• Former Ethereum Foundation manager Kayleen Fulton alleges she was fired after opposing the Foundation’s “Source Seppuku License.”
  • She also claims disability discrimination and interference with medical leave rights after disclosing an ovarian cancer diagnosis.
  • The allegations have not been proven, and the court has not ruled on liability.

Kayleen Fulton, a former Ethereum Foundation manager, has filed a lawsuit against the Foundation and co-founder Vitalik Buterin with respect to her termination.

Fulton claims in her complaint filed on November 4 in the federal court for Colorado that she was terminated since she organized employees against a requirement that contained a ritual-suicide pledge. She also makes a claim of disability discrimination after revealing to her employer her ovarian cancer diagnosis.

Who filed, and against whom

Fulton, also known as “Nixo”, was the chief of Protocol Support. There are six co-defendants in the lawsuit: Stiftung Ethereum (the Swiss Ethereum Foundation), Ethereum Asia Pacific Limited (a Singapore affiliate), the payroll companies Lightsource HR Global and Vensure Employer Services, Bastian Aue, and Buterin.

The lawsuit revolves around employment decisions of the Foundation and not the blockchain operations of Ethereum. The allegations have not yet been proven.

The mandate and its seppuku clause

The Foundation released a mandate on March 13 that contained provisions about censorship resistance, open source, privacy, and security. It included a “Source Seppuku License” clause, which was illustrated by the Foundation as contributing software developers committing suicide with swords for their failure to keep the pledges made.

The employees protested the suicide clause prior to the publication of the mandate. The complaint claims that 79 employees voted in favor of taking the clause out of the February draft.

But the Foundation still retained the clause in the mandate. In a later clarification, Co-Executive Director Bastian Aue said that the clause should not be taken literally. However, the employees had no choice but to accept the mandate or resign.

Cancer diagnosis, then dismissal

Fulton revealed her cancer diagnosis on March 24. She wrote a letter, together with Trent Van Epps, that expressed support for the Foundation’s direction but rejected the idea of being forced to comply with the mandate, particularly the suicide clause.

Fifty-three of her co-employees signed the letter. The 53 employees retained their positions in the company. However, Aue dismissed both Fulton and Van Epps on April 6.

Fulton claimed that her termination was a retaliation and that she experienced disability discrimination as outlined in the Americans with Disabilities Act and interference with her medical leave rights.

She also said that she did not sign the separation agreement voluntarily. She said that she is entitled to lost pay and other damages. Whether her illness played any role in her termination still remains to be resolved.

The recorded Buterin conversation

Fulton partially recorded a conversation with Buterin on May 1 in Norway. In her complaint, Fulton notes that Buterin questioned whether rewarding employees for “making a stink” would inadvertently set a precedent for other employees to deliver similar pressure.

Fulton referred to Buterin’s remark as evidence of retaliatory conduct by her employers. However, Buterin’s remark does not prove his and the Foundation’s liability.

A Foundation already losing people

By September, at least eight senior employees had left, the lawsuit says. Co-executive director Hsiao-Wei Wang took leave April 6 and resigned in June. A July board update listed four directors, including Buterin.

Cryptopolitan reported another concern: Van Epps estimates core-development teams need roughly $30 million annually as Foundation spending declines.

What it may mean for institutional confidence

Investor concerns predate the lawsuit. An August CoinShares survey tied Ether’s weaker growth outlook partly to Foundation leadership turnover. An EY survey found 81% of investors with spot crypto exposure preferred ETFs or similar products.

Farside data show U.S. spot Ether ETFs lost a net $365.2 million during November 2–6. Four days saw outflows, interrupted by $53 million in inflows on November 4. The figures do not establish any link to the lawsuit. Most flows occurred before or on the filing date, amid wider market uncertainty.

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FAQs

What is the "Source Seppuku License" in the Ethereum Foundation Mandate?

It was a clause in the Foundation's March 13, 2026 mandate stating that software maintainers would "take his or her own life with a sword" for failing to uphold its pledges, which executive Bastian Aue later clarified was "not meant to be taken literally."

Who is being sued and where was the case filed?

Kayleen Fulton filed in the U.S. District Court for the District of Colorado on November 4, 2026, naming the Ethereum Foundation, its Singapore affiliate, co-executive director Bastian Aue, Vitalik Buterin and others, six defendants in total, according to The Block.

Did the lawsuit cause Ether's price to fall?

No source establishes that. Farside data shows Ether ETF outflows that predate the November 4 filing, and CoinShares tied weaker Ether sentiment to Clarity Act delays and Foundation staff turnover rather than the suit.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Micah Abiodun

Micah Abiodun makes good use of his Environmental Engineering and Management (MSc) at Tallinn University of Technology (TalTech) to polish content and price prediction news at Cryptopolitan. Now on his 7th year in the crypto media space, he covers major cryptos, altcoins, DeFi, stablecoins, macro trends, and emerging tech.​​​​​​​​​​​​​​

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