- John E Deaton, a lawyer known for defending XRP holders, points out potential conflicts of interest in the SEC’s lawsuit against Ripple, involving Jay Clayton’s professional affiliations.
- Deaton exposes connections between Clayton and various cryptocurrency and financial entities, raising questions about impartiality and potential biases in the SEC’s enforcement actions.
John E Deaton, a legal professional and staunch advocate for XRP holders, has recently voiced his criticisms and concerns regarding the potential hidden agendas and conflicts of interest embedded within the SEC’s enforcement action against Ripple, as well as its CEO Brad Garlinghouse and co-founder Chris Larsen. Utilizing Twitter as his platform, Deaton has underscored the critical issues at hand.
Conflicts of Interest: A Deep Dive
“Upon the initiation of the XRP case on Clayton’s final day at the SEC helm, I instantly spotlighted the stark conflicts of interest evident in his decision to proceed with an enforcement action against Ripple, Garlinghouse, and Larsen,”
Deaton articulated in a tweet.
This revelation follows a critical statement from Brian Costello, who has accused the SEC of potentially obscuring financial misconduct linked to Chinese executives, under the watch of both Clayton and current chairman Gary Gensler. Costello specifically pinpointed Neil Shen from Sequoia, highlighting a pattern of negligence.
Unveiling the Hidden Connections
Digging deeper, Deaton brings to light Clayton’s ties with Patrick Berarducci of Sullivan & Cromwell law firm, noting Berarducci’s past role as Deputy GC at Consensys, a major player in the Ethereum ecosystem, and his position as Co-Chair of The Brooklyn Project. Deaton emphasizes,
“Several lawyers from Sullivan & Cromwell transitioned to roles at Consensys, which was not only represented by the firm but also facilitated the acquisition of JP Morgan’s Quorum and JPMCoin.”
In highlighting these connections, Deaton also draws attention to the intense rivalry between XRP and ETH, suggesting that the lawsuit against Ripple may have disproportionately benefitted Consensys and Ethereum.
Questioning Impartiality and Future Steps
Deaton challenges Clayton’s decision-making, pointing out the paradox in his voting behavior concerning enforcement actions. He urges the community and stakeholders to critically assess these affiliations and their potential impact on the SEC’s actions.
As the cryptocurrency world watches, Deaton continues to unravel the layers of this complex situation, shedding light on the potential biases and conflicts that may have influenced one of the most significant legal battles in the crypto space. At the time of reporting, XRP’s market status remains volatile, trading at $0.5236.
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