CoinDesk reveals: Is Ethereum Foundation facing a mysterious investigation by the SEC?

According to a report by CoinDesk, the Ethereum Foundation, a cornerstone of the Ethereum ecosystem, is currently under scrutiny by an undisclosed "state authority."

This development was quietly disclosed on the Ethereum Foundation's GitHub page, leading to speculation about the nature and implications of the investigation, leaving the crypto community puzzled. The content reveals a GitHub update from February 26, 2024, indicating a "voluntary inquiry" received from a "national authority, including confidentiality requirements."

Ethereum Foundation Unresponsive

CoinDesk reported that the Ethereum Foundation has not responded to inquiries regarding an investigation.

Timing of the Investigation

CoinDesk mentioned that the investigation comes amid significant technical advancements within the Ethereum blockchain. As the second-largest blockchain network, Ethereum recently underwent a major technical upgrade called "Dencun." This upgrade aims to reduce transaction costs for users on Ethereum-based Layer 2.

The timing of the upgrade also aligns with expectations for the approval of an Ethereum ETF in the United States, with several application deadlines approaching in late May.

Disappearance of Warrant Canary Certification

Of note, significant changes have occurred on the Ethereum Foundation's website.

The symbol indicating that the representatives have never received any government subpoenas or data requests worldwide, which was originally on the website and in the GitHub update logs, has been removed.

Warrant Canary certification is a tool used by some organizations to hint at government requests received. It disappeared from the website on February 26. The removal of this warrant canary has sparked discussions on whether national agencies have begun to show interest in the Ethereum Foundation.

Various Speculations

Regarding the possible reasons behind the investigation, there are various speculations. Some experts believe it could be the Swiss regulatory authority or possibly in collaboration with the U.S. Securities and Exchange Commission (SEC). The diminishing optimism for the approval of an Ethereum ETF as the SEC reviews applications reflects the challenges in regulatory compliance.