Ethereum Founders Indicted, Compared To FTX Fraud

Ethereum Founders Indicted, Compared To FTX Fraud

An Ethereum insider has come forward with claims that the alleged fraud committed by the Ethereum founders surpasses the FTX exchange scandal, which recently saw millions of customer funds transferred into a subsidiary company.

The funds were traced to Alameda Research, a Bankman-owned subsidiary, which further indicted Mr. Sam. A whole new chapter in the ongoing FTX dispute has been started by the statements made by the Ethereum insider.

According to the whistleblower, the size and complexity of the wrongdoing surrounding Ethereum’s foundation surpass those of the FTX incident. As of press time, the cryptocurrency world is anxiously expecting further information and specifics about these allegations.

Experts Comment On The Development, As Ethereum Price Maintains Stance

Prominent key players in the cryptocurrency industry have started commenting on the development. According to Scott Matherson, a journalist with Bitcoinist, “If the claims of fraud against the founders of Ethereum turn out to be accurate, the cryptocurrency industry may experience significant changes.”

Scott added that a complete investigation and due procedure are still required to ascertain the entire scope of the allegations and their validity. The possible legal ramifications for FTX founder Sam Bankman-Fried are substantial. The seriousness of the matter is underscored by the charges, which carry a potential prison sentence of more than 100 years.

The FTX scandal legal proceedings are still in progress, with investigators and regulatory bodies closely examining the evidence. Meanwhile, the price of Ethereum has continued to rise 24 hours after the development made the news.

As of press time, the price of Ethereum is trading at $1,880.19, a 2.46% increase in the last 24 hours. This is reflected in its market capitalization, which increased by 2.46% to reach $226,128,175,733. Eth trading volume increased by 20.63% to hit $7,103,751,818 after maintaining a circulating supply of 120,268,913 ETH.

Informants Say Ethereum Connected To Corrupt United States Officials

It was gathered that an informant in Ethereum accused the company of executing illegal deals for some high-ranking corrupt U.S. politicians. The statement, as published by Bitcoinist, says that these accused officials engaged in schemes bigger than Sam Fried’s fraud case.

Steven Nerayoff, one of the whistleblowers and former Ethereum Advisor, in one of his posts on X social media platform, revealed that Ethereum founders Vitalik Buterin and  Joseph Lubin have been working with some corrupt United States government workers from the topmost government agencies.

Nerayoff, in his X post called Ethereum the “big fraud elephant in the room,” claiming that they have carried out fraud that are one thousand time bigger than Sam Fried’s FTX.  Nerayoff added in his exposition that these corrupt government officials are likely having secret illegal deals with these corrupt governments in the U.S. Securities and Exchange Commission (SEC).

He also indicted Gary Gensler, the present SEC boss, and  Jay Clayton, the past chairman of the SEC, who served from 2017-2020. The accusation by Nerayoff is yet to be proven, although questions have started popping up in the cryptocurrency community about how true Nerayoff’s claims are.

Sam was found guilty by a 12-member jury in a federal court in Manhattan. Sam was found guilty of all the 7-count charges after a month trial where the prosecutors insisted that he embezzled $8 billion from the defunct FTX exchange, a situation that was proven to be done out of greed.

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Jesse Rosenbalm
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Jesse Rosenbalm

Jesse Rosenbalm stands out in the crypto journalism realm, seamlessly blending intricate blockchain concepts with accessible prose. Known for his deep dives and accurate forecasting, Jesse's articles are a must-read for both novices and experts. As crypto trends shift, his insightful writings remain a beacon in the digital currency space.

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