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Blockchain Investigator Accuses Vitalik Buterin of Funding Ethereum ICO with Seized Silk Road Bitcoin

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Blockchain Investigator Accuses Vitalik Buterin of Funding Ethereum ICO with Seized Silk Road Bitcoin

TruthLabs, a blockchain investigative analyst, has accused Ethereum co-founder Vitalik Buterin of benefiting from Bitcoin seized from Ross Ulbricht’s Silk Road wallet during Ethereum’s initial coin offering (ICO). The allegations emerged following an online exchange between Buterin and Ulbricht on January 19, 2025.

Ulbricht, who is serving a life sentence for operating the Silk Road marketplace, took to X to clarify his non-involvement with meme coins bearing his name. Vitalik responded with a message of support, calling Ulbricht’s life imprisonment “absurd” and expressing hope for his freedom.

TruthLabs’ Allegations

In the early hours of today, TruthLabs posted a series of claims alleging that Bitcoin from Ulbricht’s seized wallet was used to fund Ethereum’s ICO and the Ethereum Foundation. They stated that the downfall of Silk Road and the confiscation of its assets provided the financial foundation for Ethereum’s success.

According to TruthLabs, Buterin was allegedly aware as early as January 2014 that Ethereum’s ICO would be funded by Bitcoin linked to Silk Road assets and the collapsed Mt. Gox exchange. The post criticized Buterin for not leading efforts to support Ulbricht’s freedom, despite Ethereum allegedly benefiting from his imprisonment.

“Vitalik, your ICO, and your Foundation’s wallets were funded from Bitcoin that came from Ross Ulbricht’s seized Silk Road wallet,” TruthLabs wrote.

They further condemned Buterin for allowing grassroots movements like Free Ross DAO to rely on public donations while providing only minimal public support himself.

Broader Context and Reaction

Ross Ulbricht’s life sentence has long been a contentious issue, with supporters advocating for clemency and criticizing the severity of his punishment. Free Ross DAO, a decentralized fundraising initiative, has raised significant funds to support Ulbricht’s legal efforts.

Neither Buterin nor the Ethereum Foundation has responded to the allegations at the time of writing. However, the claims have reignited debates over the origins of Ethereum’s funding and the ethical responsibilities of its leadership.

Meanwhile, during the U.S. president-elect Donald Trump’s campaign, he made a pledge to the crypto community to free the Silk Road creator, Ross Ulbricht, if re-elected. Notably, with Trump taking office today, whether he will fulfill the promise remains to be seen.

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