Recently, crypto insider and former Ethereum consultant Steven Nerayoff revealed that the U.S. Securities and Exchange Commission (SEC) had compiled a list of prominent individuals it intended to address.
Among the names on the list was technology journalist Naomi Brockwell, who was legally assisted by John Deaton in the LBRY vs. SEC case. Specifically, Nerayoff alleged that the SEC had taken hostile action against her for as long as three years after she refused to cooperate with the agency. See below for all the details.
Summary
Crypto Insider and former Ethereum consultant Nerayoff accuses the SEC
As anticipated, Steven Nerayoff, a former Ethereum consultant and prominent figure in crypto, recently claimed that the U.S. Securities and Exchange Commission (SEC) had a list of individuals within the cryptocurrency community, including technology journalist Naomi Brockwell.Â
Specifically, according to Nerayoff’s statements, the SEC was seeking her involvement in dealing with these individuals.
In a post that caught attention on X (formerly Twitter), Nerayoff accused the regulatory agency of planning to eliminate prominent figures in the cryptocurrency world.Â
In fact, he made his concerns public by stating the following:
“My lawyers have been telling me for months that the SEC wants any information on prominent figures in the cryptocurrency industry, threatening severe penalties if they refuse.”
Despite his decision not to cooperate, Nerayoff claimed that the SEC has doggedly pursued him for three years despite knowing he was innocent.
LBRY seeks to overturn ruling after Ripple vs. SEC case
Also in May, a New York judge dismissed criminal extortion charges against Nerayoff because the accusers failed to prove their claims.
Since then, Nerayoff has made several allegations against U.S. regulators public. This latest revelation comes in the wake of John Deaton‘s entry in the LBRY lawsuit against the SEC on behalf of Naomi Brockwell.
LBRY, a file sharing and payments platform, is seeking to challenge a ruling issued against it on July 11, 2023, when the SEC had accused the platform of offering unregistered cryptocurrency securities.
However, following the ruling in the Ripple vs. SEC case, LBRY hopes to use it to reverse its legal fate. The July decision resulted in civil penalties and a ban on involvement in unregistered security offerings.
Steven Nerayoff called the LBRY lawsuit one of the most controversial actions taken by the SEC against crypto entities. Not surprisingly, Nerayoff praised Naomi’s determination and John Deaton’s entry into the case.
These new allegations raise further questions about transparency and ethics within the SEC. After a series of lawsuits against the cryptocurrency industry this year, the agency finds itself under the shadow of disturbing allegations, including ETHGate, allegations of personal bias and potential conflicts of interest.
Differences between CFTC and SEC chairmen over virtual assets
Rostin Behnam, chairman of the Commodity Futures Trading Commission (CFTC), recently reaffirmed the need for a comprehensive regulatory framework for cryptocurrencies in the United States, contrasting with Securities and Exchange Commission (SEC) Chairman Gary Gensler.
Specifically, Behnam insisted that Congress needs legislative action to properly regulate the cryptocurrency market, while Gensler believes that existing securities laws are sufficient.
The divergent views between the two regulators also include the classification of cryptocurrencies as securities or commodities and reflect the ongoing debate over the regulation of virtual assets in the United States.Behnam also shared that the CFTC obtained sanction orders of more than $6 billion in the last fiscal year, 34 percent of which involved illegal behavior related to cryptocurrencies.
