Home / Capital & Crypto / Blogger David Seaman Calls Ethereum Classic a Scam; Questions Silbert’s and CoinDesk’s Roles

Blogger David Seaman Calls Ethereum Classic a Scam; Questions Silbert’s and CoinDesk’s Roles

Last Updated March 4, 2021 4:50 PM
Lester Coleman
Last Updated March 4, 2021 4:50 PM

David Seaman, a crypto blogger, has written a blog  in the Huffington Post saying that sources have told him authorities are examining Barry Silbert’s role with Ethereum Classic, which Seaman considers a scam. In another Huffington Post blog , Seaman claims CoinDesk, which Silbert’s Digital Currency Group has acquired, is promoting Ethereum Classic.

David Seaman
David Seaman

In the interest of disclosure, Seaman noted he holds some ether, some bitcoin, some U.S. dollars, and some gold. He pointed out that since he held ether at the time of the Ethereum hard fork, he also has a Classic position by default, but he has not sold any. He said he is not interested in profiting from the sale of the “duplicated tokens.”

Silbert Tweets His Concerns

On August 3, Silbert tweeted that it is sad to see the Ethereum developer community splintering. He noted that everyone should support whichever chain the market selects.

In response to Silbert’s tweet, Seaman tweeted, “You had nothing to do with that, eh? You own so much, yet know so little. Markets hate that sort of man.”

Seaman Calls Classic Insecure

In his recent Huffington Post blog on Silbert, titled, “In Bitcoin’s Barry Silbert, A Prosecution Waiting To Happen,” Seaman claimed a source assured him that Ethereum Classic fits the loose definition of a scam and that it is “in no way Ethereum.” Instead, Seaman noted, Classic is an “insecure orphan chain” being promoted in a way that would be illegal if Ethereum were a publicly traded company, which it could eventually be.

Seaman noted that Ethereum’s inventor, Vitalik Buterin, has publicly pledged all of his support to ETH, Ethereum’s main blockchain.

(Buterin has also stated that the Ethereum Foundation continues to develop and support the Ethereum blockchain and will commit to the hard fork decision taken by miners, CCN.com reported. Buterin called the hard fork community consensus as an “admittedly difficult” decision. The foundation will not oppose or hinder any efforts to use the Ethereum code to create other blockchains, Buterin said, or for that matter, “the community effort to continue the no-fork chain,” known as Ethereum Classic or ETC.)

Seaman further claimed that Silbert has had a prior run-in with the Securities and Exchange Commission (SEC). Seaman stated in a previous blog  that Silbert faced SEC action over an event that involved the promotion of “BIT Shares.”

Also read: Vitalik Buterin weighs in on the Ethereum Classic blockchain

Violation of SEC rules?

Seaman’s second blog raised the question of whether Classic violates the spirit of U.S. securities law.

He further noted that CoinDesk’s coverage has changed since Silbert’s Digital Currency Group acquired the cryptocurrency news site. Seaman posted some samples of CoinDesk reports that he claims promote Classic. He noted that if penny stockers purchased their media outlets, it would make it easier for authorities to prosecute them.

Featured image from Shutterstock. Story image from Twitter.