Ethereum Alert: China’s ETH Holdings Threaten Crypto Stability

• China’s CCP’s dominance in the Ethereum ecosystem remains a topic of concern for community members.
• According to TruthLabs, CCP is the largest hidden whale on the network.

Cryptocurrency community members have long voiced their concerns over China’s position in the Ethereum ecosystem. Echoing these sentiments, Steven Nerayoff, the former advisor at Ethereum, revealed China’s CCP’s significant stakes in Ethereum and its potential dangers for the network.

Taking to X, also known as Twitter, to speak on the issue, the former Ethereum executive remarked that crypto enthusiasts are turning a blind eye to an ongoing pattern with the Chinese Communist Party (CCP). Neyaroff maintains that Ethereum’s position in the market could be threatened by the CCP’s significant dominance over the network. Certain that leading U.S. regulators are corrupt, he urges prominent market players to tackle the underlying problems. He wrote:

The CCP’s stake in Ethereum jeopardizes the entire crypto world. It’s inevitable. Ethereum has vulnerabilities—that’s a fact. The SEC and other entities are compromised. We can’t ignore this; we must confront corruption, hold key figures accountable, and keep advancing this constantly evolving industry.

Notably, Neyaroff’s statement was made in response to TruthLabs. As TruthLabs alleges, the CCP stands as Ethereum’s largest hidden whale, with its asset ownership being estimated to sit around 66.6% of the total supply of Ethereum.

CCP was Accused of Favoring U.S. regulators to Maintain its Position

Truth Labs made another major claim, stating that the U.S. Securities and Exchange Commission (SEC), as well as the Commodity Futures Trading Commission (CTFC), have both been “compromised” by the CCP. Prometheum, the only U.S.-registered crypto securities platform, is also accused of reviving special treatment, to function as the only Purpose Dealer Broker license for Digital Assets in the United States.

Alleging that a Paycheck Protection Program (PPP) fraud might have been enabled via Ethereum, Truth Labs stated the following;

I wonder how much of the PPP fraud during Covid was from the CCP, which ran through Ethereum. Just look at the data. A massive dollar Volume surge shown below ran through Binance as our Trillions in PPP Funds were being released.

The recent statements from crypto figures have stirred up a debate amongst the Ethereum community, although the sentiments are mixed at this time. However, top Ethereum executives like Vitalik Buterin have yet to make any official comment in response to the allegations.

It bears mentioning that TruthLabs has been digging into the Ethereum ecosystem, carrying out research aimed at spotlighting the depths of Ethereum’s network structure.

Last year, TruthLabs took a deep dive into the Ethereum network. According to their findings, NFTs-wrapped Tokens, CEXs, & DEXs, and every other part of the Ethereum ecosystem were experiencing thefts, exploits, and rugs. However, the validity of the research is yet to be verified by insiders.