Ex-Ethereum Adviser Spots Gary Gensler’s Unethical Crypto Ties

Steven Nerayoff, a former Ethereum advisor, intensified calls for SEC Chair Gary Gensler’s immediate resignation, citing allegations of unethical conduct.

While prominent crypto leaders have demanded Gensler’s removal due to his aggressive regulatory stance, Nerayoff’s latest accusations pertain to Gensler’s illegal actions and improper connections. He claimed Gensler had silenced him to prevent exposure of power abuses.

In a post on X (formerly Twitter) on November 11, 2024, Nerayoff alleged Gensler enabled illegal naked short-selling and covered up misconduct linked to Ripple, the Chinese Communist Party (CCP), and Ethereum’s ETHGate scandal.

.@GaryGensler, I’m calling for your immediate resignation. You continued to silence me because of my knowledge of @SECGov’s illegal activities under your “regulation by enforcement” reign.

Your plan backfired.

Since I know where the bodies are buried, and in case proof of…

— Steven Nerayoff (@StevenNerayoff) November 10, 2024

Further, Nerayoff accused Gensler of shielding illegal naked short selling, specifically targeting $DJT (Trump Media) and $OSTK (Overstock).

He claimed that Gensler’s refusal to enforce rules on naked short selling amounted to election interference, particularly affecting Trump Media. To further his claims, Nerayoff called on former President Donald Trump, Elon Musk, and Vice President-elect JD Vance to expose these actions and demand accountability.

These statements come as the U.S. prepares for potential regulatory shifts following Trump’s election victory. With Gensler under scrutiny for his crypto policies, some experts argue his leadership could hinder industry innovation.

Read also: Trump Vows to Remove SEC’s Gensler, Supports Pro-Crypto Shift

Ripple and Coinbase Push for Pro-Crypto Leadership at the SEC

Following Trump’s win, Ripple CEO Brad Garlinghouse urged the administration to replace Gensler with crypto-friendly candidates like former CFTC Chair Chris Giancarlo or ex-acting Comptroller Brian Brooks. Similarly, Coinbase CEO Brian Armstrong has voiced support for leadership changes to foster a crypto-positive environment.

John Reed Stark, a former head of the SEC’s Office of Internet Enforcement, suggested Trump’s presidency would end the SEC’s aggressive stance on crypto, signaling a potential shift in enforcement priorities.

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