Ripple Lawsuit Is A Part Of ‘Bigger Plan’

Things have gone quiet around Ethereum insider Steven Nerayoff in recent days, partly because his X account has lost a lot of visibility and reach on the social media platform. The former Ethereum consultant previously promised to expose fraud and corruption that he believes took place in the early years of Ethereum. And now, Nerayoff has spoken out again in a detailed post on X.

Nerayoff’s new accusations focus heavily on what he describes as a covert partnership between government officials and Ethereum co-founders, Vitalik Buterin and Joseph Lubin. He alleges that this coalition aimed to discredit him due to his insider knowledge of their activities. “It’s real and not a conspiracy,” he claims.

Why The Ripple Lawsuit Is Just A Part Of A ‘Bigger Plan’

“The government with private actors such as Vitalik & Lubin discredited & tried to imprison me to cover up this exact issue. My life was destroyed because I knew too much,” Nerayoff asserts. He suggests a far-reaching conspiracy that goes beyond mere bribery. He describes it as a “bigger plan” where both government and private actors supposedly worked together for corrupt gains.

Notably, Nerayoff portrays the lawsuit against Ripple as a strategic element in a larger scheme. “The ‘DAO Report’, ‘Free Pass‘, and going after Ripple was part of a much bigger plan,” he asserts, implying that the lawsuit was more than just a legal dispute. He asserts that it was a move to establish a controlled, quasi-decentralized protocol serving the interests of certain government and banking entities.

“As for Ripple the government, banks, ConsenSys & Ethereum all wanted to replace it but couldn’t catch them in a fair fight so they had to do the DAO Report, free pass and the lawsuit. This was much bigger than one goal of Ethereum versus Ripple,” Nerayoff stated.

So what was the bigger plan? According to Nerayoff, this plan was not merely an attempt to outmaneuver Ripple in the market; it was a concerted effort to establish a controlled, ostensibly decentralized protocol that would ultimately benefit the government and banks. “Ultimately government & banks get one main protocol which they pretend is decentralized, permissionless & public but in fact had players like Lubin & Vitalik that would do what they wanted as it was concentrated & controlled both effectively & actually.”

Thus, Buterin and Lubin, the Ethereum co-founders, are directly accused by Nerayoff of betraying the decentralized ethos of Ethereum. He contends that they were key players in the alleged scheme, with Buterin being referred to as a “false prophet” and Lubin criticized for his role in what Nerayoff suggests were profit-driven motives overshadowing genuine technological progress.

Ethereum: ICO Fraud And Bribery

Beyond the government, Ethereum served as the basis for “massive frauds committed through Token Foundry,” Nerayoff claims. The government deliberately looked the other way, with bribery allegedly being a common tool.

“In turn the government looked the other way while they committed massive fraud. At the same time many of these actors such as Hinman & Clayton have become fabulously wealthy as a result of the corruption they led,” Nerayoff extends on his claims.

He further stated that both Buterin and Lubin appeared confused and directionless in his leaked recording. Nerayoff contends that despite his advice, which he claims was later proven correct, Buterin focused his efforts in China to get funding in the early days while Lubin allegedly engaged in replicating Nerayoff’s own ideas to produce numerous fraudulent Initial Coin Offerings (ICOs).

And what about Nerayoff’s evidence? “My false SEC led prosecution with DOJ & FBI mirrored events in these efforts & by the same people. Why? Because I was the one person who could unravel at least the free pass. Some involved Clayton, Hinman, Marc Berger, Valerie Szczepanik, Jon Daniels, Jon Enright, Marc Bini, Andrey Spektor, S/A Jordan Anderson, S/A Andrew Cropshor,” the Ethereum whistleblower claims.

His statements conclude with a direct challenge: “Look at what I just accused above. If it’s false surely someone will come after me? They won’t because it would be legal destruction for them. This is proof.”

At press time, Ethereum traded at $2,091.

Featured image from YouTube / Forkast News, chart from TradingView.com