In the latest Ethereum news, a former Ethereum Foundation (EF) employee, Kayleen Fulton has sued the organization for terminating her employment. The lawsuit also adds Ethereum co-founder Vitalik Buterin and executive director Bastian Aue as co-defendants.
Fulton, who is known within the Ethereum community as Nixo, claimed that she was fired by the Foundation in April for organizing an objection to a part of the EF Mandate. She led the EF Protocol Support Team before her dismissal and claimed she had received an excellent appraisal from her supervisor seven months earlier.
The revised Mandate redefined Ethereum’s focus around the CROP (censorship resistance, open source, privacy and security) principles. However, a part of the Mandate appears to be at the center of the controversy.
Fulton is also alleging disability discrimination and interference with her medical leave rights. She claimed she was fired 13 days after informing the management of a cancer diagnosis and plans to commence treatment.
Ethereum Foundation Mandate Included Seppuku Pledge
According to the lawsuit, a "Source Seppuku License" section in the Mandate led to Fulton termination. The section states that employees would take their life with a sword if they fail to uphold their promise to Ethereum.
Fulton claimed that the clause raised concerns and pushback among employees during the draft stage, but the Ethereum Foundation refused to change it. The lawsuit noted that the final version of the Mandate, published on March 13, included the suicide pledge, with the only changes being the use of a cartoon font, cartoon cats, and a winking anime finger.
It added that Aue issued an ultimatum on Friday, March 20, 2026, for everyone to commit to the Mandate or consider themselves resigned by Monday. However, Fulton and another EF employee, Trent Van Epps, organized a letter supporting the Mandate but opposing some of the conditions. This letter was eventually signed by 53 employers.
While the lawsuit acknowledged that Aue stated that the pledge was not to be taken literally, it stated that the EF director fired Fulton and Van Epps a few days after they organized the objection. Fulton also claimed that she was made to sign release documents under duress.
Buterin Says Ethereum Crypto Value is Its Stability
Meanwhile, Buterin gets dragged into the lawsuit over comments he made after the dismissal. According to the lawsuit, Buterin had explained the rationale behind the dismissal as a deterrent. In a telephone conversation recorded by Fulton, Buterin stated that the core question concerned what the Ethereum Foundation incentivized.
He’s quoted as having said, "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 employee is now seeking damages and unpaid wages. The lawsuit was instituted in Colorado under the Americans with Disabilities Act.
The lawsuit highlights internal controversies and disputes within the Ethereum Foundation. The organization has seen more than several senior members leave this year.
While the crisis within the Ethereum Foundation has not significantly affected its development, its price has suffered significantly. ETH is now closer to $2,100 after falling 15% in the last 30 days, according to CoinMarketCap.
The asset shed most of its gains a few months ago and now stands 28% below its price at the start of the year. However, Buterin is not bothered by the price performance, recently posting that people should see the asset as a store of value.
He argued that the fixation on token burn as the source of Ethereum’s value is unnecessary because ETH’s value comes from its stability as a decentralized, secure network.
Oluwapelumi Adejumo is an experienced cryptocurrency journalist who has contributed to leading blockchain news platforms, including CryptoSlate and BeInCrypto.
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