Steven Nerayoff, a former advisor to Ethereum, has launched critical allegations in opposition to Gary Gensler, the Chair of the US Securities and Trade Fee (SEC), accusing him of undisclosed involvement with ETH amidst the anticipation of an Ethereum Trade-Traded Fund (ETF). By way of an announcement on X, Nerayoff’s remarks have reignited issues round “ETH Gate,” suggesting Gensler’s actions mirror a deeper engagement with Ethereum and its regulatory standing than brazenly 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 particularly accused Gensler of “indirect approval for Prometheum Inc to designate ETH as a security effectively endorsing an ETF covertly.” These claims intertwine with ideas of affect from the Chinese language Communist Social gathering (CCP), hinting at a posh interaction of pursuits affecting Ethereum’s regulatory journey.

With rising hypothesis round an Ethereum ETF, it is evident that the SEC, led by Gary Gensler, is extra concerned in ETH than it seems. Gensler’s oblique approval for @PrometheumInc to designate ETH as a safety successfully endorses an ETF covertly.

This determination exhibits 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 private dangers for Gensler and the Ethereum founders, Nerayoff additionally claimed, “Something tells me a jail cell isn’t all he fears,” suggesting the stakes prolong far past regulatory repercussions.

Amidst group hypothesis on the CCP’s funding 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 management, 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 couple of days in the past, Nerayoff thinks that the Chinese language CCP is deeply concerned in Ethereum. Based mostly on on-chain analysis by TruthLabs (@BoringSleuth), he claims that the CCP is controlling roughly 66.6% of ETH provide. If verified, such a declare may problem Ethereum’s decentralization and safety perceptions considerably.

Notably, a focus of those allegations are the Chinese language-American agency Wanxiang (which funds Prometheum Inc). Prometheum Inc was hotly mentioned lately for receiving SEC and FINRA approval as the one US-registered crypto securities platform.

The individuality of this approval has drawn scrutiny from Republican lawmakers, led by Patrick McHenry, who query the SEC’s transparency and the legitimacy of Prometheum’s speedy ascent with out providing any buying and selling.

Combating For The Reality

Amidst rising calls for for an investigation into Ethereum, the connections to the CCP and the SEC’s practices, on-chain researcher TruthLabs (@BoringSleuth) who’s on 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.