A new twist has unfolded in the legal drama between the SEC and Ripple, as CryptoLaw founder and attorney John Deaton revealed snippets from William Hinman’s deposition transcript on Twitter. Hinman, the former director of the SEC’s Corporation Finance, gave his testimony on July 27, 2021, in relation to Ripple’s ongoing lawsuit against the SEC.
According to the transcript, @s_alderoty was present and listening during the Hinman deposition. I found the moment where he spit out his coffee.
BILL HINMAN QUOTE:
“You know, with respect to Ethereum one of the things that was somewhat compelling was it was fairly… pic.twitter.com/URbNL2VajZ
— John E Deaton (@JohnEDeaton1) June 16, 2023
Hinman Praises Ethereum
Deaton’s tweet series began with a tantalizing moment from the deposition that supposedly made Ripple’s General Counsel Stuart Alderoty “spit out his coffee.” This phrase is often used to depict a reaction to a surprising or humorous remark.
The highlight of this tweet was Hinman’s remark about Ethereum being “fairly transparent,” a statement that evidently struck a chord with Alderoty. Hinman was quoted as saying, “You know, with respect to Ethereum, one of the things that were somewhat compelling was [the fact that] it was fairly transparent.”
Did Hinman Mislead During His Deposition?
Deaton has been actively sharing excerpts from Hinman’s deposition on his Twitter handle, sparking discussions and debates among the crypto community. In a startling revelation, Deaton suggested that Hinman may have misled the court, despite being under oath.
In one segment of the transcript, Hinman was asked by Ripple’s attorneys if he discussed the substance of his June 14, 2018, speech with anyone outside the SEC. Hinman’s response was a straightforward “No, not on the substance.”
However, this claim seems to be contradicted by a set of emails recently released. These emails show that Hinman had scheduled a meeting with Ethereum’s co-founder Vitalik Buterin in the days leading up to his speech. According to Deaton, Hinman informed SEC officials that the meeting with Buterin was to gain a better understanding of the Ethereum network.
Intriguingly, shortly after this meeting, Hinman declared ETH, Ethereum’s native asset, as a non-security in his speech at the Yahoo Finance All Markets Summit.