Former Ethereum advisor Steven Nerayoff has made another explosive allegation against Ethereum co-founders Vitalik Buterin and Joseph Lubin.
Nerayoff claims that the duo engaged in sabotage, fraudulent initial coin offerings (ICOs), and undisclosed dealings with the U.S. Securities and Exchange Commission (SEC) in an attempt to manipulate regulatory decisions in favor of Ethereum.
Did Vitalik invent anything? No he did not. Ethereum never scaled bc of him. Only killer app was issuing Utility Tokens on ICOs both of which I invented. Vitalik & Lubin sabotaged crypto. Their focus was merely to issue hundreds or thousands of fraudulent ICOs fleecing people.
— Steven Nerayoff (@StevenNerayoff) November 14, 2023
Accusations Rock the Cryptocurrency Community
Nerayoff’s claims, which he shared through multiple posts on the social media platform “X” and during an episode of the blockchain podcast channel Crypto Town Hall, have captivated industry insiders and enthusiasts alike.
These allegations, supported by recordings that Nerayoff claims to possess, offer a potential glimpse into a hidden side of Ethereum’s early days.
During his appearance on the podcast, Nerayoff asserted that Buterin and Lubin engaged in undisclosed dealings with government officials, specifically the SEC.
According to Nerayoff, the purpose behind these secret engagements was to influence regulatory decisions in favor of Ethereum. If proven true, these allegations could have far-reaching consequences for the cryptocurrency industry as a whole.
ETH Gate Scandal Resurfaces
The scandal revolves around allegations of a pre-sale of a substantial amount of ETH to a select group of individuals, raising concerns about fairness and potential insider trading. Nerayoff’s accusations suggest that there may be some truth to these rumors.
Buterin’s Role in Ethereum’s Scaling Challenges
In addition to the allegations against Lubin, Nerayoff specifically targeted Buterin for his role in Ethereum’s scaling difficulties.
Nerayoff contends that Buterin’s decision-making hindered the network’s ability to effectively handle increasing transaction volumes and address scalability issues. These claims raise questions about the leadership and decision-making within the Ethereum project.
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Origins of Utility Tokens Through ICOs
Nerayoff further asserts that the creation of utility tokens through ICOs, a concept that has become synonymous with Ethereum, originated from his own ideas. This accusation challenges the narrative surrounding the genesis of utility tokens on the Ethereum network and potentially reshapes the understanding of Ethereum’s early milestones.
To substantiate his claims, Nerayoff has announced his intention to release the recordings he allegedly possesses. He describes these recordings as “a rare, unedited historical view into what was really happening” during the early days of Ethereum.
According to Nerayoff, these recordings could shed light on key decisions that have shaped the trajectory of the cryptocurrency industry.
However, despite the community’s anticipation, Nerayoff has not yet released the recordings. He cites logistical reasons and the setup process for “smart NFTs” (Non-Fungible Tokens) as the cause for the delay. Nonetheless, he remains committed to making the recordings public.