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John E Deaton Profile picture
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Mar 5 • 26 tweets • 15 min read
@DigPerspectives @digitalassetbuy @TAIGxrp

Why haven’t the trade associations or crypto leaders spoken out against the SEC or appeared as amicus on behalf of the industry?

When ETH was given a free pass was part of the deal @Ripple and #XRP would be the sacrificial lamb?
Have you listened to @GaryGensler lately? He talks about picking a high profile project and going after it as a way to send a message to the entire industry. Gensler met with Clayton in March of 2018. Gensler was aware Ether investors met with Hinman asking for the ETH free pass.
Watch the👇 video. Genlser scoffed at:

“a group of venture capitalists went into the SEC.”

He said:

“they’re sort of saying – believe us, we get you, we’re with you, SEC – but we have a bunch of clients who are going to evolve to be a consumable token …”

(sound familiar)
Gensler also said:

“I kind of don’t think this is going to work.”

Gensler added:

“the market needs clarity” and “the uncertainty as to whether ether is or is not a security…”
Gensler concluded that the uncertainty regarding ETH:

“could exist for months but at some point in time it is worthwhile to settle that down or have it fall into the courts.”

We know 2 months after Gensler made those comments, Hinman “settled it” w/ the #ETH free pass speech.
On May 12, 2018, @ethereumJoseph said:

“we need mechanisms” to allow for fundraising and token sales “despite the fear, uncertainty and doubt you’ve heard over these many months, we are making great strides in helping the people that make those decisions understand…”.

See 👇
The 👆 video was one month before the Hinman speech.

On May 21, 2018 @fundstrat Tom Lee (ex-JP Morgan) makes an elliptical comment that the SEC will declare #ETH not a security, causing a confused CNBC host to ask for him to explain. (How did he know? Did he see a draft?).
👇👇
Tom Lee is a former @jpmorgan executive and we know that JPM has been w/ Lubin and #Ethereum from the beginning. Watch this interview with @AngieTVLau and Joe Lubin regarding @ConsenSys’ purchase of JP Morgan’s Quorum and #JPMCoin. 👇

Lubin explained:

“ConsenSys and JP Morgan have been very friendly and collaborative for quite some time…we’ve interacted w/ them roughly from the start. We started to interact w/ them in a really concerted way around the time of the advent of the Enterprise Ethereum Alliance.”
It doesn’t get more clear when Lubin explained the connection and involvement of JP Morgan when he said:

“We were two of the major drivers of that initiative and have been two of the major drivers of activity inside the EEA since launch.”

How was Tom Lee so sure?
I follow Tom Lee and he’s absolutely brilliant but I doubt he’s clairvoyant.

On May 24, 2018, Lubin said:

“we are able to issue” tokens that are not securities and describes apparent details of the Hinman speech almost a month before it is made. 👇👇
Less than two weeks before the speech Gary Gensler says:

“there is a strong legal case” that #Ether is a security.

“They were careful, they were clever, but they still, I think, were a duck and waddles and quacks like a duck.”

(But Gensler refuses to answer now)
👇👇
On June 5, 2018, @novogratz with whom @VitalikButerin arranged a purchase of 500K #ETH tokens for speculative purposes in 2015, said:

“I bet dimes to donuts” that the SEC will say that #Ether “probably was a security but it isn’t anymore.”

This was 9 days before the speech. 👇
Like Tom Lee, did Novogratz see a draft of the speech in advance? If he or Tom Lee hadn’t seen a draft, were they informed what Hinman was going to say or not say by someone with knowledge? What about Lubin? Do we think he may have shared some inside info he was learning?
Mike Novogratz admitted as much. On July 17, 2018 he explained Lubin was a college roommate of his and is:

“a wonderful source for me and we collaborate,”

adding that he is:

“talking to enough people in the ecosystem who are talking to the regulators every day.”
👇👇
9 days before the Hinman speech, Novogratz stated that his gut feeling was that the SEC would take out a token and a promoter to send a message to the market.

