Crypto Sleuths Reveal Joseph Lubin Received 3.75M ETH During Ethereum ICO

A group of crypto sleuths calls the public’s attention to the amount of ETH tokens Ethereum co-founder Joseph Lubin received during the token’s ICO.

Australian-based pro-XRP lawyer Bill Morgan called attention to claims that Ethereum co-founder Joseph Lubin received a whopping 3.75 million ETH during the project’s ICO. At the current exchange rate of $2,901, the 3.75M ETH coins are worth $10.87 billion.

He questioned the exact percentage the figure constituted when compared to the total ETH distributed during Ethereum’s ICO phase. Attorney Morgan made the remarks in reaction to an X post from a group of sleuths who operate under the pseudonym TruthLabs.

Wow, over 3.75 million of the ETH distributed during the ICO to Lubin. What was that as a % of all ETH distributed during the ICO? https://t.co/ll2WWOKeIY

— bill morgan (@Belisarius2020) May 13, 2024

TruthLabs Issues Fresh Allegations Against Lubin

The group revealed serious allegations against Lubin, claiming that the Ethereum co-founder perpetrated more fraudulent activities than the infamous American financial criminal Bernie Madoff.

To support the corruption allegations, TruthLabs presented evidence showing over 50% of all Bitcoin addresses the Ethereum co-founder used to participate in ETH ICO. The so-called evidence shed light on how much BTC Lubin allegedly paid and the total ETH he received. 

Screenshots attached to the tweet showed that the addresses, potentially linked to Lubin, invested 1,648 BTC during the ICO. In return, the addresses received 3,275,145 (3.27 million) ETH in connection to the Genesis Block 0.

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TruthLabs claimed the investigation was time-consuming, lasting over hundreds of hours. Nevertheless, they shared the information with the public at zero cost.

Controversies Surrounding ETH ICO

There have been numerous allegations regarding potential corrupt practices during Ethereum’s ICO. Former Ethereum advisor Steven Nerayoff had fueled these debates in the past, alleging that Lubin and Vitalik Buterin sabotaged crypto and engaged in fraudulent ICO.

However, no one knows the exact amount of ETH paid to Ethereum co-founders, especially Lubin. Notably, Lubin has also refrained from revealing his ETH holdings on several occasions, including during CoinDesk’s Consensus 2022 event. During the event, Lubin claimed that his ETH holdings amounted to less than half a percent. 

His claim contradicts previous analysis, especially from Forbes. In 2018, when Forbes named Lubin the second-richest man in crypto, the media outlet estimated that he owned between 5% – 10% of the total ETH supply.

Nonetheless, Lubin has remained mute regarding his ETH holdings despite the resurgence of corruption allegations. Lubin has been a significant player in Ethereum even before the network launched its controversial ICO in 2015. 

Besides being able to buy ETH during the ICO, Lubin’s position as Chief Operating Officer of Ethereum at the time could have earned him a huge chunk of the ETH reserved for Ethereum Foundation team members and early contributors.

Lubin’s exact ETH holdings have attracted the public’s attention as the SEC launches an investigation to determine whether certain ETH transactions qualify as securities.

It bears mentioning that Lubin’s company, Consensys, filed a lawsuit last month to stop the SEC from giving ETH the securities tag.