Who created Ethereum?

The Ethereum platform was first proposed by Vitalik Buterin in a blog post titled Ethereum: The Ultimate Smart Contract and Decentralized Application Platform from 2013. A decentralized computer that can run any application given enough time and resources, as he stated in his post, would be a Turing-complete blockchain.

There are no limits to what can be done on a blockchain in the future, other than the imaginations of the creators. The goal of Ethereum is to see if blockchain technology can be used in a way that isn't limited by Bitcoin's design.

How was ether distributed?

Ethereum launched in 2015 with an initial supply of 72 million ether. More than 50 million of these tokens were distributed in a public token sale called an Initial Coin Offering (ICO), where those wishing to participate could buy ether tokens in exchange for bitcoins or fiat currency.