Vitalik Buterin analyzed fraudulent schemes in crypto: from BitConnect to Bitcoin SV

MEVictim · 2026-01-13T08:01:30+00:00

The essay discusses the ongoing issue of cryptocurrency fraud, highlighting insights from Ethereum co-founder Vitalik Buterin. He labels BitConnect as a "100% scam" and rates Bitcoin SV as "80% fraudulent" due to its management issues. However, Buterin remains optimistic about the industry's evolution, noting that while fraud may never be completely eliminated, the overall quality of projects is improving.

MEVictim

2026-01-13 08:01:30

Abstract generation in progress

The problem of outright fraud in the cryptocurrency industry remains relevant, although its scale is decreasing as the market becomes more institutionalized. This was discussed in an interview with Ethereum co-founder during a conversation with Lex Fridman in June 2021.

BitConnect as a benchmark of crypto fraud

Vitalik Buterin gave the most harsh assessment of the BitConnect project, outright calling it “100% fraud.” In his opinion, this is a classic example of blatant deception that leaves no doubt about the creators’ intentions. Buterin emphasized that as the ecosystem matures, such obvious scams become less frequent — the market naturally filters out blatant fraudsters.

Bitcoin SV: technology versus ethics

A less categorical but still critical view of Buterin on Bitcoin SV (BSV) reflects a more complex situation. The project received a rating of “80% fraud” — technically, the solution works (blocks of 512 MB demonstrate certain functionality), but the problem lies in management and ideology.

The project founder Craig Wright was directly called a fraud by Buterin, who characterized Bitcoin SV as an initiative to seize funds supported by a “crazy” community. This position reflects criticism both of the project itself and of the ecosystem around it.

Industry evolution and natural selection

Buterin’s overall conclusion is optimistic: the crypto industry is maturing, becoming less tolerant of blatant scams. Although completely eradicating fraud is impossible, the quality of projects and the level of ecosystem development are gradually increasing.

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