"Tokentus Investment CEO commented on ETHGate, describing it as a hot story"

Oliver Michel, CEO of Tokentus Investment AG, recently commented on the ETHGate scandal, one of the most controversial topics in the crypto industry.

ETHGate’s explanation
To provide context, ETHGate relates to allegations that the Ethereum team cultivated relationships with top officials at the U.S. Securities and Exchange Commission (SEC) to give Ethereum a regulatory advantage over other crypto assets.

According to critics, Ethereum’s relationship with the SEC allegedly prompted former corporate finance chief William Seaman to declare ETH not a security in his infamous June 2018 speech.

As discussions about the ETHGate scandal intensify, Michel recently commented on the matter in an interview.

Digital Asset Investor, a well-known XRP influencer, recently shared an interview with Michel on the X platform. The XRP enthusiast criticized the U.S. mainstream media for ignoring the controversy surrounding Ethereum’s early days.

A hot topic
In an interview with Der Aktionär, Michel described the “ETHGate” scandal as a “very hot topic,” stressing that he can’t wait to see how it ends.

He mentioned Hyman’s clever declaration that Ethereum is not a security. Michel also recounted how SEC Chairman Gary Gensler refused to give a direct answer during a congressional hearing on whether ETH was a security.

Additionally, the Tokentus Investment CEO noted that Ethereum could be considered a security, given that it was launched via an initial coin offering (ICO) in 2015.

Michel cited Judge Analisa Torres’ ruling in the Ripple case, saying that Ethereum’s ICO was similar to Ripple’s institutional XRP sales and should have been registered with the SEC before doing so.

However, Michel said the Ethereum team made ETH available to institutional investors before fulfilling the necessary regulatory requirements. Michel also commented on other events from Ethereum’s early days, citing an old post from top crypto consultant Steven Nerayoff.

According to the post, Nerayoff claims to have a list showing the amount of ETH distributed to early Ethereum contributors.

Ethereum insider slams ETH co-founder
Meanwhile, Nerayoff slammed Ethereum co-founder Joseph Lubin, accusing him of violating the terms and conditions of the ETH ICO.

Nerayoff claims that Lubin wrote the ICO’s terms and conditions to prevent speculative buying during early ETH sales.

To prove his claim, Nerayoff attached a screenshot of an email from Lubin asking Ethereum Foundation team members to review the terms and conditions before the ICO begins.

However, Nerayoff claims that Lubin violated the terms of the early ETH sales by engaging in speculative buying during the event.

Worse than Ripple’s institutional sales?
The early Ethereum advisor asserted that Lubin violated the terms of the ETH ICO in a way that was worse than Ripple’s securities violations through its institutional sales.

Last year, a federal court ruled that Ripple violated federal securities laws by selling more than $700 million worth of XRP to institutional investors between 2013 and 2020.

While the SEC claims that XRP is a security, the regulator has never explicitly or indirectly labeled ETH a security.

ETHGate: One of the biggest financial frauds
Additionally, Nerayoff described the ETHGate scandal as one of the biggest financial frauds of all time.

The crypto consultant said many people find it hard to believe the alleged illegal actions of people like Lubin and Bitcoin. According to him, the magnitude and potential consequences of the charges were beyond belief for many.

Despite the potential impact of the ETHGate scandal, Nerayoff noted that the U.S.-based mainstream media continues to ignore the story. However, he promised not to give up on exposing the corruption that occurred in Ethereum’s early days.

Disclaimer: This content is for informational purposes only and should not be considered financial advice. The opinions expressed in this article may contain the personal opinions of the author and do not reflect the views of The Crypto Basic. Readers are encouraged to perform thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.