A video circulating on social media features Ethereum’s creator, Vitalik Buterin, admitting that he sold 70,000 ETH tokens during a period of its highest price. Buterin’s acknowledgment of “shorting” Ethereum came to light in a video posted by a member of the crypto community, MetaMan X, on X (formerly known as Twitter).
The video captured a conversation between Buterin and American hedge fund director Eric Ross Weinstein, during which they discussed the price of Ethereum and Bitcoin in 2017.
At the time of Ethereum’s previous all-time high in 2017, with ETH reaching a peak of $1,600 and Bitcoin at $20,000, Buterin expressed skepticism about whether these substantial price increases were truly justified given the relatively modest accomplishments of the crypto market over the years. He raised the question, “Does the crypto space, with its half-a-trillion-dollar valuation, truly merit it?”
When asked if he had engaged in short-selling Ethereum during that all-time high, Buterin revealed that he had persuaded the Ethereum Foundation to sell a significant quantity of ETH tokens, and this decision had a significant impact on the cryptocurrency’s future. He explained,
“I did convince the Ethereum Foundation to sell 70,000 ETH, essentially at its peak, and that decision effectively doubled our financial resources, making it a highly impactful choice.“
This revelation about Buterin’s actions has caused concern within the crypto community, particularly regarding his various ETH transactions. Recently, Buterin made a transfer of 100 ETH, valued at approximately $181,000, to Coinbase, one of the world’s largest cryptocurrency exchanges. This transaction’s purpose has sparked curiosity among Ethereum investors and the broader crypto community. In August, Buterin was also reported to have moved 600 ETH, worth $1 million, to Coinbase.
However, in October, Buterin publicly clarified that he had not sold any ETH tokens for personal gain since 2018. He further explained that many of the ETH transactions attributed to him were not sales for profit but rather the recipients of his charitable donations liquidating the ETH tokens.
Additionally, Buterin has become embroiled in controversy following allegations by Ethereum whistleblower Steven Nerayoff. Nerayoff claimed that Buterin was involved in a fraudulent scheme related to ETH and suggested a connection to corrupt SEC officials, implying that this fraud was on a larger scale than the FTX case. For context, FTX founder Sam Bankman-Fried faced fraud charges after the exchange filed for bankruptcy in 2022 with a $9 billion deficit on its balance sheet.