Vitalik Buterin exposes the scale of fraud in the crypto industry: sharp criticism of BitConnect and Bitcoin SV

Co-founder of Ethereum raised a sharp issue about the spread of crypto scams during a conversation with Lex Fridman in June 2021. In his opinion, the industry faces a serious problem of outright deception, although the situation is gradually improving as the market develops.

BitConnect: an obvious example of blatant fraud

Vitalik Buterin straightforwardly called BitConnect “100% scam,” emphasizing its status as one of the most brazen examples of crypto fraud. The project was a typical Ponzi scheme that collapsed, leaving investors without funds. Buterin noted that as the industry matures, such blatant schemes become less common, but completely avoiding them is rarely possible.

Bitcoin SV: “80% scam” in question

Assessing Bitcoin SV, Ethereum’s co-founder used a softer formulation — “80% scam,” while acknowledging certain technical achievements of the project, particularly the use of 512 MB blocks. However, this did not prevent him from sharply criticizing the project’s founder, Craig Wright, calling him a “fraudster.” Buterin characterized the initiative itself as “money grab,” cloaked in support from a radical community of supporters.

Positive shifts in the fight against fraud

Vitalik Buterin expressed cautious optimism, noting that obvious crypto scams are gradually receding into the background as the industry becomes more professional. Nevertheless, vigilance remains necessary, as new deception schemes constantly evolve and adapt to changing market conditions.