In a controversial statement, Samson Mow, CEO of JAN3, known for pioneering nation-state Bitcoin adoption, sparked intense debate in the cryptocurrency community with his assertion on X (formerly Twitter): “Ethereum is the next FTX.” This comparison to the infamous crypto exchange which collapsed in November 2022 has raised eyebrows and concerns, particularly as Mow linked his claim to a tweet by on-chain sleuth “TruthLabs” (@BoringSleuth).
Ethereum is the next FTX. https://t.co/qCqga1Q5XW
— Samson Mow (@Excellion) January 12, 2024
Unpacking The Allegations: The Blockchain Bandit Connection
TruthLabs’ tweet highlights a disturbing connection between a founding ETH developer and the enigmatic “Blockchain Bandit,” known for massive crypto thefts. The researcher’s tweet read:
Remember, one of the Founding Devs of Ethereum sent Ethereum/Gas to the Blockchain Bandit during the period in time in which The Blockchain Bandit was draining thousands of normal people’s wallets holding their Crypto (2015/2016) on the Ethereum Blockchain. It wasn’t until 1 year later that this exploit was revealed.
This revelation suggests a potential inside link between Ethereum’s early development team and the notorious hacker. The researcher further notes that this took place just three months prior to The DAO exploit, which, according to hin, “was a complete, provable, inside job.”
He added, “What if I told you the Movie made on the Blockchain Bandit, the Book by Laura Shin made about the Dao exploit, were both massive coverups so that nobody would look deeper? 2024 will be the year of Crypto’s Grand Awakening.”
Further intensifying the scrutiny, TruthLabs’ October 2023 claim implicated Christoph Jentzsch, a core ETH developer and the mind behind The DAO. TruthLabs stated, “Not only did Christoph Jentzsch launch THE DAO, but ANOTHER one of Ethereum’s core DEV’s, who had keys to the Ethereum Foundations Wallets, interacted with THE BLOCKCHAIN BANDIT’s wallet, PRIOR to the DAO Hack.”
Steven Nerayoff, a former Ethereum advisor and self-proclaimed “ETH whistleblower,” has expressed outrage over the lack of media coverage on these allegations. His statement on X asserted: “NO PRESS ON DAO HACK?! Not a single article on the biggest bombshell in crypto history. If not true they could disprove it with on-chain data.”
Nerayoff insists that the DAO Hack bears “the hallmarks & evidence of being an inside job,” and he believes that the transaction reversal, potential market manipulation, and insider trading point to a broader conspiracy, potentially even a RICO violation. “On chain analysis coupled with other evidence points to people within the ETH Foundation & http://Slock.It responsible,“ Nerayoff asserted.
Nerayoff is currently preparing a lawsuit against the ETH founders Vitalik Buterin and Joseph Lubin for their alleged fraudulent activities. In recent weeks, however, things have become quieter around Nerayoff, who has not yet revealed a date when the lawsuit will be filed.
The Blockchain Bandit And Ethereum DAO Hack
The “Blockchain Bandit” has been a notorious figure in the crypto world, known for exploiting weak private keys and stealing over $90 million in cryptocurrency. Despite years of inactivity, the recent movement of stolen funds has reignited interest in this case.
Meanwhile, the DAO hack remains one of the most significant incidents in crypto history, where a hacker exploited a smart contract vulnerability in the DAO, leading to the theft of over $50 million in Ether and resulting in a controversial hard fork in the ETH blockchain.
Overall, the need for thorough investigation and clear answers is paramount. Samson Mow’s stark comparison has undoubtedly put Ethereum’s security, governance, and history under a microscope, with the crypto world now awaiting concrete evidence or rebuttals to these serious allegations.
At press time, ETH traded at $2,691.
