Former Ethereum Advisor Accuses Vitalik Buterin of Scam “1000 Times Bigger Than FTX”

Vitalik Buterin, creator of Ethereum.  Source: YouTube/Reproduction.
Vitalik Buterin, creator of Ethereum. Source: YouTube/Reproduction.

Steven Nerayoff, an old name in the Ethereum universe, is causing a stir on social media by announcing his intention to alleged fraud schemes involving co-founders of the second largest cryptocurrency on the market, Vitalik Buterin and Joseph Lubin.

The allegations, which have sparked intense debate in the cryptocurrency community, will be detailed in the coming weeks.

Nerayoff, who served as an advisor for Ethereum, declared that your legal team ensures that information about the fraud allegations is appropriately disclosed.

He also said he has developed a platform that allows evidence to be disseminated in a non-offensive manner. “It is my intention to make public everything I can.”said Nerayoff on X (Twitter).

Ethereum creators are accused of fraud

The allegations first emerged in a post on X, following the conviction of FTX founder Sam Bankman-Fried on fraud and conspiracy charges. Nerayoff accused Ethereum’s founders of being directly involved with corrupt US government officials.

“I believe these corrupt government officials will be exposed”he claimed.

Nerayoff continued his accusations, comparing Buterin and Lubin’s alleged fraudulent activities to that of Sam Bankman-Fried. He described the Ethereum case as one “fraudulent elephant in the room”insinuating that the fraud committed by Ethereum’s co-founders would be more serious than that of Bankman-Fried.

“Ethereum is the fraudulent elephant in the room in plain sight, a scam 1000 times bigger than SBF”, he said Nerayoff.

He cited connections between senior US government officials and Ethereum executives, implying possible cases of bribery for advantages in the cryptocurrency market.

According to him, the creators of Ethereum allegedly offered money to the US Securities and Exchange Commission, the SEC, to bypass the network’s initial coin offering (ICO).which may violate securities laws.

Countdown to chaos?

Although the cryptocurrency community is curious about the proof promised by Nerayoff, it seems skeptical about the case. Some are questioning the former digital currency advisor’s motivations, wondering whether his actions are motivated by revenge or a desire to gain fame.

In response to these questions, Nerayoff’s lawyer Michael Scotto assured the existence of a case and promised to release evidence soon.

Nerayoff responded to questions by stating that the legal process is in the hands of his legal team and would not be published on X for legal reasons. “For those who say they haven’t seen anything yet, you’re either trolling or blind.”he said.

Moreover, in a huge post on

He emphasized that his accusations are not for his own benefit, but rather intended to warn and protect investors. “This makes me a target and hated by many people.”he explained.

However, Nerayoff’s credibility has been questioned due to his reputation for sometimes distorting the truth. He once called himself one of the co-creators of Ethereum, a claim that has been refuted by other blockchain developers.

Amid these accusations, investors are eagerly awaiting the evidence promised by Nerayoff. If the allegations are proven, they could have significant consequences for Ethereum and its founders, as well as impact public perception of the platform’s integrity.

Meanwhile, a video that appeared on social media revealed worrying information about Vitalik Buterin. In the video, Ethereum’s founder admitted to selling around 70,000 ethers during the cryptocurrency’s price peak.

The revelation came to light via a video on Twitter, in which Buterin discussed the price volatility of Ethereum and Bitcoin.

In the podcast with Eric Ross Weinstein, director of an American hedge fund, Buterin expressed doubts about the alignment of the market value of cryptocurrencies with their actual performance.

During the 2017 bull run, when the price of Ethereum reached $1,600 and Bitcoin reached $20,000, Buterin wondered whether the cryptocurrency market, valued at half a trillion dollars at the time, really deserved that valuation. “The market has reached half a trillion dollars, does it deserve that?” he asked Buterine.

The conversation revealed that Buterin convinced the Ethereum Foundation to sell a large amount of ethers at the peak of the market, a decision that later had a significant impact.

“I pushed the Ethereum Foundation to essentially sell 70,000 ETH at the top, and that now doubled our path, so it was a good decision that had a lot of impact”Buterin explained.

The revelation raised concerns among investors, especially in light of Buterin’s recent transactions. He was seen transferring 100 ETH, worth approximately $181,000, to Coinbase, one of the largest exchanges in the US.

In August, a transfer of 600 ETH, equivalent to $1 million, to the same exchange was also carried out by Buterin.

Despite these transactions, Buterin said in October that he has not sold Ethereum for personal gain since 2018 and that the majority of transactions were actually charitable donations.

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Source: Live Coins