The cryptocurrency research firm Truth Labs has raised warning bells over the Chinese Communist Party’s control of Ethereum.
Truth Labs, a well-known crypto investigator on X, has claimed that the Chinese Communist Party (CCP) exerts totalitarian control over Ethereum via organizations it owns. The investigator has raised the alarm that Ethereum’s decentralized future is at danger. Nearly 80% of ETH mined before to its merging upgrade in 2022, it said, was controlled by Chinese firms affiliated to CCP.
Truth Labs is well-known for their investigations into crypto-related fraud and obscurity. The firm’s infamous exposes on Ethereum co-founder Vitalik Buterin have made it a household name. This time, the investigator who exposed Buterin went to Twitter to discuss the pervasive presence of Chinese companies on the Ethereum network. According to the tweet, the Wangxian company, a Chinese multinational corporation, contributed to the first funding of the Ethereum network in 2015.
With a 2015 investment of $500,000, the Wanxian group is one of the biggest Ethereum whales. Additionally, the team is credited with creating the first wallets used by Vitalik Buterin, the creator of Ethereum. According to Truth Labs, the largest ETH miners are related Chinese organizations to the CCP, who control over 80% of the total. According to the investigation, more over 66.6% of the ETH supply is likely held by Chinese firms.
Truth Labs claims that Chinese organizations are responsible for the introduction and subsequent withdrawal of a large number of alternative cryptocurrencies, decentralized exchanges, and stablecoins. With over $50.32 billion in value, the Ethereum network is the biggest ecosystem in the cryptocurrency market. In this context, the Twitter detective raised concerns that Ethereum’s decentralized credentials and legitimacy may be weakened by CCP’s expanding influence over the network.