Ethereum’s 2014 ICO Raises Doubts Amid Potential Regulatory Violations

The initial coin offering (ICO) of Ethereum in 2014, which successfully raised $18 million, is currently facing scrutiny related to potential legal issues. Recent posts by Steven Nerayoff on social media suggest that co-founders Vitalik Buterin and Joseph Lubin might have circumvented certain regulations, referencing a document that Lubin asserts provided legal clearance. This document could be an unconfirmed "no-action" letter from the Securities and Exchange Commission (SEC) or a paper written by the authors of “Is Ethereum a Security?”.

Lawyer Bill Morgan has raised concerns on social media about whether Ethereum received two exemptions from the SEC—one for the ICO and another associated with the notable 2018 speech by former SEC official William Hinman. This scenario could imply that Ethereum may have evaded securities registration, putting it at risk of being classified as an unregistered security. On the other hand, any alleged violations might fall outside the statute of limitations.

These speculations challenge Lubin’s assertions of adhering to guidelines and heighten the legal scrutiny surrounding Ethereum’s anticipated transition. As of Wednesday, the co-founders have remained silent regarding these allegations.

This article was created with the assistance of AI and has been reviewed by an editor.