Steven Nerayoff, a former advisor within Ethereum, publicly accused the founders of Ethereum of fraud. According to his allegations, Vitalik Buterin and Joseph Lubin, two emblematic figures of the crypto industry, would carry out fraudulent activities 1000 times larger than that of SBF. The now-convicted founder of FTX orchestrated one of the largest financial frauds in American history. But what are the reasons behind these accusations? Let’s find out.
Ethereum founders accused of fraud
Steven Nerayoff said on X (Twitter) that fraud on Ethereum is 1000 times larger than that of SBF. As a reminder, the FTX affair is one of the biggest financial frauds in the crypto industry. Sam Bankman-Fried has been involved in numerous crimes, including embezzling funds from clients and lenders. Which led to the fall of his crypto exchange FTX and his trading company Alameda Research.
The FTX founder was convicted on all seven federal counts and faces a maximum sentence of 110 years in prison. He has been accused of money laundering, securities fraud, wire fraud and more. Given the fraud committed by SBF, it is difficult to imagine worse. And yet, Steven Nerayoff claims the opposite, revealing that the founders of Ethereum are big frauds.
Allegations of corruption within the SEC
According to this former Ethereum advisor, Ethereum founders allegedly bribed SEC officials. Joseph Lubin and Vitalik Buterin served as cover for corrupt officials at the highest levels of federal agencies. He notably cited Clayton, Gensler and many others. This would have given the project an unfair advantage in the crypto market. Ethereum executives gave bribes to the SEC to turn a blind eye to the network’s ICO, did he declare. Ethereum can thus escape accusations of violating securities law.
However, Nerayoff did not provide no substantial evidence to support his allegations against the founders of Ethereum (ETH). In addition, his reputation for distorting the truth harms the credibility of his information.
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