Ethereum Fund Under Government and SEC Scrutiny

According to reports, the GitHub repository of the Ethereum Foundation is currently under investigation by an undisclosed government entity. This probe into the Swiss non-profit organization comes on the heels of Dencun, the largest Ethereum upgrade since the network transitioned to proof of stake (PoS), which was unveiled on March 13, 2024.

Several unspecified elements remain at this juncture concerning certain reports related to the Ethereum Foundation. GitHub’s commitment statement on February 26, 2024, explicitly stated: “We have received a voluntary investigation from a government agency, wherein security clearance is a mandatory requirement.”

The footer commitment by GitHub dated February 26 has been removed, along with the Ethereum Foundation’s assurance, in which the organization denied any engagement with “any agency in the world about undisclosed contacts.”

Moreover, the Securities and Exchange Commission (SEC) is believed to be actively pursuing legal measures to classify Ethereum, the second-largest prominent cryptocurrency, as a security.

According to U.S. companies served with subpoenas, the SEC’s investigative request requires companies to provide documents and financial records pertinent to their commitments with the Ethereum Foundation.

Related: Ethereum Faces $4.2 Million in Liquidations

The disclosure of subpoenas comes at a pivotal time for the cryptocurrency community as the deadline for Ethereum ETFs approaches. Renowned ETF analyst James Seyffart believes the SEC will ultimately reject applications before May 23.

According to a lawyer familiar with the matter, it is possible that the Swiss regulatory body has issued document requests to the Ethereum Foundation and may be cooperating with the U.S. Securities and Exchange Commission (SEC).