(Doesn’t that sound similar to the Gary Gensler approach) 👇
At the same time Mike also explained how he shorted #XRP after seeing a spot on @CNBC explain how to purchase it.👇

I’m not making any accusations, but I am suggesting that several people need to be asked relevant questions.
6 days before the speech, on June 8, 2018, Joseph Lubin said:

“we certainly need bodies like the SEC to scare many projects straight.” 👇

(From 2018 until present day, Lubin has been the SEC’s biggest cheerleader - including disagreeing w/ @HesterPeirce’s criticism of the SEC)
On June 14, 2018, shortly after Hinman’s speech, Lubin appeared on the same stage w/ @JoshConstine. He claims he “wasn’t able to read through Bill’s entire speech” but asks if Hinman “spoke about XRP at all?” Constine says he didn’t, and Lubin replies: “That’s interesting.”
👇👇
6 days after Hinman’s speech, @TimDraper told Gensler bankers are “panicking right now” about crypto’s disruptive potential, and predicts legacy finance players will SUE, exert media pressure and leverage regulators TO TRY TO SLOW ITS PROGRESS.

(Draper literally called it) 👇👇
On June 26, 2018 @bgarlinghouse noted that @coinbase announced two days before the Hinman speech that it was listing Ethereum Classic.

(@brian_armstrong isn’t known for his boldness 🆚 regulators - why was he, like Novogratz and Tom Lee, so confident in an #ETH free pass)
👇
Two weeks after the speech, a jubilant Lubin tells @TheDomino that he believes competitor Ripple is “massively overvalued”.
👇👇
2 months after the speech, Lubin said Clayton

“indicated they wouldn’t be grandfathering anybody in”

and that

“the securities law issues are pretty close to resolved”

and

“I think there are going to be some bad times for some projects going forward”.

(He knows) 👇
Lubin said his “thesis” is that the SEC “doesn’t want to kill blockchain” and that it will do so entirely through “positive statements” about #BTC & #ETH only.

In September 2018 Lubin warned that:

“a reckoning is coming” from the SEC for “certain projects.”

(How does he know)
Lubin stated ONLY #BTC & #ETH were declared non-securities, adding:

“they have not said the same about other tokens.”

He stated Ripple’s token wasn’t provided similar clarity and claims to know the SEC WILL NOT find any token other than bitcoin and ether to be decentralized.🤔
The below 👇 tweets finishes this super long 🧵. But I wanted to show what can be proven vis Twitter and YouTube. Imagine if we we had the power of subpoena. We could het wallet addresses, bank records, emails, calendars, notes from meetings, trades, digital asset holdings, etc.

• • •

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More from @JohnEDeaton1

John E Deaton Profile picture
Mar 7
16 FACTS PROVING THE CASE IS DOA

1) On February 8, 2012, @jespow & @JedMcCaleb received a legal opinion letter from Perkins Coie informing them if they sell #XRP to investors and use the money for operational costs, #XRP will likely be an investment contract aka, a security.👇 Image
2) After receiving the above legal opinion letter, @chrislarsensf and Jed McCaleb scrap the old business model and instead seek VC funding for business operations. Investors will not receive #XRP, but instead, receive actual shares of stock in the company Ripple.
3) Larsen and McCaleb received a 2nd opinion from Perkins Coie on October 19, 2012. Based on the new business model, they are advised #XRP is most likely NOT a security.

