Former ethereum advisor Steven Nerayoff, who is currently preparing a lawsuit against ethereum founders Vitalik Buterin and Joseph Lubin, has revealed a pivotal decision from his past. In a detailed statement on X (formerly Twitter), Nerayoff claims that he had rejected an allocation of over 1 million Ether (eth). This decision, according to Nerayoff, arose from his commitment to avoiding conflicts of interest and his vision for ethereum, which, according to him, diverges from the current trajectory set by its founders.
Why The ethereum Insider Rejected 1 Million eth
In a candid post on X (formerly Twitter), Nerayoff stated: “OVER 1 MILLION ETHER: This is what I care about. I would have over 1 million Ether if I didn't decline my contribution, was reimbursed for expenses incurred in Ether, and chose not to invest in the ICO to avoid a conflict. I don't regret it for a second. “It’s not what I signed up for.”
Nerayoff attributed the rise in Ether price to the initial coin offering (ICO) and utility token model, which he said were instrumental in funding numerous projects on the ethereum platform. Despite his contributions, he expressed his discontent with the current state of ethereum and emphasized that a focus on decentralized applications (DApps) could have further improved the value of Ether.
“But I don't say that to brag because I'm not happy, that's why it's valuable. If they had focused on DAPPs, the world would have changed, PLUS Ether would be much more valuable. They have damaged the value of Ether. It’s just that people don’t realize how much more valuable it would be today if they did what they said and created a truly decentralized, scalable smart contract platform,” he further stated.
Nerayoff's comments shed light on a significant divergence in vision between him and ethereum leadership. He also shared the rejection of his Ether allocation and expense reimbursement, highlighting his focus on changing the world rather than his personal benefit, unlike Buterin and Lubin. “I cared deeply about changing the world, not Vitalik & Lubin's insatiable appetite for money and power,” he concluded his statement.
Nerayoff presents evidence of his claims
To substantiate his claims, Nerayoff published communications with ethereum co-founder Ethan Wilding and former ethereum chief communications officer (CCO) Stephan Tual. These communications date back to 2014 and 2015 and revolve around the ethereum endowment and the allocation of Ether to Nerayoff.
OVER 1 MILLION ETHER: This is what matters to me. I would have over 1 million Ether if I didn't decline my contribution, was reimbursed in ether, and chose not to invest in the ICO to avoid a conflict. I don't regret it for a second. It's not what I registered… pic.twitter.com/nWzAH2dlHM
– Steven Nerayoff (@StevenNerayoff) January 13, 2024
In an email dated March 12, 2015, from Ethan Wilding, he acknowledges Nerayoff's decision to direct his Ether allocation elsewhere. Nerayoff's response underscores his dedication to the project with no expectation of financial return:
I see. I was truly here to help the cause and continue to do so. As such, he expected nothing in return. I donated, and continue to do so when asked, my time and passion to the project.
Additionally, in communication with Stephan Tual, Nerayoff discusses his financial support for ethereum, emphasizing his commitment without seeking reimbursement:
No, this was not approved, although I spoke at length with Joe (Lubin) about it. The problem is that it was the last big office space (…) and creating a community that will be very beneficial for ethereum NYC. Right now I'm paying for it out of pocket… I guess I consider this my gift for now. ethereum (along with the opinion letter) and whatever the future holds is fine with me as long as we are successful.
These revelations come amid Nerayoff's ongoing preparations for his legal battle with Buterin and Lubin, in which he wants to prove fraud against them. Notably, it is not yet known when Nerayoff will file the lawsuit.
In recent months, Nerayoff has made repeated revelations and accusations against Buterin and Lubin. His claims that ethereum is a bigger scam than FTX and that the DAO hack was an inside job have caused a particular stir.
At press time, eth was trading at $2,515.
Featured image from WJAR, chart from TradingView.com
