Steven Nerayoff, an early ethereum advisor, has had several debates and discussions about ethereum in recent weeks. The cryptocurrency company’s former lawyer has never abandoned his position that Vitalik Buterin and Joseph Lubin, the co-founders of ethereum, engaged in fraudulent activity during the network’s early days and that the SEC was corrupt in its dealings with ethereum.
While speaking in a space hosted On social media platform X, Nerayoff revealed that he has recorded evidence that could heavily implicate ethereum co-founder Vitalik Buterin.
Former ethereum advisor claims to have evidence of fraud
Nerayoff has always claimed that the scope of fraud in the early days of the ethereum ecosystem exceeds the scale of the FTX scandal, which led to the exchange’s bankruptcy. This saga has continued in this high-stakes battle over the transparency and decentralization of one of the largest crypto ecosystems.
Nerayoff had initially been speaking with other speakers on the podcast about the SEC’s plan to ultimately decide who and what becomes a security in the crypto industry before changing topics to the ETHGate scandal.
According to Nerayoff, the ethereum Foundation ran into trouble in 2015 as it actually seemed like it was going under. Buterin reportedly turned to Nerayoff for help in saving and restructuring the foundation, as he had created the utility token and ICO for eth.
Nerayoff mentioned that this conversation with Vitalik lasted up to three hours, he had it recorded and it is ready to be published as a free nft and transcript in the next four or five days.
“So he asked me to restructure the entire ethereum Foundation to save it and I have it all recorded. I’m going to leave it. We are doing it as an nft. It’s free, but everyone can have it,” she said.
The former ethereum advisor also talked about how theethereum–eth-gate-explained/” rel=”nofollow noopener” target=”_blank”> The SEC basically gave a free pass to ethereum in the middle of the ethereum/cardano-founder-ethgate-ethereum/” rel=”nofollow noopener” target=”_blank”>eth Gate Scandal. The SEC had initially considered the eth utility token a security before former director Will Hinman gave a speech pointing out that btc and eth were decentralized and not securities. On the other hand, the The SEC went after Ripple and XRP over centralization claims.
However, Nerayoff believes that eth was centralized when the speech was given, and neither Joe Lubin nor Vitalik Buterin could boast of its decentralization at the time. Additionally, Nerayoff noted that at the time there was internal documentation indicating that the network had not met the requirements to be decentralized.
Reportedly, only Nerayoff was able to access this internal documentation, leading regulators to pursue him on extortion charges. Prosecutors have since dropped these charges, but Nerayoff claims it was all a setup. He also claimed that the SEC, the FBI and the Department of Justice fabricated the evidence, and it was all done in an attempt to eliminate him.
Nerayoff’s allegations have been explosive and threaten to shake investor confidence in ethereum. Many members of the XRP community ethereum/eth-gate-lubin-piece-of-paper/” rel=”nofollow noopener” target=”_blank”>have also questioned the inconsistencies of the SEC.
Nerayoff did not go into details of his conversation with Buterin and said he was not going to mention which particular laws were violated. Still, he hinted that it contained evidence that ethereum‘s early founders did not believe the network was decentralized at its launch.
The release of Nerayoff’s recording could lead to legal action against Buterin and other eth founders. When asked if the evidence recorded from him could lead to criminal charges for Buterin and Lubin, Nerayoff said that is up to the SEC and the Department of Justice.
<img decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2023/11/Ethereum-Insider-Ready-for-Battle-ETH-Founders-Fraud-Proof-Coming" alt="Tradingview.com ethereum Price Chart (Steven Nerayoff, ethereum Expert)” width=”1946″ height=”1686″/>
eth bulls still holding price steady above $2,000 | Source: ETHUSD on Tradingview.com
Featured image from Cryptopolitan, chart from Tradingview.com
