereum’s regulatory status.

Also Read: Ethereum Price Analysis: Will ETH ETF Denial Jitters Trigger Sell-Off To $2,500?