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Is Ethereum Controlled by China? Experts Question Ethereum-China Ties

Published 31/08/2023, 11:58
Is Ethereum Controlled by China? Experts Question Ethereum-China Ties
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  • Lawyer John Deaton supports claims of China’s influence on Ethereum.
  • Deaton recently shared an article wherein the author alleges ties between Chinese company Wanxiang and Ethereum.
  • The article also claims Ethereum took donations from Chinese companies in return for undisclosed favors.

Pro-XRP lawyer John Deaton recently reposted a viral article that alleges China’s influence on Ethereum. While agreeing with the views in the blog, Deaton also brought up how former the SEC chairman William Hinman testified that he knew how much ETH Vitalik Buterin, the Ether Foundation, Joseph Lubin, and Consensys owned, but had forgotten the percentages of ownership.

The article in question titled “Ethereum, Vitalik Buterin’s Chinese connection: How deep does it go?” was published earlier this week on Crypto Geek. Among other things, the thirty thousand-worded piece raises questions about Buterin’s ties with China and the influence of the nation on Ethereum’s operations.

Even though the article delved into Hunter Biden and Donald Trump at certain points, the primary focus was on Dr. Xiao Feng, executive director of China Wanxiang Holding. Pulling evidence from Feng’s own book The Infinite Machine,” the article brings to light how Wanxiang worked together with Ethereum to promote the developments of blockchain in China.

According to the excerpts from the book, large donations were made by Feng to the Ethereum Foundation. “While Xiao’s $500k ‘donation’ was later converted into over 416,000 ETH tokens, there’s never been any public breakdown of what Xiao/Wanxiang received in exchange for their additional funding of the Foundation,” claims the author of the Crypto Geek article.

To add to the list of allegations, crypto sleuth TruthLabs identified connections between wallets owned by Wanxiang and the Ethereum foundation. Apparently, nearly 10% of the circulating ETH supply was allocated to Ethereum Foundation members with its ICO being similarly problematic. According to TruthLabs, Wanxiang served as an intermediary for the Chinese government to purchase large amounts of ETH through the ICO.

The author also believes that the recent transition of Ethereum’s validation mechanism to proof of stake is also suspicious. Lastly, the article delved into Wanxiang’s less-than-open operations in China and its affiliations with the Chinese Communist Party (CCP). Though much of the piece hinges on suspicions and speculation, it would be advantageous for Buterin to address these issues and put these allegations to rest with his own version of events.

The post Is Ethereum Controlled by China? Experts Question Ethereum-China Ties appeared first on Coin Edition.

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