The letter hints at risks related to Banking Secrecy Laws and being labeled a Money Services Business.👇 ImageImage
Read 23 tweets
John E Deaton Profile picture
Mar 5
Four months before the lawsuit, Clayton’s law firm, Sullivan & Cromwell (SC), negotiated the purchase of JPM’s Quorum and the #JPMCoin by Lubin and Consensys. It appears that Clayton, helping his firm, directed Hinman to contact Lubin (represented by SC).

coindesk.com/business/2020/…
When interviewed by @laurashin, Lubin described his Quorum acquisition’s offering, an “interbank information network” that is “similar to what SWIFT does” and works with “north of 400 financial institutions around the world”.  He adds that ConsenSys supports the #JPMCoin.
Lubin’s description of Quorum & #JPMCoin’s use case sounded very similar. 2 1/2 years earlier, @bgarlinghouse described how Ripple was utilizing #XRP to disrupt and replace #SWIFT.

When Lubin said Ripple & XRP were not competition just look at WEF memo.
Read 15 tweets
John E Deaton Profile picture
Mar 5
@Belisarius2020

There are 63 emails with a Draft of the Hinman speech. At the same time these emails are going back and forth a memo was being written analyzing w/r #XRP was a security. That memo was finished on June 13, 2018 - the day before Hinman’s speech.
Therefore, the people who responded to the Draft Speech wouldn’t have read the #XRP memo. #XRP was battling #ETH for the number 2 spot for years. What is the likelihood that at least one person in the chain asked:

“What about XRP? Or Wouldn’t today’s XRP also not be a security?”
Here’s more food for thought. We also know that the Estabrook notes from the Roisman and @bgarlinghouse meeting favors @Ripple and Brad. We know that b/c the SEC turned over the notes from the Clayton / Hinman meeting and didn’t claim privilege. The SEC is clearly cherry picking.
Read 5 tweets
John E Deaton Profile picture
Mar 4
Brad, there’s been no contact.

Anyone who reads my very unusual Writ of Mandamus and analyzes it solely w/in the 4 corners of the document, while only reviewing Mandamus caselaw, fails to see the big picture. Filing the Mandamus was a strategic move designed to force a response.
That response provided a de facto invitation to file the motion to intervene or seek amicus status. Several of the same lawyers who ridiculed my Writ also took shots when my initial motion to intervene was denied without prejudice b/c I failed to follow the Court’s local rules.
Of course, when the @DigitalChamber was denied pro hac status for failure to comply with the Court’s local rules, similar criticism was non-existent.
Read 11 tweets
John E Deaton Profile picture
Mar 3
Why hasn’t the judge thrown out the case?

Between tweets, DMs, and emails to my law firm, this question has been asked over 100 times. People ask w/ all the evidence related to conflicts of interests and appearances of improprieties, why hasn’t the judge dismissed the case?
The judge isn’t on Twitter, following this. The judge relies only on evidence she is presented by the PARTIES in the case. Except for a few inferences, Ripple has not offered evidence related to any possible corruption.
In fact, I’m the only one who has offered any evidence on the issue at all. The only reason I was able to submit any of this evidence is b/c the SEC attacked me personally, labeling me a clout seeking Twitter conspiracy theorist. I offered objective facts supporting my criticism.
Read 7 tweets
John E Deaton Profile picture
Feb 27
HOW #ETH BECAME:

“The only game in town.”

We received a tiny bit more of the Hinman deposition. He sent an email to @ethereumJoseph.👇

We don’t know which meeting w/ Lubin the email refers. Notice how @Ripple’s lawyer asked w/r Clayton directed Hinman to reach out to Lubin.
Lubin & @ConsenSys were represented by Clayton’s firm Sullivan & Cromwell. Hinman met Lubin & Consensys on December 13, 2017 and the very next day, @MattCorva, Consensys’ General Counsel, publicly stated that Consensys was building an alliance w/ the SEC.
(After 1 meeting?)🤔 👇
On April 23, 2018, Hinman met AGAIN w/ Lubin & Consensys and on May 12, 2018, Lubin stated he was “making great strides w/ regulators.”

Two weeks later, Lubin claimed he could issue tokens in ways detailed in Hinman’s speech - EXCEPT - the speech had NOT yet occurred. 🤨👇
Read 25 tweets

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