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ETHgate and Ripple’s SEC Lawsuit Conspiracies Hotting Up as FOX Journo Trolls XRP Army

Published October 23, 2023 1:08 PM
Teuta Franjkovic
Published October 23, 2023 1:08 PM

Key Takeaways

  • Judge Torres was attacked by Charles Gasparino, who also trolled the XRP Army.
  • On Twitter, attorney John E. Deaton refutes Gasparino’s theory.
  • Cardano founder’s actions strain his relationship with the community as he taunts XRP fans with ETHGate memes.
  • XRP community responded to the Cardano CEO’s allegations by suggesting his potential involvement in ETHGate.
  • Rumors hint at the SEC granting Ethereum a lenient stance, facilitating its growth without regulatory hurdles.

The XRP Army and Ripple officials have once more come under fire  from Fox Business journalist Charles Gasparino.

The seasoned journalist this time targeted Judge Analisa Torres, whose recent favorable ruling regarding Ripple’s $XRP sales established a precedent for cryptocurrency regulation.

FOX Journalist Accuses Judge Of Questionable Rulings

According to the court , XRP is not considered to be a security since, shockingly, the 1934 Securities Act does not include contemporary measurements of financial instruments. The senior journalist for FOX responded by making his own accusations against Judge Analisa Torres and drawing parallels between it and another case in which she had declared a Proof-of-Stake (PoS) cryptocurrency.

Gasparino posted a link  to an article from the New York Post in which Torres’ decision resulted in the release of a gang member with a reputation in the criminal underworld. Gasparino concluded his tweets with the words “To my friends in the XRP Army — A salute!” and a picture of himself drinking a beer in Naples.

Leading Attorney Dismantles Reporter Mockery

While the senior FOX journalist and cryptocurrency traders have been arguing on Twitter for the past two weeks, John E. Deaton, a reputable pro-blockchain attorney, dismissed  Gasparino’s allegations, saying: “Show me a Howey factor that reflects the level of expertise of the investors. No, you can’t.”

Since numerous factors would necessitate a revised legal framework, Deaton, the managing partner of the Deaton Law Firm, refers to cryptocurrencies as a new generation of money that cannot be measured by the Howey Test.

“I’ve been fighting echo chamber politics and tribalism for the past three years. SEC officials began referring to bitcoin as a securities in 2013. In fact, the U.S. Securities and Exchange Commission (SEC) views Bitcoin, the most well-known digital asset, as the only completely decentralised currency in existence today. That wasn’t the case, though, nine years ago,” Deaton said .

 

Being Part Of Ethereum’s Alleged SEC Bribery Scandal?

In the meantime, Charles Hoskinson, the creator of Cardano, made light of Ethereum’s allegations of bribery made to the US Securities and Exchange Commission (SEC), which inflamed the XRP hornet’s nest on X.

Hoskinson has entered the debate  prepared with jokes in an effort to spook enthusiasts as ETHGate rumours become more prevalent in the XRP community.

“You know my favorite part about the holidays is kicking the XRP ETHGate Hornet’s nest with easy-to-meme sound bites connected to mostly ignored nuanced points. It’s like the first snow of winter,”said  Hoskinson.

Some members of the XRP community have claimed that Ethereum may have paid off the SEC to turn a blind eye, preventing the securities regulator from classifying the asset as a security. On the other side, the SEC’s decision to classify XRP tokens as securities launched a protracted legal dispute that, according to analysts, prevented XRP from realising its full potential.

The XRP community responded to Hoskinson’s jabs by launching salvos at the creator of Cardano. They responded with memes that suggested Hoskinson involvement in the alleged bribing of the SEC by Ethereum.

“It would be a huge plot twist to see you mixed up in all of this. Maybe that is why you turn a blind eye to what is in front of you. These Twitter sleuths are not playing around.” said  an angry Twitter poster.

Hoskinson was one of Ethereum’s co-founders, which is the basis of the XRP community’s arguments, but the outspoken Cardano founder contradicted their accusations by stating that he departed the Ethereum project in the summer of 2014.

Now, Hoskinson is mentioning Bitcoin more and more.

Hoskinson continued by calling the ETHGate mere conspiracies and pointing out how unlikely it was for Ethereum to pay off the SEC to target XRP. He emphasised that the notion was exceedingly improbable because XRP does not experiment with smart contracts and is not a direct rival to Ethereum.

Dispute With XRP Executives

Hoskinson noted that none of that action implied corruption and characterised the SEC’s handling of Ethereum as, at best, favouritism. Ripple’s CTO, David Schwartz, attacked Hoskinson’s submission, saying that the SEC’s actions constituted a blatant instance of corruption.

Schwartz’s public accusation against the security watchdog of corruption marks the first instance of an executive doing so, while Ripple Labs executives have been cautious in their references to ETHGate as a corrupt entity.

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