The initial coin offering (ICO) of Ethereum in 2014, which raised $18 million, is under scrutiny due to potential legal issues. Posts by Steven Nerayoff on X suggest that co-founders Vitalik Buterin and Joseph Lubin may have bypassed regulations with a document that Lubin claims provided legal clearance. This could have been an unconfirmed "no-action" letter from the Securities and Exchange Commission (SEC) or a paper by authors of “Is Bitcoin a Security?”.
Lawyer Bill Morgan's tweets raise questions about whether Ethereum received two exemptions from the SEC, one for the ICO and another linked to the 2018 Hinman speech. This could suggest that Ethereum avoided securities registration, which would pose a risk of it being an unregistered security. However, any alleged violations might be beyond the statute of limitations.
These speculations contradict Lubin's claims of guideline adherence and intensify the legal scrutiny surrounding Ethereum's upcoming transition. The co-founders have not yet responded to these allegations as of Wednesday.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.