Did Vitalik Buterin really sell $170 million worth of Ethereum?

No. The viral claim that Ethereum co-founder Vitalik Buterin sold 110,000 ETH worth roughly $170 million was later challenged by on-chain investigators. Blockchain data indicated the transaction involved a different Ethereum co-founder and was not an open-market sale.

Who was actually behind the large Ethereum transaction?

According to on-chain analysis, the transaction involved Joseph Lubin rather than Vitalik Buterin. Community researchers said the funds were moved into a DeFi position instead of being sold on cryptocurrency exchanges.

Why did the rumour cause concern among Ethereum investors?

Large sales by founders or insiders are often interpreted as a sign of reduced confidence in an asset. The reports triggered fears that a major Ethereum insider was exiting the market ahead of a potential price decline.

Was any ETH actually sold on the open market?

Community members said no ETH was sold into the market as part of the transaction. Instead, the assets were reportedly used as collateral within a decentralised finance (DeFi) strategy, meaning Ethereum exposure was maintained.

What happened to the ETH involved in the transaction?

According to the analysis, approximately 178,000 wrapped ETH (WETH) was supplied as collateral in a DeFi vault. The position was then used to borrow roughly $103 million worth of DAI stablecoins.

Why would someone move ETH into a DeFi vault instead of selling it?

Using ETH as collateral allows investors to access liquidity without giving up ownership of their holdings. This strategy is commonly used by large crypto holders who want to borrow funds while maintaining exposure to potential price appreciation.

Image for illustrative purposes only. Not a real photo.

Ethereum co-founder sale fears debunked by data

Written by Liezl GambePublished Jun 9, 2026, 7:02 AM

Rumours of a massive Ethereum insider sell-off spread across social media this week after claims emerged that co-founder Vitalik Buterin had sold 110,000 ETH worth approximately $170 million in a matter of hours.

The reports sparked concern among traders and analysts, with some suggesting the alleged transaction could signal weakening confidence in Ethereum and foreshadow broader market declines.

Several social media commentators pointed to the purported transfer as one of the largest insider exits in Ethereum's history, while others compared it to previous market cycles in an effort to support bearish forecasts.

However, on-chain investigators and members of the Ethereum community quickly challenged the claims, arguing that the widely shared narrative misrepresented the underlying transaction.

Analysis of blockchain data indicated that the wallet activity involved Ethereum co-founder Joseph Lubin rather than Vitalik Buterin, and that the funds had been moved into a decentralised finance vault rather than sold on the open market.

According to community explanations, approximately 178,000 wrapped ETH was supplied as collateral while around $103 million in DAI was borrowed against the position, allowing Lubin to access liquidity while maintaining exposure to Ethereum.

Community members said the transaction represented a standard DeFi risk-management strategy designed to reduce liquidation risk and criticised those spreading the original claims, urging investors to verify blockchain activity through reputable on-chain analytics platforms before drawing conclusions from reports of large insider transactions.

At the time of reporting, Ethereum price was $1,683.69.