Former Ethereum advisor’s tweets hint at legal risks in Ethereum’s ICO structure and regulatory scrutiny.
Allegations arise over Lubin’s ICO share, contrasting with SEC claims, hinting at fraud.
Ethereum faces a crisis of trust amid debates on its governance and transparency.
Recent revelations have stirred the cryptocurrency community as Ethereum co-founder Joseph Lubin voiced concerns over the use of the term “ICO” and its implications. A CoinDesk article highlighted the Ethereum team’s discomfort with the term, fearing it may draw unwanted regulatory scrutiny.
In an article by @CoinDesk, it was revealed that he and other Ethereum team members dislike the term ICO due to its potential to attract unwanted attention from regulators. If you have concerns about this, it could be an indication that you have something to hide. I structured… pic.twitter.com/FlqcSkyiYA
— Steven Nerayoff (@StevenNerayoff) March 17, 2024
Joseph Lubin, who is also the founder and CEO of blockchain development firm ConsenSys, prefers to avoid language akin to traditional securities to mitigate attention from financial regulators. Former Ethereum advisor Steven Nerayoff, in his tweets, suggests that if the guidelines he structured during the Ethereum ICO were adhered to, legal troubles would not be a concern.
“I structured the Ethereum ICO in a way that protected everyone involved from any legal issues, and if those who participated had followed my guidance, this would not be a concern.”
In the ensuing discussion, attention turned to the anticipated Ethereum ETF amid revelations from SEC Chairman Gary Gensler about Lubin’s substantial ICO participation. Gensler’s statement conflicts with Lubin’s assertion of a minimal stake, surfacing allegations of securities fraud should Ethereum be classified as a security.
Nerayoff does not mince words, labeling Lubin’s actions as criminal and in violation of the terms he authored. These accusations go beyond personal misconduct, painting the Ethereum platform itself as compromised, deceiving, and a potential hazard to the investment community.
Meanwhile an @ethereum ETF is still on the horizon. @GaryGensler himself has confirmed that @ethereumJoseph acquired 9.5% of the ICO, despite Lubin's denial. If Ethereum is considered a security, then this would be an obvious case of securities fraud.Lubin, who wrote the terms,… https://t.co/CCmZJjh1ln
— Steven Nerayoff (@StevenNerayoff) March 17, 2024
Fueling the debate, a tweet from Mr. Huber questioned the veracity of Lubin’s claimed ICO share and whether he had prior knowledge of attempts to disguise the involvement of major investors. This query adds another layer to the unfolding drama and raises questions about the transparency and integrity of the ICO process.
The post Ethereum Co-Founder Raises Alarm on ICO Language and Regulatory Risks appeared first on Coin Edition.
