Former Ethereum Advisor Steven Nerayoff Affirms Ethereum (ETH) as a Security Amidst Legal Battle

In a shocking turn of events, former Ethereum advisor Steven Nerayoff has made bold claims regarding Ethereum (ETH) being a security. Nerayoff took to social media platform X to accuse Ethereum of being centralized since its inception and operating as a security from its initial coin offering (ICO).

Nerayoff’s statements come amidst a heated 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 classified as a security, but Nerayoff labeled it as an attempt to hide previous collusion.

The former advisor didn’t hold back, stating, “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.” He also accused Ethereum of engaging in securities fraud through speculative ICO purchases and undisclosed whale holdings.

Nerayoff didn’t stop there, pointing fingers at key figures within Ethereum’s leadership, including Joseph Lubin and Vitalik Buterin, alleging their involvement in fraudulent activities. He highlighted Lubin’s significant ICO purchases as evidence of securities fraud, a claim supported by SEC Chair Gary Gensler’s statement that Lubin acquired 9.5% of the ICO.

Moreover, Nerayoff alleged collusion between Ethereum and the SEC, citing a meeting between Lubin and former SEC official Bill Hinman before the latter’s speech declaring Ethereum not a security. According to Nerayoff, this coordinated effort aimed to conceal Ethereum’s centralized nature, contradicting claims of decentralization.

In a surprising twist, Nerayoff connected Ethereum’s legal troubles to the ongoing SEC case against Ripple, suggesting a broader conspiracy to monopolize the crypto market. He accused the SEC of biased treatment towards Ripple while targeting Ethereum’s only competition, echoing sentiments from the XRP community.

Nerayoff’s allegations have sparked renewed interest in Ethereum’s regulatory status and raised questions about the SEC’s approach to crypto enforcement. As the legal battle between Consensys and the SEC unfolds, the community eagerly awaits clarity on Ethereum’s regulatory standing.