Reportedly, the Ethereum Foundation is under investigation.
The Ethereum Foundation, a non-profit organization within the Ethereum ecosystem, is reportedly under investigation by a government agency. While information about the investigation first appeared on GitHub on Feb. 26, it was only discovered by the crypto community a few weeks later. The original comment from the developer on GitHub has since been deleted, as evident from the code editing history. Currently, the details and focus of the investigation are unknown, and the Ethereum Foundation has not provided any comments on the matter.
Previously, the organization’s website stated that the Ethereum Foundation had never been in contact with any agency worldwide in a manner that required non-disclosure. However, the paragraph containing this information was removed from GitHub on Feb. 26.
The cryptocurrency community is speculating on the reason for the investigation. Some users believe it may be linked to the anticipated launch of Ethereum spot ETFs. Bloomberg analyst James Seyffart recently reported that the chances of an Ethereum-based ETF being approved in May have significantly decreased. Seyffart believes that the lack of constructive interaction between the SEC and Ethereum ETF issuers may lead to rejected applications in this round. He suggests that the SEC needs to be more proactive in engaging with potential issuers of Ethereum-based ETFs.
