A lawyer known for supporting XRP, John E Deaton, recently hinted at the existence of potentially damaging information about ETH Gate. This comes in response to tweets from Steven Nerayoff, an early adviser to the Ethereum network, who had criminal extortion charges against him dismissed in May. Deaton expressed his belief that the truth will eventually come out, bringing them one day closer to it.
ETH Gate refers to the theory that Ethereum received preferential treatment from US regulators while other digital assets like XRP faced regulatory scrutiny. The Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs, the parent company of XRP, for conducting an unregistered digital asset securities offering.
XRP Army Hopeful: Will ETH Gate Finally Be Exposed?
In previous tweets, Deaton reiterated allegations he previously discussed in an article, alleging that Ethereum received favoritism from the SEC due to conflicts of interest involving William Hinman, the former Director of the SEC’s Division of Corporation Finance.
Nerayoff’s tweets also questioned the legitimacy of the regulatory pass granted to Ethereum. He highlighted the role of various officials in potentially helping Ethereum bypass regulatory scrutiny. Deaton believes Nerayoff could provide valuable insider information about this matter.
Nerayoff’s legal battle, which he won in May, raised eyebrows as it concluded with the dismissal of extortion charges against him. His lawyers claimed that he was a victim of an elaborate setup aimed at obtaining evidence against prominent figures in the crypto industry. This dismissal could suggest that Nerayoff possesses incriminating information about US authorities, possibly relating to the Ethereum regulatory pass.
Charles Hoskinson, one of Ethereum’s founders and the founder of Cardano, weighed in on the issue. He acknowledged that personal relationships might have influenced regulatory decisions but dismissed the idea of Ethereum actively bribing the SEC to go after Ripple.
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