In a controversial statement, Samson Mow, CEO of JAN3, known for pioneering the adoption of bitcoin in nation states, sparked intense debate in the cryptocurrency community with his statement on X (formerly Twitter): “ethereum is the next FTX”. This comparison to the infamous crypto exchange that crashed in November 2022 has raised eyebrows and concern, particularly as Mow linked his claim to a tweet from on-chain detective “TruthLabs” (@BoringSleuth).
ethereum is the next FTX. https://t.co/qCqga1Q5XW
– Samson Mow (@Excellion) January 12, 2024
Breaking down the allegations: The connection between Blockchain bandits
TruthLabs' tweet highlights a disturbing connection between a founding eth developer and the enigmatic “Blockchain Bandit,” known for massive cryptocurrency thefts. The researcher's tweet said:
Remember, one of the founding developers of ethereum sent ethereum/Gas to Blockchain Bandit during the period when The Blockchain Bandit was draining the wallets of thousands of normal people who had their crypto (2015/2016) on the ethereum Blockchain. It wasn't until a year later that this exploit was revealed.
This revelation suggests a possible internal link between the initial ethereum development team and the notorious hacker. The researcher further notes that this took place just three months before the DAO exploit, which, according to Hin, “was a complete and demonstrable inside job.”
He added: “What if I told you that the movie made about Blockchain Bandit and Laura Shin's book about the Dao exploit were massive cover-ups so no one would look deeper? “2024 will be the year of the Great crypto Awakening.”
Further intensifying scrutiny, October 2023 TruthLabs say It involved Christoph Jentzsch, a core eth developer and the mind behind The DAO. TruthLabs stated: “Not only did Christoph Jentzsch launch THE DAO, but ANOTHER top ethereum DEV, who had keys to the ethereum Foundations wallets, interacted with THE BLOCKCHAIN BANDIT wallet, BEFORE the DAO hack.”
Steven Nerayoff, former ethereum advisor and self-proclaimed “eth whistleblower,” has voiced outrage at the lack of media coverage of these accusations. His statement about Not a single article about the biggest bomb in the history of cryptocurrencies. “If it’s not true, they could refute it with on-chain data.”
Nerayoff insists that the DAO Hack has “the characteristics and evidence of being an inside job,” and believes the transaction reversal, possible market manipulation, and insider trading point to a broader conspiracy, potentially even a RICO violation. “The chain analysis, along with other evidence, points to individuals within the eth Foundation and http://Slock.It responsible,” Nerayoff stated.
Nerayoff is currently preparing a lawsuit against eth founders Vitalik Buterin and Joseph Lubin for their alleged fraudulent activities. In recent weeks, however, things have become quieter around Nerayoff, who has not yet revealed a date when the lawsuit will be filed.
The Blockchain Bandit and the ethereum DAO Hack
The “Blockchain Bandit” has been a notorious figure in the cryptocurrency world, known for exploiting weak private keys and stealing more than $90 million in cryptocurrency. Despite years of inactivity, the recent movement of stolen funds has revived interest in this case.
Meanwhile, the DAO hack remains one of the largest incidents in cryptocurrency history, where a hacker exploited a smart contract vulnerability in the DAO, leading to the theft of over $50 million in Ether and resulting in a controversial hard fork on the eth blockchain.
Overall, the need for thorough research and clear answers is paramount. Without a doubt, Samson Mow's stark comparison has put ethereum's security, governance, and history under a microscope, and the cryptocurrency world is now awaiting concrete proof or refutations of these serious allegations.
At press time, eth was trading at $2,691.
Featured image from Forbes Colombia, chart from TradingView.com
