CEO’s sexual misconduct claims lead to change in leadership at Ethereum L2 Eclipse

Eclipse, a layer-2 project on the Ethereum network, is undergoing a leadership change due to allegations of sexual misconduct against its former CEO, Neel Somani. In an announcement made by Eclipse Labs on May 16, it was stated that Somani has stepped down from his position and will be replaced by Vijay Chetty, effective immediately. The specific reason for Somani’s departure was not mentioned in the announcement.

Chetty, who has been leading Eclipse, previously served as the project’s growth officer. He brings with him a wealth of experience, having held leadership roles at dYdX Trading, Ripple Labs, and Uniswap Labs. He has also worked with investment manager BlackRock.

Despite the allegations, Somani continues to deny all claims of misconduct. On May 9, he announced that he would be temporarily reducing his public presence in response to the accusations made against him. He maintained his innocence, stating that he has never sexually assaulted or harassed anyone.

Eclipse, on the same day, acknowledged the seriousness of the allegations against Somani and emphasized the importance of truth. However, the project faced criticism from the cryptocurrency community, with some suggesting that Somani’s decision to step down implied his guilt.

The controversy surrounding Somani has also affected Eclipse’s backers and investors. Dragonfly Capital, a managing partner at Haseeb Qureshi, disclosed that their VC firm had chosen not to invest in Eclipse after uncovering Somani’s history of sexual harassment claims during background checks. Qureshi questioned whether other investors were also aware of this information.

Hack VC, another investor in Eclipse, expressed deep concern over the allegations against Somani. They revealed that they had urged Somani to resign and were satisfied with his decision, emphasizing that the alleged behavior was completely unacceptable.

In unrelated news, former FTX executive Ryan Salame has surrendered his $5.9 million mansion in the Bahamas.