In a recent series of tweets, crypto insider Steven Nerayoff, inventor of the utility token and ICO at Ethereum in 2014-2015, lambasted the SEC, alleging that it operates as a tactical unit of the establishment. “SEC is a tactical unit of the establishment. Courts are an effective weapon as time alone often defeats the target entity and freezes the market,” he tweeted. He goes on to claim that the real goal of this “war” is not against crypto itself but rather that “crypto is the prize.”
Crypto Insider Unveils Vendetta Against SEC
Upon his vocal return to X (formerly Twitter) in mid-September, Nerayoff sparked a vendetta against the SEC with a range of assertions. He questioned the legitimacy of “agency created law” and hinted at possible corruption, suggesting that certain individuals may have been strategically placed in the SEC with a specific purpose in mind.
“Is it possible that some people knew it wasn’t valid when giving or advising on the speech and the state of Ethereum (perhaps even under oath)? One would almost think William Hinman, Marc Berger and even Jay Clayton were sent to SEC for this very purpose…” he asserted, referring to the so-called “ETH Gate“.
Highlighting the potential breaches in terms of speculative buying during Ethereum’s ICO, Nerayoff hinted at having documentation that could shed light on irregularities. Recounting his ordeal, Nerayoff stated, “Either way, I suppose an effective way to silence me would be to prosecute, publicly discredit and ultimately attempt to imprison me.”
In support of Nerayoff, Michael Scotto, his lawyer, emphasized Nerayoff’s commitment to exposing the truth. “Steven Nerayoff fought and won the battle of a lifetime. Steve… is fully committed to making all his facts known at a time and manner that serves the interests of justice and the people. #staytuned,” Scotto tweeted.
Echoing these sentiments, on-chain researcher TruthLabs said, “If you aren’t following Steven Nerayoff and his story, you should. He stood up for his beliefs… The FBI even put him in Van, and tried to Imprison him, in which he fought back for four years and WON.” Pro-XRP lawyer John E Deaton kept it brief and mysterious, simply tweeting, “Stay tuned.”
Who Is Steven Nerayoff?
Nerayoff, a key figure in the early days of Ethereum and the CEO/Founder at Alchemist, faced criminal extortion charges for more than three and a half years. These allegations were dismissed by U.S. District Court Judge Margo Brodie of the Eastern District of New York in early May this year after federal prosecutors acknowledged their inability to substantiate the charges against him.
Nerayoff claimed he was the victim of an elaborate FBI scheme, saying his arrest involved being given “a clipboard with a list of names of hundreds of the top players in the crypto industry… and instructed to give the FBI dirt that would help them make ‘dozens of convictions’ in exchange for a lighter sentence.”
Despite the uncommon move by prosecutors to drop the case post-indictment, the motive behind Nerayoff’s allegations against the SEC and other authorities remains an area of intense speculation. Maybe Nerayoff had something to pressure regulators with; maybe he was able to get out of it by using some kind of bargaining chip, which he will now make public.
True or not, the story of Steven Nerayoff is a special one, promising more captivating revelations in the near future.
At press time, total crypto market cap stood at $1.035 trillion.