Ethereum Insider Reveals: Ethereum Founders’ Fraud Is 1000x Bigger than FTX Fraud

FTX founder, Sam Bankman-Fried (SBF), is currently facing the consequences of his nefarious actions. As anyone may think that’s the biggest fraud in the history of crypto, an Ethereum insider has recently revealed that Ethereum founders’ (Vitalik Buterin and Joseph Lubin), Fraudulence Is 1000x Bigger than the one perpetrated by SBF.

Steven Nerayoff, attorney and former advisor for Ethereum (ETH), has recently posted an appalling piece about Ether and its founders on X.

The lawyer who gained his close knowledge of Ethereum while working for the blockchain network shared the alleged fraudulent actions of Vitalik Buterin and Joseph Lubin.

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According to Nerayoff, these founders allegedly carried out fraudulent activities that beat the scale of crime committed by FTX founder, Sam Bankman-Fried, in 1000 folds.

FTX, involving its founder SBF, has been in the news for about a year. The case is currently seen as the biggest fraud in cryptocurrency history. About $10 billion in customers’ assets were mismanaged in FTX accounts, while millions were sent to another company owned by SBF, Alameda Research.

FTX founder was found guilty on all seven federal counts which could potentially lead to a maximum sentence of 110 years in prison.

SBF was charged with money laundering, wire fraud, securities fraud, and other counts related to the alleged misuse of customer funds from FTX to support his other firm, Alameda Research. A jury quickly reached a verdict, holding him responsible for the disappearance of $10 billion in customer funds.

Read Also: Vitalik Buterin Sends $1 Million in ETH to Coinbase, Sparks Speculation

Although Nerayoff has not presented any tangible evidence to nail the Ethereum founders for their alleged fraudulent activities, this is not the first time he’s accused the founders of corruption. In September, he accused Vitalik and his father, Dmitry of an attempt to destroy his reputation by accusing him of ETH ICO extortion.

Nerayoff also revealed that both Vitalik and Lubin have been allegedly conniving with corrupt officials from federal agencies. He mentioned current and former SEC Chairmen Gary Gensler and Jay Clayton as those Ethereum may have had secret dealings with.

Steven Nerayoff tweeted, “Ethereum is the fraudulent elephant in the room in plain sight 1000x bigger than SBF. Joe Lubin & Vitalik Buterin have been the front with corrupt officials at the highest levels of federal agencies such as Clayton, Gensler & many others. Cover this now.”

These allegations show that the corruption resonating in the Ethereum network has given the project an upper hand over other crypto projects. However, since there is no concrete evidence provided, his claims remain allegations that don’t hold water.

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