CryptoLaw, a site dedicated to U.S. legal and regulatory developments for cryptoassets, has publicly challenged Joseph Lubin, co-founder of Ethereum, after he admitted the company has been maintaining "a significant treasury of ETH."
This comes after ConsenSys, an Ethereum blockchain software company also founded by Lubin, announced it had successfully raised $450 million USD in its latest financing round. This so-called "Series D" fundraiser was spearheaded by ParaFi Capital, an investment firm that focuses on "decentralized finance markets."
Lubin was sharing the news in a Twitter thread about the successful fundraising round but, after facing backlash from other users, restricted comments. Many users were questioning how Ethereum's philosophy of decentralization can be reconciled with the company itself holding significant reserves of ETH. In particular, news about Ethereum's stock of its own cryptocurrency prompted a response from CryptoLaw, which has long been commenting on Ethereum's supposed “free pass” from the SEC. CryptoLaw has been directly comparing Ethereum's supposed "sweetheart deal" with the SEC to the Ripple lawsuit, which has been mired in controversy.
ConsenSys is a direct competitor of Ripple with both developing cross-border payments systems for Ethereum. CryptoLaw claims, with reference to papers filed in court, that multiple questionable meetings between ConsenSys and SEC officials took place to lobby for a "free pass" and redirect SEC attention to its competitor. As a result of the SEC lawsuit, Ripple XRP lost $15 billion in market capitalization.
One Twitter user speculated that the SEC lawsuit has been purposely dragged out in order to give ConsenSys time to develop a viable competitor to XRP.