In recent weeks, Ethereum and its founders have faced a range of allegations including fraud and claims that the blockchain is controlled by Chinese interests.
One of the vocal figures in this discussion is on-chain investigator Boring Sleuth, who has suggested that the Ethereum network may be dominated by Chinese investors. The most recent development is an investigation shared by the investigator, aiming to shed light on the extent of Chinese influence on the blockchain.
Chinese Investors Hold the Majority of ETH
According to the investigation shared by Boring Sleuth, it appears that a significant portion of the ETH supply may be controlled by Chinese investors. This is purportedly due to Ethereum founder Vitalik Buterin’s focus on attracting Chinese investments during the network’s early days.
Reportedly, Buterin made multiple trips to China to meet with investors, even learning Mandarin to deliver a keynote speech. He also met with Deng Chao, an investment manager at the Chinese Wanxiang Group, where Buterin had previously held the position of chief scientist.
The report also suggests that investors were able to bypass Ethereum’s ICO limits due to lax enforcement. Furthermore, Chinese investors allegedly wielded considerable influence in significant decisions, including the response to the Ethereum hack and the subsequent hard fork that led to a network split.
Boring Sleuth asserts that Buterin’s official wallets received funding from Wanxiang Group. Additionally, the Ethereum founder had previous employment at Fenbushi Capital and continues to serve as an advisor following his departure.
Challenges Mount for Ethereum Founders
Beyond the allegations of ties to China, Ethereum and its founders face more serious accusations. Former network advisor Steven Nerayoff claims to have evidence of fraudulent activities by co-founders Vitalik Buterin and Joseph Lubin. Nerayoff has also accused the founders of attempting to falsely incriminate him and has vowed to expose them.
Nerayoff has announced plans to release this evidence, stating that it should be made public within 48 hours or even sooner. While the nature of this evidence remains undisclosed, if it substantiates Nerayoff’s claims, it could have severe repercussions on the price of ETH and could potentially trigger a market downturn.
Image Source: CK Foto @ Shutterstock
