Ethereum Insider Drops Bombshell: ETH Founders’ Fraud Bigger Than FTX Fraud – Updated

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Update: Former Ethereum lawyer Steven Nerayoff has said that he plans to begin dropping proof to back up his claims that there is a massive fraud at the center of the second-largest blockchain network in the world in less than a week.

Speaking on the Crypto Town Hall show, Nerayoff answered a question from Mario Nawfal asking when he was dropping the proof with “In like the next four or five days.”

All eyes in the crypto industry are resting on Nerayoff right now as investors actively anticipate what the Ethereum insider will reveal. Nerayoff has also accused the execs of the crypto giant of trying to frame him in the past, adding even more mystery to an already puzzling situation.

An Ethereum insider has made allegations against Ethereum’s founders, claiming that their fraudulent activities far surpass those seen in the notorious FTX fraud case. 

Ethereum’s Credibility Under Spotlight

Attorney and former Advisor for ETH, Steven Nerayoff recently published a shocking piece about Ethereum in an X (formerly Twitter) post on Thursday. 

The lawyer who has personal knowledge of ETH having worked for the blockchain network previously, has come forward with explosive allegations regarding the actions of Ethereum founders, Vitalik Buterin, and Joseph Lubin.

According to Nerayoff, these two Ethereum founders have allegedly orchestrated fraudulent activities regarding the ETH blockchain that exceed the scale of the actions committed by Former CEO and founder of FTX, Sam Bankman-Fried. 

“Ethereum is the fraudulent elephant in the room in plain sight 1000x bigger than SBF,” Nerayoff stated. 

The FTX case which has been in the headlines for about a year was one of the leading crypto fraud cases which resulted in the financial loss of many investors. About $8 billion in customer funds were found misappropriated in FTX accounts and millions were transferred into a subsidiary company, Alameda Research owned by Bankman-Fried. 

The founder of FTX was recently found guilty on all seven charges of fraud and conspiracy on Thursday. Bankman-Fried also stands to serve potentially over 100 years in prison which is the amount the charges lead to. 

Nerayoff has not provided any concrete evidence to support his claims against ETH founders’ alleged fraudulent activities. But this is also not the lawyer’s first time targeting ETH founders with corrupt accusations. 

Earlier in September, the former Ethereum advisor accused Vitalik Buterin and his father, Dmitry Buterin of a combined effort to ruin his reputation by accusing him of the extortion of an ETH ICO. 

Insider Says ETH Linked With Corrupt US Officials

Following his statement of Ethereum allegedly being involved in fraudulent schemes higher than Sam Bankman-Fried’s FTX fraud case, Steven Nerayoff disclosed that founders Joseph Lubin and Vitalik Buterin have allegedly been colluding with corrupt US government officials from some of the highest federal agencies. 

The former advisor mentioned prominent government figures that Ethereum may have had secret dealings with including present United States Securities and Exchange Commission (SEC) Chairman, Gary Gensler and former US SEC Chairperson Jay Clayton. 

“Joe Lubin and Vitalik Buterin have been at the front with corrupt officials at the highest levels of federal agencies such as Clayton, Gensler & many others,” Nerayoff said. 

Nerayoff’s allegations suggest that Ethereum’s corruption runs deep and high, allowing the platform to have an unfair advantage in the crypto space. The claims which are yet to be verified, have raised questions and concerns among many crypto community members. 

Ethereum price chart from

ETH bulls maintain control | Source: ETHUSD on

Featured image from CoinGape, chart from

Disclaimer: This article was first posted on November 5 and was updated on November 11 after more information was made available by Steven Nerayoff.

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