Steven Nerayoff, a former advisor to Ethereum, has launched serious allegations against Gary Gensler, the Chair of the US Securities and Exchange Commission (SEC), accusing him of undisclosed involvement with ETH amidst the anticipation of an Ethereum Exchange-Traded Fund (ETF). Via a statement on X, Nerayoff’s remarks have reignited concerns around “ETH Gate,” suggesting Gensler’s actions reflect a deeper engagement with Ethereum and its regulatory status than openly acknowledged.
The Alleged Ethereum, Gensler, CCP Connection
Nerayoff alleged, “With growing speculation around an Ethereum ETF, it’s evident that the SEC, led by Gary Gensler, is more involved in ETH than it appears.” He specifically accused Gensler of “indirect approval for Prometheum Inc to designate ETH as a security effectively endorsing an ETF covertly.” These claims intertwine with suggestions of influence from the Chinese Communist Party (CCP), hinting at a complex interplay of interests affecting Ethereum’s regulatory journey.
With growing speculation around an Ethereum ETF, it’s evident that the SEC, led by Gary Gensler, is more involved in ETH than it appears. Gensler’s indirect approval for @PrometheumInc to designate ETH as a security effectively endorses an ETF covertly.
This decision shows that… pic.twitter.com/i0TVEdLDfq
— Steven Nerayoff (@StevenNerayoff) February 12, 2024
He concludes, “This decision shows that Gensler’s actions are under heavy influence by the CCP, prompting questions about the consequences of alternative actions. For Gensler, Lubin, and Vitalik, the stakes go beyond investor interests; their decisions have steered them onto an irreversible course.”
Highlighting potential personal risks for Gensler and the Ethereum founders, Nerayoff also claimed, “Something tells me a jail cell isn’t all he fears,” suggesting the stakes extend far beyond regulatory repercussions.
Amidst community speculation on the CCP’s investment in Ethereum, Nerayoff responded, “Exactly! It’s been a long time coming; there’s no way they’ll let all their efforts go to waste.” This dialogue raises alarms over the centralization of Ethereum and potential CCP control, with Nerayoff cautioning, “If the SEC classifies ETH as a security, they should at least make it clear that you’re investing not just in a currency, but in a centralized asset controlled by the CCP.”
As reported by Bitcoinist a few days ago, Nerayoff thinks that the Chinese CCP is deeply involved in Ethereum. Based on on-chain research by TruthLabs (@BoringSleuth), he claims that the CCP is controlling approximately 66.6% of ETH supply. If verified, such a claim could challenge Ethereum’s decentralization and security perceptions significantly.
Notably, a focal point of these allegations are the Chinese-American firm Wanxiang (which funds Prometheum Inc). Prometheum Inc was hotly discussed recently for receiving SEC and FINRA approval as the only US-registered crypto securities platform.
The uniqueness of this approval has drawn scrutiny from Republican lawmakers, led by Patrick McHenry, who question the SEC’s transparency and the legitimacy of Prometheum’s rapid ascent without offering any trading.
Fighting For The Truth
Amidst increasing demands for an investigation into Ethereum, the connections to the CCP and the SEC’s practices, on-chain researcher TruthLabs (@BoringSleuth) who is at the forefront of exposing these connections stated: “Stand behind me. Everyone. The last time I did this, They wanted me dead. We need you.”
Nerayoff fights alongside him: “I’m standing right by you dropping more bombs & lawsuits. They never imagined the breadth of receipts I saved. Crypto was to be the equalizer for all of us against the Establishment. It was hijacked by this Cabal & corrupt government agencies. It’s time we take it back.”
At press time, ETH traded at $2,645.
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