Ethereum Founder Vitalik Buterin Urges Blockchain CEOs To Speak Against Scammers Regardless of short-Term Backlash.
Ethereum’s Vitalik Buterin Urges Founders To Speak Up Against Scams In Response To News Of SEC Suit Against Creators Of Fraudulent Ponzi Scheme Based On Smart Contracts.
Ethereum founder Vitalik Buterin in a tweet early on Tuesday called on CEOs not to hold back in their commentary against scammers taking advantage of their platforms. Buterin said this in response to news of the SEC suing creators of a fraudulent Ponzi scheme based on smart contracts, citing comments he made two years ago against scammers running pyramid schemes on the Ethereum blockchain.
“Call out scammers. You get hate in the moment, but time vindicates you. Even if you’re some CEO with a ‘reputation’ and need for ‘professionalism,’ do it anyway and be savage.” Buterin wrote in his tweet.
Call out scammers. You get hate in the moment, but time vindicates you.
Even if you're some CEO with a "reputation" and need for "professionalism", do it anyway and be savage. People look up to you and your warning will be taken seriously. pic.twitter.com/XXYuXpWYl4
— vitalik.eth (@VitalikButerin) August 2, 2022
It is worth noting that on Monday, the US SEC revealed that it was charging eleven individuals for their roles in creating and promoting a fraudulent crypto pyramid scheme called Forsage that raised over $300 million from retail investors worldwide.
The case indicts four founders’ current locations unknown, 3 US-based promoters, and members of Crypto Crusaders, identified as the leading promotional group for the scheme in the US. Notably, the scheme has been operating for over two years, launching in January 2020. Despite attempts by regulators in the Philippines and Montana to shut down the scheme in their jurisdictions, Forsage continued to operate, denying the news of any regulatory action against it on various social media platforms.
The Forsage scheme, which operated using smart contracts on Ethereum, Tron, and Binance Smart Chain, required investors to recruit new members to make a profit. “Forsage also allegedly used assets from new investors to pay earlier investors in a typical Ponzi structure,” the SEC wrote in its press release.
It is worth noting that the SEC has continued to ramp up its crypto enforcement actions in recent weeks. For example, the regulator is currently suing a former employee of Coinbase and two others in an alleged insider trading scheme even as it investigates Coinbase for offering unregistered securities for trading on its platform.
Vitalik, therefore, insists others speak against scammers to help the community recognize fraud. People listen to influencers, pointing out scammers can protect new comers and investors from falling victims to tricksters.
“People look up to you, and your warning will be taken seriously,” Vitalik added.