Ethereum Foundation and Vitalik Buterin Face Federal Lawsuit

Overview of the Lawsuit Against the EthereumETH-1.38% Foundation

A major legal dispute has emerged within the cryptocurrency community. Kayleen Fulton, a former leader at the Ethereum Foundation, has filed a federal lawsuit against the organization and its co-founder, Vitalik Buterin.

Fulton alleges that she was wrongfully terminated shortly after sharing a serious medical diagnosis and organizing staff opposition to a controversial internal document. The legal action highlights growing internal friction over organizational governance.

Who Is Named in the Federal Filing?

The legal complaint was officially submitted to the U.S. District Court for the District of Colorado. It targets a total of six specific defendants across international jurisdictions and corporate entities.

The defendants listed in the lawsuit include:

• Stiftung Ethereum: The foundation's main non-profit entity based in Switzerland.
• Ethereum Asia Pacific Ltd.: The foundation's affiliated entity based in Singapore.
• Vitalik Buterin: Co-founder and board member of the Ethereum Foundation.
• Bastian Aue: Executive leader within the foundation.
• Lightsource HR Global LLC: Human resources service provider for the organization.
• Vensure Employer Services Inc.: Third-party HR services provider.

The Internal Dispute Over the Mandate

The core of the dispute involves an organizational document known as The Mandate, which was initially distributed to employees by the board on February 25.

According to the legal complaint, the document included a clause titled the Source Seppuku License. This provision asked contributors to pledge that they would end their own lives with a sword if they failed to follow its rules.

The clause created immediate controversy among staff members. A total of 79 employees voted in favor of removing the provision entirely.

Although Vitalik Buterin informed staff that significant changes were under consideration, the final version released on March 13 retained the disputed wording inside a stylized illustration with cartoon characters. The foundation also recorded this document directly on the Ethereum blockchain.

Staff Protests and Retaliation Allegations

In response to requirements that staff endorse the document under threat of dismissal, Fulton and her colleague Trent Van Epps organized a formal protest letter. The petition gathered signatures from 53 foundation employees.

While management eventually agreed not to fire employees solely for refusing to sign, both Fulton and Van Epps were terminated on April 6.

Fulton claims her termination was selective retaliation for organizing the protest. She points out that she maintained a strong performance record with no prior disciplinary action during her tenure as head of the Protocol Support team.

Medical Leave and Severance Agreement Disputes

The timing of the dismissal forms another major component of the lawsuit. Fulton revealed an ovarian cancer diagnosis to senior management just 13 days before her termination.

She states that management failed to process her request for employment protection or medical leave before ending her contract without detailed explanation.

Faced with losing her health insurance coverage, Fulton signed a separation agreement waiving future claims. She is now challenging the legal validity of that agreement, including a clause requiring disputes to be handled through arbitration in Singapore.

Legal Claims and Audio Evidence

Fulton's lawsuit brings 11 distinct legal claims against the defendants. These cover several key areas of employment law:

• Disability discrimination under federal and state law
• Interference with medical leave rights
• Retaliatory termination for organizing concerted activities
• Intentional infliction of emotional distress
• Wrongful termination under Colorado law

The lawsuit cites an audio recording where Buterin reportedly questioned whether rewarding staff for challenging management would encourage more pushback. Fulton's legal team argues this points to retaliatory motive, though the filing does not prove Buterin personally commanded her firing.

Regulatory Agency Status

Prior to filing in federal court, Fulton pursued administrative remedies through federal agencies:

1. June 2: Filed a discrimination charge with the U.S. Equal Employment Opportunity Commission (EEOC).
2. September 23: Received an official Notice of Right to Sue from the EEOC.
3. Pending: An unfair labor practice charge filed with the National Labor Relations Board (NLRB) remains open.

Fulton is seeking back pay, compensatory damages, punitive damages, legal fee coverage, and the formal invalidation of her separation agreement. The court document does not specify a fixed monetary demand.

Market Context and Background

During the period of these legal developments around November 2026, market data showed Ether (ETH) trading around $2,126, while Bitcoin (BTCBTC-0.65%) hovered around $75,083.

Past performance of digital assets is not an indicator of future returns. Market prices are subject to volatility and external market risks. You can review current asset data at Bitkub Market.

The legal action against the Ethereum Foundation represents an ongoing court proceeding. Further updates will depend on court scheduling and administrative rulings from the NLRB.