Ethereum Foundation Faces Investigation from State Authority
The Ethereum Foundation, a Swiss non-profit organization that plays a central role in the Ethereum ecosystem, has disclosed that it is currently the subject of an investigation by an undisclosed state authority.
According to CoinDesk, on February 26, 2024, a commit on the organization’s website’s GitHub repository made the information public. The message stated that the Ethereum Foundation had received a voluntary inquiry from a state authority, which included a requirement for confidentiality.
Key points:
- An undisclosed state authority is investigating the Ethereum Foundation.
- The investigation comes during a time of significant technological changes for Ethereum, including the recent Dencun upgrade.
- The Ethereum Foundation’s website has removed its warrant canary and a disclosure regarding government inquiries.
- An attorney familiar with the situation suggests that a Swiss regulator may be working with the U.S. SEC.
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At present, the details surrounding the investigation, including its scope and focus, remain unclear. The Ethereum Foundation has not responded to requests for comment, leaving many in the cryptocurrency community speculating about the nature of the inquiry.
Investigation comes after the Ethereum Dencun Upgrade
The timing of the investigation is particularly noteworthy. This is because it coincides with a period of significant technological changes for Ethereum. ETH, which is the second-largest by market cap after Bitcoin, recently underwent a major technical upgrade called Dencun. The upgrade aimed to lower transaction costs for Ethereum-based layer-2 platform users.
In addition to the technical developments, investors in the United States are eagerly awaiting the outcome of several applications for an ETH ETF. The SEC is currently evaluating the merits of these applications, which have a final deadline of late May.
The Ethereum Foundation’s website disclosed, prior to the recent GitHub commit, that no agency worldwide had ever contacted the organization in a way that required non-disclosure.
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The website also displayed a warrant canary, a visual alert that signified the foundation had never received a secret government subpoena or document request. However, according to the changelog, the February 26 commit removed both the disclosure and the warrant canary.
An attorney familiar with the situation has suggested that a Swiss regulator may have served a document request to the foundation and could be working in collaboration with the SEC.
