February 29, 2024

Ethereum Insider Reveals Progress On ETH Fraud Lawsuit

Steven Nerayoff, an early advisor to Ethereum, has provided an update regarding his much-anticipated lawsuit against the co-founders Vitalik Buterin, Joseph Lubin, and the Ethereum Foundation. The lawsuit, rooted in allegations of corruption and fraudulent activities, is gaining attention for its potential impact on the ETH ecosystem.

Nerayoff’s involvement with Ethereum dates back to its early days, and his insider perspective lends weight to his claims. In response to a community member’s inquiry about the lawsuit’s progress, Nerayoff said,

We are working on it. The scope keeps getting bigger. It’s a monster & complicated. It’s my focus every day and it’s become far more compelling. Nobody is more impatient than me it’s driving me mad & costing me a fortune but it has to be done right.

Further deepening the case, Nerayoff has joined forces with TruthLabs (@BoringSleuth), a recognized on-chain sleuth, to unearth on-chain evidence that allegedly implicates Buterin, Lubin, and the Ethereum Foundation in fraudulent activities. Nerayoff recently commented, “We are filing a wrongful prosecution lawsuit. But in it, I’ll be filing other aspects. We will also be making incriminating evidence from me @BoringSleuth and others public.”

As reported by Bitcoinist, TruthLabs found evidence that the ETH Foundation was involved in the Gatecoin hack in 2016, which resulted in a loss of 185,000 ETH and 250 BTC. Nerayoff is also in contact with other Ethereum insiders who can provide damning evidence of the alleged fraudulent activity.

In a detailed statement on X (previously Twitter), Nerayoff accused the ETH co-founders of opting for silence in response to these allegations, a strategy he interprets as an admission of guilt.

He asserted, “So why are they silent now that specific allegations with receipts or on-chain data have been made by me & @BoringSleuth? Because legal advice for criminals guilty of massive crimes is to remain silent. Vitalik, Lubin & others will be casualties. Those above will sacrifice them.”

Ethereum Foundation Faces Another Eye-Catching Lawsuit

Simultaneously, another legal battle involving the Ethereum Foundation is unfolding. Joel Dietz, who has also been deeply involved in the early days of ETH, alleging a breach of partnership and deceit, has filed a lawsuit over the development and subsequent handling of MetaMask, a widely-used cryptocurrency wallet. According to Dietz, his partner Aaron Davis secretly continued to develop and profit from the project without notifying other partners.

Nerayoff, expressing solidarity with Dietz, commented, “I’m very close friends with Joel Dietz & we were both at Ethereum in 2014. I believe Joel’s claim as co-founder of MetaMask. Joel is brilliant & honest. Lubin is stupid & crooked. Lubin is trying to write him out of its history just like he did with me & Ethereum. #TheLubinPlaybook”

The crypto community is closely watching these developments. The lawsuits could have far-reaching implications, not just for the individuals and entities involved, but also for the governance and ethical standards within the Ethereum ecosystem.

At press time, ETH traded at $2,313.

Ethereum price
ETH price remains in the consolidation range, 1-week chart | Source: ETHUSD on TradingView.com

Featured image from YouTube / CryptoLaw TV, chart from TradingView.com

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