Charles Hoskinson, Cardano’s founder, has weighed in on the controversy surrounding Ethereum’s connection with the U.S. Securities and Exchange Commission (SEC) and their alleged involvement in a plot against Ripple and XRP. In his X post, Hoskinson points out Ethereum’s early days, noting its modest beginnings with an $18 million initial coin offering (ICO). He further spilled the beans on their personal relationships and undisclosed agreements that may have influenced the SEC’s leniency towards Ethereum in its early stages. However, there is no official clarification on this yet. These discoveries fuel the argument over the SEC’s crypto suppression, as Cardano is also battling with its restrictions.
This raises the question: Is it a conspiracy theory or a significant crypto scandal?
But looking at the bribe rumors, Hoskinson has rejected such claims as Ethereum bribing the SEC to target Ripple and XRP, labeling it as an unfounded conspiracy theory. He pointed out that Ripple operated in a different smart contract space and was not a direct competitor to Ethereum.
Hence, the whole controversy began when Steven Nerayoff claimed that a false case was constructed against him due to his knowledge of Ethereum’s ICO. He alleged that individuals associated with the SEC, the Department of Justice, the FBI, and even Ripple were involved in this supposed plot. Nerayoff ultimately won his legal battle.
In response, Nerayoff’s lawyer said that he aims to reveal what he knows the right way, putting justice and the public’s interest first.
Controversy Heightened by Hinman’s Mail Exchange
Notably, John Deaton has given it another angle as he highlighted an email exchange between Bill Hinman and Joseph Lubin, stressing the close tie between a regulatory figure and prominent key officials in the crypto space. Somehow this connection has raised concerns about potential favoritism towards Ethereum within the SEC, particularly since Jay Clayton, the former SEC Chairman, was previously a partner at the law firm Sullivan & Cromwell, where Hinman also worked. For one more reason, this mail exchange is important, as Hinman later publicly stated that Ethereum is not a security, despite warnings from the SEC’s Office of General Counsel.