Steven Nerayoff, Former Ethereum Advisor Accuses Ethereum of Fraud

Steven Nerayoff was one of the first advisors to Ethereum (before its creation) and his latest allegations are shaking up the crypto industry. He took talk about (formerly Twitter) to announce its potentially explosive revelations about Ethereum. He claims to have information that could change the entire public perception around Ethereum since its origins.

Nerayoff said: “The time has come for terrifying revelations from the once untouchable powers: […] The most powerful forces on the planet sought to silence us by maliciously targeting me, believing that this would silence me. Despite their extreme power and vast resources, we emerged victorious […] The world is about to discover what we have assembled as evidence starting tomorrow. Brace yourselves: Yesterday’s perception will be radically altered. The world as we know it is about to change.”

It is from here that the case called the "ETH Gate" takes a new turn with other investigators ready to seek out and expose the truth of Nerayoff's statements.

THE TIME HAS COME FOR THE EARTH-SHATTERING REVELATIONS OF FORMERLY UNTOUCHABLE POWERS:

The battle has been long, but it's a testament to how far we have come from where we started. The most powerful forces on the planet sought to suppress us by maliciously targeting me, thinking… pic.twitter.com/CvGkzkFhFg

—Steven Nerayoff (@StevenNerayoff) April 3, 2024

Accusations of fraud and embezzlement

LNerayoff has made several serious accusations against Vitalik Buterin, Joe Lubin, and the Ethereum Foundation, painting a complex picture of alleged wrongdoing and fraud within the ETH ecosystem. These allegations cover various aspects of Ethereum’s development and operations, including fraudulent ICOs, personal wrongdoing, and collusion with “corrupt” SEC officials (among others). Among the SEC officials, Gary Gensler, and former SEC Chairman Jay Clayton are said to be the main ones involved.

He suggests that these connections have given ETH an unfair advantage in the crypto space, protecting them from new SEC regulations.

Nerayoff accuses Buterin and Lubin (Ethereum's best-known founders) of orchestrating large-scale fraud within Ethereum, alleging their involvement in issuing fraudulent ICOs to defraud investors.

He says this business was the primary business model for Lubin's company, ConsenSys, in the early days. Nerayoff argues that the fraudulent activities surrounding ETH are much more important than those in the FTX case, calling Ethereum a “fraudulent elephant in the room.”

The participation of the “Chinese Communist Party” in Ethereum

Other accusations of Nerayoff consist of revealing that the Chinese Communist Party (CCP) would own a substantial stake in Ethereum, putting the entire cryptocurrency world at risk.

According to sources, “Historical accounts reveal that in 2015, Vitalik Buterin, the founder of Ethereum, contacted Wanxiang’s investment manager Deng Chao while seeking funding for the project. Chao, impressed by the innovative concept, convinced his superiors to invest approximately $500 in Ether. This investment, based on the price of Ether at the time, would have resulted in the acquisition of approximately 000 ETH, a considerable holding even by cryptocurrency standards.”

TruthLabs suggests that Chinese entities close to the CCP control nearly 80% of ETH mined, raising concerns about the potential for centralized control over the Ethereum network.

The affair of the Ethereum Foundation and the Gatecoin hack

TruthLabs and Steven Nerayoff presented evidence suggesting the Ethereum Foundation's connection to the Gatecoin hack that took place in 2016, where 185 ETH was stolen. This investigation uncovered transactions from the Foundation to wallets directly involved in the hack, raising serious questions about the Foundation's role and motivations during this period.

The discredits of Nerayoff

It is important to remember that the Ethereum Foundation stated in 2017 that "Mr. Nerayoff has never been a director, employee, advisor, or held any other position in the Ethereum Foundation." However, Nerayoff daily that he created the ICO, signed the documents, paid the expenses, hosted Vitalik Buterin and rented an office for Ethereum with his own money. He says he has evidence and audio recordings.

Recently, Nerayoff's trial accusing him of extortion was canceled due to lack of evidence. According to CoinDesk, "The government's charges against Nerayoff were dropped in May 2023. Two months earlier, prosecutors decided to end the case, admitting that they had obtained material exculpatory evidence and were unable to prove the charges in the indictment beyond a reasonable doubt."

Final word

It is important to note that these allegations although sensational are part of an ongoing dispute and have not been supported by concrete evidence in the public domain until now. However, investigators like James O'Keefe took up the case. Today, the situation is extremely complex because we do not have all the information (justice requires) to deal with the elements as best as possible. Between conspiracy theory and approved allegations, it remains difficult to understand the twists and turns of the case.

However, ETH Gate is not ready to stop making headlines.