The US SEC is considering labeling Ethereum (ETH) as a security token, following a report by Fortune. Meanwhile, investigations are targeting the Ethereum Foundation for alleged illegal actions.
According to CoinDesk, the Foundation received a confidential inquiry from an unknown regulatory authority, but the details remain under wraps.
Additionally, online investigator Boringsleuth hinted at the Foundation’s involvement in the 2016 Gatecoin hack on X, where 185,000 Ethereum and 250 Bitcoin were lost.
Also, blockchain analysis suggests the stolen funds ended up in a wallet tied to the Foundation. An independent law firm is also investigating the Foundation’s alleged link to the hack.
The US SEC has expanded its investigation to Ethereum’s network, assessing if Ether should be deemed a security token.
This includes probing companies associated with the Ethereum Foundation for documentation and financial interactions. Ether’s value has dipped over 2%, reflecting the market’s reaction to the ongoing investigations.
Recently, the SEC solicited public comment on the Ethereum ETF in December and has postponed a decision on many occasions. Also, the SEC has postponed its decision on the ARK 21Shares Ethereum ETF, which tracks the performance of ether, until May 24, 2024.
Mohammad Ali is a fintech and cryptocurrency writer who has been covering the intersection of finance and technology for several years. Ali has a deep understanding of the financial industry and the ways in which technology is changing it, with a special focus on the rise of digital currencies and blockchain technology.
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