Ethereum Foundation and Vitalik Buterin face lawsuit over alleged wrongful termination
A former staff member claims she was dismissed after refusing to endorse a controversial suicide‑pledge clause, prompting a federal suit that includes Vitalik Buterin as a defendant.
Key takeaways
- A former Ethereum Foundation employee alleges she was fired for not signing a suicide‑pledge provision in a corporate mandate.
- The complaint lists Vitalik Buterin and the foundation’s core‑engineer payroll entity among the defendants, seeking back wages and damages.
- The case will test jurisdiction in Colorado and may influence how blockchain foundations manage internal governance disputes.
According to a filing in a Colorado federal court, Kayleen Fulton, who previously led the protocol‑support function at the Ethereum Foundation, says she was terminated 13 days after revealing an ovarian‑cancer diagnosis. The suit alleges her dismissal was retaliation for refusing to sign a “suicide pledge” that appeared in a staff‑wide Mandate issued by the foundation’s board earlier this year. The complaint names Vitalik Buterin, the Ethereum Foundation and the organization that compensates core developers—reported to control more than 160,000 ETH—as respondents.
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Mandate controversy and staff pushback
In February, the foundation circulated a document outlining a new internal policy. One page contained language urging employees to end their own lives with a sword if they breached the policy. Although 79 staff members voted to delete the clause, the board chose to keep it. Co‑executive director Bastian Aue reportedly instructed employees to provide a written affirmation of the pledge or be considered to have resigned. After Fulton disclosed her cancer diagnosis on March 24, she and colleague Trent Van Epps sent a letter the next day, signed by 53 employees, stating they would not comply with the pledge.
Termination and recorded comments
The complaint states that on April 6, Aue dismissed both Fulton and Van Epps within minutes of each other without offering a specific reason. A recorded conversation referenced in the filing captures Buterin saying, “if you reward making a stink with outcomes, then everyone will know that essentially making that kind of a show both internally and externally is the way to cause outcomes inside of the EF.” The lawsuit argues that this remark reflects a punitive stance toward the staff’s dissent.
Foundation’s legal stance
Representatives for the foundation’s Singapore affiliate have denied any retaliatory motive and contend that Fulton’s severance agreement requires arbitration in Singapore. Fulton claims she withdrew from that agreement and returned the severance payment. She is seeking compensation for a $195,000 salary and additional punitive damages. Prior internal policy shifts have moved ETH’s price: the token rose roughly 5 % after the Mandate’s release in March and dropped nearly 7 % when a 20 % staff reduction was announced in June, per BeInCrypto.
What to monitor
The next pivotal moment will be the Colorado judge’s ruling on whether the case stays in U.S. federal court or is dismissed for lack of jurisdiction. Further comments from the Ethereum Foundation, Vitalik Buterin or the payroll entity could shape public perception and potentially affect ETH’s market dynamics. The outcome may also set a precedent for how decentralized project foundations address internal governance conflicts and employee rights.

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