David Schwartz, the CTO of Ripple, recently shared insights into his early investment in Ethereum (ETH) and the reasons behind it. This revelation comes amidst ongoing tensions between Schwartz and Cardano's founder, Charles Hoskinson, surrounding the contentious "ETH Gate" theory.

During a recent interaction, a user questioned Schwartz about his initial involvement in Ethereum and the circumstances that led to his investment. The user also raised concerns about Schwartz's conflicting views on Ethereum, particularly in light of his recent disagreements with Hoskinson. Additionally, they highlighted Schwartz's reference to former SEC Director William Hinman's statement in the context of the ETH gate controversy.

In a revealing tweet from December 2023, Schwartz disclosed that he had acquired 40,000 Ethereum when the price was a mere $1. Subsequently, he sold his entire ETH holdings at that price to fund the installation of solar panels in a property he no longer owns. However, Schwartz expressed deep regret over this decision as the value of his investment skyrocketed by over 250,000%, surpassing $100 million shortly after the sale, resulting in substantial losses for him.

Schwartz's initial foray into Ethereum stemmed from a personal connection with Vitalik Buterin, the co-founder of ETH. Responding to inquiries, the Ripple CTO revealed, "I knew Vitalik. He invited me to participate," explaining his decision to support Buterin by investing 20 BTC, which yielded 40,000 ETH. Schwartz viewed this investment as a gesture of support for an acquaintance without delving into extensive questioning.

The recent disclosure by Schwartz follows a contentious exchange with Hoskinson, centered around differing narratives regarding Ethereum's alleged influence on regulatory bodies, particularly the U.S. Securities and Exchange Commission (SEC), and its potential impact on competing cryptocurrencies like Ripple's XRP.

Hoskinson dismissed claims of Ethereum's involvement in regulatory manipulation as conspiracy theories, emphasizing the need to distinguish between reality and unfounded allegations. In contrast, Schwartz raised questions about former SEC official William Hinman's ties to Ethereum and his potential conflicts of interest, pointing to Hinman's association with Simpson Thacher & Bartlett LLP, a firm linked to Ethereum, as a subject warranting scrutiny in the regulatory domain.