Thread by @JohnEDeaton1

I recommend re-reading the Grundfest Letter now that we know so much more. It is very enlightening to re-read the letter now that we have much more context and knowledge about the lawsuit and why and how it was filed. A few more things will jump out at you.

For example, when Grundfest discusses the mass exodus of the senior leadership at the SEC after filing the case he notes:

“The directors of the Divisions of Enforcement, Corporate Finance, and Trading and Markets have all been deeply involved in the decision to [file suit].”

“Deeply involved” says a lot. It means these people were the ones pushing for the lawsuit as they were walking out the SEC’s door forever. Think about that for a minute. Why would these individuals push the most significant non-fraud SEC enforcement action since Howey and leave?

Who are we talking about? Who left?

Clayton - the Chairman;

Hinman - Director of Corporation Finance;

Marc Berger - Director of Enforcement;

Bruce Redfearn - Director of Trading & Markets.

Clayton’s firm Sullivan & Cromwell represented @ConsenSys and @ethereumJoseph and brokered the Quorum #JPMCoin deal - a direct competitor to @Ripple and #XRP. Clayton goes to 1River w/ it’s $1B bet on #BTC & #ETH. Clayton voted to bring the case & filed it on his last full day.

Hinman didn’t retire from STB per the SEC Ethics Chief and he collected $15M from his ongoing partnership at STB a member of the EEA - while at the SEC. Hinman agreed to give #ETH the free pass requested by EEA law firm Perkins Coie (hired by @a16z) and is now a partner at a16z.

Berger, Director of Enforcement, helped ✍️ the grossly overbroad Complaint absurdly alleging ALL #XRP, including secondary market sales of #XRP independent of @Ripple are unregistered securities. He was made a partner at STB - a member of the EEA. 👇

forkast.news/sec-ripple-law…

Bruce Redfearn, a banker for @jpmorgan before going to the SEC, left days after the lawsuit, as well. In March 2021, he was hired by @coinbase. He resigned after 4 months.

There are more nuances you pick up on when re-reading the Grundfest Letter.
👇
crypto-law.us/wp-content/upl…

But when you think how significant digital currencies are (#Bitcoin CBDCs) its not hyperbole to call the SEC 🆚 @Ripple/#XRP case as the most significant non-fraud enforcement action since 1946.

Who files a case of this magnitude and leaves? They all left! Why?

#itwasaweapon