John Deaton explains why ETH was picked over XRP to allege in KuCoin case
John Deaton, a pro-crypto lawyer and legal expert, claims that the attorney general chose Ethereum (ETH) even though XRP was traded on KuCoin to accuse the exchange of selling unregistered securities.
Ironically, #XRP has been sold on KuCoin. The NYAG didn’t pick #XRP to allege now did it? They chose #ETH and staking. It’s about going after ALL staking. pic.twitter.com/6oJW2L59G9
— John E Deaton (@JohnEDeaton1) March 16, 2023
According to Deaton, this action is not a coincidence, and regulators—in this case, the NYAG—are purposefully focusing on Ethereum and ultimately staking to end all initiatives of a similar nature.
In addition, he includes a text from a case that suggests ETH owners can make money by just participating in token staking. The attorney asserts that it was a calculated long shot to obtain a default judgment and a finding stating that Ethereum was made available for purchase by the exchange as an unregistered security.
Previously, John Deaton gathered a collection of Ethereum owners to bring a class action complaint against the New York attorney general. More than a thousand complainants have reportedly signed up, but there aren’t enough participants directly from that state. Together with ETH owners, the KuCoin exchange itself has filed a lawsuit against NYAG.
The SEC complaint against Ripple was the subject of a previous class action lawsuit brought by a lawyer on behalf of XRP holders. More than 75,000 complainants gathered, and part of their testimony was later added to the main case.
XRP/USD 4-hour chart | Source: TradingView
At the time of writing, Ripple’s native token is changing hands at $0.3633.
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