The Ethereum Foundation, a non-profit central to the Ethereum blockchain network, is under investigation by an unidentified government agency. This news comes according to a recent update on the Foundation’s GitHub repository.
Details surrounding the investigation are scarce. A GitHub commit dated February 26th, 2024, states the Foundation received “a voluntary enquiry from a state authority that included a requirement for confidentiality.” The Ethereum Foundation has not responded to requests for comment.
This investigation coincides with a period of significant development for Ethereum. The blockchain recently underwent a major upgrade, Dencun, aiming to reduce transaction fees.
Warrant Canary Removal Raises Questions
Previously, the Ethereum Foundation’s website included a message stating they had never been contacted by any government agency requiring confidentiality.
This message, along with a “warrant canary” (often a symbolic image), was removed in the February 26th update. Warrant canaries are used by some organizations to signal they haven’t received a secret government subpoena. The Foundation’s canary was previously removed in error in 2019.
Legal experts speculate a Swiss regulator may be involved, potentially collaborating with the U.S. Securities and Exchange Commission (SEC) which is currently reviewing Ether ETF applications. The SEC has shown little enthusiasm for approving these applications thus far.
This investigation coincides with a period of significant development for Ethereum. The blockchain recently underwent a major upgrade, Dencun, aiming to reduce transaction fees.
Additionally, the U.S. awaits a decision on several applications for an Ether ETF, with a deadline approaching in late May.
