The Ethereum ecosystem, long praised for its many innovations, is now reeling from the disturbing revelations of an in-depth investigation by Truth Labs. These investigations have brought to light a murky landscape of fraudulent activity threatening the fundamental integrity of the blockchain.
Extensive fraudulent practices on the Ethereum network
In recent months, Truth Labs exposed a complex network of illegal activities that have infiltrated various sectors of the blockchain Ethereum. These practices extend to:
- Protocols and smart-contracts
- NFT sales protocols
- CEX and DEX
In short, a bleak picture of the blockchain ecosystem is painted where all components seem to be affected by market manipulation and fraud. That’s probably started the aggregation of discoveries leading to EthGate.
The grouping of Sleuth, the nickname given to these activist investigators proclaiming universal values, has declared that it has initiated an in-depth investigation into the Ethereum blockchain network due to security concerns. As a result, he uncovered a worrying array of illegal practices, including theft, exploitative schemes and deceptive trading.
Truth Labs has documented in detail its research into the ongoing fraud, identify those responsible, and uncover links between individuals and locations involved in illicit activities.
The company pointed to the normalization and acceptance of theft and market manipulation as worrying trends within the community.
Influential people singled out by EthGate’s findings
Recurrent market manipulations by the big fish
The contributors to these findings have identified a network of portfolios and actors disproportionately linked to fraudulent activities on Ethereum. His revelations cast a critical light on influential figures in the Ethereum community, accusing them of participating in pump-and-dump schemes while contributing to standardization of unethical behaviour.
Truth Labs expressed frustration at the apparent disregard for people’s financial losses, pointing out that those shaping Ethereum’s future seem indifferent to widespread fraudulent behavior.
Steven Neyaroff joins the dance!
Moreover, Ethereum’s former advisor in the early days of its creation, Steven Neyaroff calls into question the legitimacy of Vitalik and Joseph Lubin in his latest virulent tweets. Are these denunciations justified? Apparently so, Steven says he’s no longer afraid of anything, and intends to dig up old files that could tarnish the reputation of Ethereum’s best-known founder, Vitalik and another co-founder. For example, he released an NFT to mint for free with almost 3 hours of conversations from early 2015 between Vitalik and him as well as a 36 pages transcript and a recap of “ETHEREUM RESCUE & RESTRUCTURE PLAN”.
This seems to be the last straw for the media to finally take an interest. EthGate which is denounced by on-chain investigators. Moreover, other off-chain testimonies support and cross-check the information found.
Finally, the good thing about the public blockchain is that everyone can see the transactions when the blockchain consensus makes them transparent. Are these discoveries the start of a global rethink of Ethereum?
The conclusions of these whistle-blowers who wish to make the truth public and transparent are not merely theoretical warnings. Each investigation is justified by irrefutable evidence of on-chain transactions. Their interpretation may differ, but the evidence is there. The work of these investigators is increasingly being disseminated, particularly on X, which Musk promotes as a source of free, first-hand information.
Key players in blockchain Ethereum Should they then actively engage in promoting transparency and ethics to ensure user protection? Finally, what values embody our ecosystem today?
How will the ecosystem and the market react when the research surrounding #EthGate comes to light?
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.