Steven Nerayoff, an attorney and former advisor to Ethereum (ETH), has made a series of alarming allegations against the platform’s founders, Vitalik Buterin and Joseph Lubin. As per a report from Bitcoinist, Nerayoff asserts that the extent of fraud in the Ethereum ecosystem surpasses the scale of the infamous FTX scandal involving Sam Bankman-Fried.

Nerayoff, in a statement, emphasized the severity of the alleged fraud, saying, “Ethereum is the fraudulent elephant in the room in plain sight 1000x bigger than SBF.”

His comments come as part of a broader campaign where he has been hinting at the release of evidence implicating Buterin and Lubin in significant fraudulent activities.

Alleged Ethereum Fraud Evidence To Be Published Soon

For months, Nerayoff has been hinting at his efforts to compile and publish evidence that could heavily implicate Ethereum founders Vitalik Buterin and Joe Lubin. His recent statements indicate a nearing culmination of these efforts.

He remarked on X:

We are making a lot of progress. Information should start flowing within weeks not months. My intent is to make everything I can public which I can. Each can decide for themself. I created another platform that can’t be censored so I’ll publish here & there.

In a series of subsequent posts, Nerayoff addressed the skepticism surrounding his claims with a defiant tone. He emphasized his contributions and integrity in the crypto space, particularly highlighting his resilience in the face of what he describes as false prosecution.

“I do not care if you don’t believe anything. I have done more in this space & shown a level of integrity through this false prosecution that hardly anyone can match,” he asserted. His statements reflect a deep conviction in the truth of his allegations after US prosecutors dropped the extortion charges against him in May this year.

Nerayoff also made significant claims about his role in the creation of Ethereum’s ecosystem, accusing Buterin and Lubin of exploiting his contributions for personal gain. “Ethereum’s ecosystem would not exist if not for my inventions… Lubin & Vitalik held back crypto to benefit themselves,” he claimed, suggesting a betrayal of the initial vision for the cryptocurrency.

He further addressed the response to his accusations, interpreting the lack of rebuttal from the accused parties as an implicit admission of guilt. “The silence is clear confirmation I’m right over the target,” Nerayoff stated, pointing to the absence of public comments or denials from those he has accused.

He stated:

They are pure thugs. A gang less sophisticated and principled than the mafia. All of Joe & Vitalik’s trash talking. Where is Andrew Keys or Bill Hughes? Laura Shin? Hell, even the government officials. I’ve called out several dozen people with serious accusations. You know how I’m right is you haven’t heard a damn word out of any of them & this is getting louder.

The Essence of Steven Nerayoff’s Allegations

Steven Nerayoff’s allegations encompass a wide range of serious claims against the Ethereum founders and the US Securities and Exchange Commission (SEC). He accuses Buterin and Lubin of engaging in fraudulent activities that overshadow the FTX scandal, potentially jeopardizing Ethereum’s integrity. Nerayoff has also claimed that these founders orchestrated a smear campaign against him, linking him to an Ethereum ICO-related extortion scheme.

A central theme of Nerayoff’s allegations is the purported collusion between Lubin, Buterin, and high-ranking officials in the US financial regulatory sphere, including SEC Chair Gary Gensler and former Chair Jay Clayton. He accuses them of using these connections to unfairly favor Ethereum in the crypto market.

Additionally, Nerayoff alleges that the SEC used him to target specific individuals within the crypto community, implying a broader conspiracy against key crypto figures. His portrayal of his legal battles over the past three and a half years as part of a deliberate prosecution effort by the SEC adds another layer to his extensive claims.

At press time, ETH traded at $1,881.