Steven Nerayoff, an early Ethereum advisor, unleashed a storm over the weekend, alleging corruption within the SEC and implicating Fox Business journalist Charles Gasparino in possibly shielding corrupt officials. Nerayoff’s explosive comments come hot on the heels of billionaire investors Mark Cuban and Elon Musk’s joint amicus brief in the SEC v. Jackey case, challenging the fairness of the SEC’s internal proceedings.
Cuban and Musk criticized the SEC’s reliance on in-house judges for administrative proceedings, highlighting a contentious issue. They noted these processes often yield inconsistent results for those the regulator charges. Nerayoff echoed these sentiments, emphasizing the need for “an army” to combat SEC injustices.
In a strategic move, Nerayoff appealed to prominent figures in the cryptocurrency community, particularly the XRP proponents, to amplify his message to Cuban and Musk. He believes he possesses evidence crucial to substantiating their case against the SEC.
However, Nerayoff’s assertions extend beyond the SEC, involving Gasparino, whom he accused of possibly stifling his colleague Eleanor Terrett to shield certain individuals. Nerayoff contends that any media intervention to safeguard corrupt entities, especially relating to his and Ripple‘s wrongful prosecution, will not remain hidden. He warned of ensuing scandal should Fox Business side with former SEC chair Jay Clayton.
Responding fervently, Gasparino dismissed Nerayoff’s accusations as fabrications, branding them an “idiotic conspiracy theory” and hinting at legal action. This altercation caught the attention of Bill Morgan, an Australian lawyer following the SEC v. Ripple case.
Morgan, reflecting on Gasparino’s retort, pointed to the puzzling nature of the SEC’s recent actions in the Ripple lawsuit. Specifically, the regulator’s abrupt decision last week to drop charges against Ripple executives Brad Garlinghouse and Chris Larsen has fueled speculation among legal commentators and the XRP community. Many now suspect a settlement may soon materialize.
Nerayoff’s allegations, Cuban and Musk’s legal challenge, and the recent twist in the SEC v. Ripple case signal turbulent times for the SEC. These developments suggest a pivotal moment for those involved and potentially for the broader regulatory landscape governing emerging technologies and digital assets.