- Crypto investigator Truth Labs sounds alarm on the Chinese Communist Party’s hold on Ethereum.
- Truth Labs alleges that the WangXian group has an overriding influence on the Ethereum network.
- Chinese entities close to the CCP are also suspected to control nearly 80% of mined ETH.
Truth Labs, a crypto investigator popular on X, has alleged that the Chinese Communist Party (CCP) wields overarching influence in the Ethereum network through entities it controls. The investigator has sounded alarm that the decentralized future of Ethereum is under threat. It alleged that Chinese entities close to CCP held nearly 80% of ETH mined before its merge update in 2022.
Truth Labs is known for its investigative work to uncover scams and secrets of the crypto world. The investigator is famous for its exposés on Ethereum’s founder, Vitalik Buterin. In the latest expose on Buterin, the investigator tweeted about the widespread involvement of the Chinese entities in the Ethereum network. The tweet said that the Chinese conglomerate Wangxian group was one of the early funders of the Ethereum network in 2015.
Wanxian group is one of the largest Ethereum whales, with an initial investment of $500,000 in 2015. The group is also credited with setting up Ethereum founder Vitalik Buterin’s original wallets. Truth Labs stated that with more than 80% of ETH, Chinese entities close to the CCP are also the biggest miners on the network. The investigator speculates that Chinese entities hold more than 66.6% of the ETH supply.
Truth Labs also alleges that Chinese entities are behind the launches and subsequent rug pulls of numerous altcoins, CEXs, DEXs, and stablecoins. The Ethereum network is the largest ecosystem in the crypto market, with more than $50.32 billion in total value locked in it. Against this backdrop, the Twitter sleuth sounded alarm that increasing CCP control over the Ethereum network will erode its decentralization credentials and credibility.
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