Morgan Alleges SEC Corruption, Accuses Favoritism towards Ethereum in the Ripple Case
In the ongoing legal battle between Ripple and the Securities and Exchange Commission (SEC), XRP lawyer Bill Morgan has made serious allegations of corruption against the regulatory agency. Morgan claims that the SEC has shown clear bias towards Ethereum, to the detriment of Ripple’s XRP token.
The focal point of Morgan’s accusations is former SEC officer William Hinman, whose actions have come under intense scrutiny. Morgan’s criticisms have sparked a wave of investigation and discussion surrounding the case. Blockchain researcher Collin Brown has highlighted the lawyer’s claims and the escalating dispute between Ripple and the SEC.
Morgan took to social media to express his frustrations, dubbing the situation “ETH Gate.” He sarcastically dismissed the SEC’s inquiry into Ripple as a conspiracy orchestrated by the XRP community. He emphasized that the investigation began when XRP was the third-largest cryptocurrency by market capitalization and pointed out that Hinman’s comments seemed to favor Ethereum.
The attention on Hinman’s tenure at the SEC has increased significantly. The Conservative Political Action Conference (CPAC) has officially filed a complaint with the New York and California Bar Associations, accusing Hinman of unethical behavior and potential conflicts of interest.
The complaint raises concerns about Hinman’s previous associations, particularly his ties to Simpson Thacher & Bartlett (STB), a law firm that was actively involved in the Enterprise Ethereum Alliance. CPAC argues that this connection presents a serious conflict of interest, as Hinman’s speech in 2018 influenced Ethereum’s regulatory status.
Andrew Langer, Director of the Center for Regulatory Freedom at CPAC, has been vocal in his support for an investigation into Hinman’s actions. Langer believes that Hinman’s advice may have benefited his former law firm, considering their involvement with Ethereum.
CPAC’s lawsuit highlights the controversy surrounding Hinman’s conduct, especially in relation to the SEC’s lengthy and divisive discovery process in the Ripple Labs case. The discovery of internal SEC emails, showing Hinman’s consultation with Ethereum co-founder Vitalik Buterin before his speech, has further fueled allegations of corruption and bias within the SEC.
Hinman’s departure from the SEC in 2020, followed by his return to STB and subsequent involvement with Andreessen Horowitz’s cryptocurrency team, has raised additional concerns about his actions.
As for the current state of the XRP market, CoinMarketCap data shows that the token’s price is currently around $0.5290, indicating a slight decline from the previous day. This, along with the bearish posture observed during the previous week, suggests a somewhat turbulent market for XRP.
In the midst of these price fluctuations, an XRP whale reportedly dumped 50 million tokens on the exchange, further adding to the volatility of the token.
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