Ethereum Foundation Is Under Government and SEC Scrutiny

The Ethereum Foundation’s GitHub repository is currently under inquiry by an undisclosed government, according to reports. This inquiry into the Swiss non-profit organization comes after Dencun, the largest Ethereum upgrade since the network switched to proof-of-stake (PoS), went live on March 13, 2024.

There were still some unknown factors at the time of certain reports regarding the Ethereum Foundation. The GitHub commit dated February 26, 2024, states, “We’ve received a voluntary inquiry from a state authority, which stipulated confidentiality as a requirement.”

The February 26 Github commit footer was deleted, along with the Ethereum Foundation warrant canary, where the foundation denied its contact with “any agency in the world regarding contact not being disclosed.”

Furthermore, the Securities and Exchange Commission (SEC) is reportedly actively pursuing legal measures to classify Ethereum, the second most prominent cryptocurrency, as a security.

According to U.S. companies that received subpoenas, the requirements of the SEC’s investigation are for companies to provide solid documentation and financial records concerning their engagements with the Ethereum Foundation.

The revelation of the subpoenas arrives at a critical time for the crypto community as the Ethereum ETF’s deadline is nearing. Renowned ETF analyst James Seyffart believes the SEC will ultimately deny the applications by May 23.

According to an attorney familiar with the matter, it’s possible that a Swiss regulator has issued a document request to the Ethereum Foundation and could be collaborating with the U.S. Securities and Exchange Commission (SEC).