According to the news shared by Coindesk, the Ethereum Foundation came under the scrutiny of government officials.
The Swiss-based non-profit Ethereum Foundation, a key organization in the Ethereum ecosystem, is currently being investigated by an unidentified government agency. The nature and focus of the investigation has not been disclosed at this time. The information was revealed in a GitHub record in the organization's repository dated February 26, 2024, in which it was stated that they had received a confidential investigation from a government official.
This investigation comes at a time when Ethereum, the world's second largest blockchain by market capitalization, is undergoing significant technological changes. Launched in 2015 following an initial coin offering (ICO) for its ETH token, Ethereum recently implemented a major technical update known as Dencun.
The Ethereum Foundation's website previously included a statement stating that they had not been contacted by any organization requesting privacy. This statement was removed in a GitHub transaction dated February 26, along with the website's search warrant notice. A search warrant notice is a notice that some companies add to their websites to indicate that they have not received a confidential government subpoena or request for documents. If such a request is received, the company may remove the text indirectly indicating receipt of the request.
A lawyer familiar with the matter suggested that a Swiss regulator may have requested documents from the Ethereum Foundation and may be cooperating with the U.S. Securities and Exchange Commission (SEC). The lawyer also noted that the Ethereum Foundation may not be the only entity under scrutiny, with other offshore entities likely being investigated as well.
The SEC is currently reviewing multiple applications for an Ethereum ETF. However, analysts who have followed the process have become less optimistic about the approval of these applications due to the perceived lack of interaction between applicants and SEC officials. The attorney suggested that any rumors of activity between the SEC and its overseas counterparts could be related to the May 23 ETF deadline the SEC is facing.
*This is not investment advice.