A significant transfer of 160,000 Ether (ETH) by the Ethereum Foundation, valued at approximately $654 million, has intensified ongoing scrutiny into the organization’s transparency and governance.
The non-profit foundation moved the cryptocurrency to a digital wallet previously linked to token sales, according to data from blockchain analytics firm Arkham Intelligence. Arkham reported that this specific wallet has historically facilitated substantial transfers to major exchanges and multisignature wallets used for selling ETH.
Hsiao-Wei Wang, co-executive director of the Ethereum Foundation, quickly addressed the community concerns on social media. She stated that the transaction was a “scheduled wallet migration” and not an indication of an impending sale of the assets.
Despite the official clarification, the transfer sparked fears of potential downward pressure on the cryptocurrency market, with Ethereum’s price reportedly dropping 1.09% in the 24 hours preceding the foundation’s explanation. Analysts and users continue to voice doubts about the foundation’s internal fund management and its long-standing governance issues.
The incident comes as internal criticism against the foundation has resurfaced. Péter Szilágyi, a former director of the Geth client, recently shared a 2024 letter alleging that the success of new Ethereum-related projects heavily depends on connections with an “inner circle” including co-founder Vitalik Buterin.
Szilágyi also revealed that his total compensation for six years of work amounted to $625,000, contrasting sharply with Ethereum’s market capitalization, which has reached hundreds of billions of dollars. His statements have fueled a debate within the community regarding developer compensation and the demand for greater financial transparency.
In recent months, the Ethereum Foundation has undertaken a restructuring process. This includes staff reductions within development teams and the formulation of a new strategy for managing and allocating its remaining ETH reserves.
These measures reflect the foundation’s efforts to adapt to an increasingly competitive blockchain environment. However, they have also reignited discussions about how a non-profit entity should balance its commitment to decentralization with the need for sustainable financial resources.
Observers note that the foundation faces a complex challenge. It must maintain community trust while ensuring the technical and financial continuity of the Ethereum ecosystem, especially following its transition to the Proof of Stake model. Large institutional wallet movements often have a psychological impact on the market.
Ethereum remains the world’s second-largest cryptocurrency by market capitalization. Nevertheless, the narrative surrounding the foundation’s governance and transparency is increasingly influencing long-term market perception, particularly among institutional investors who closely monitor ETH flows from associated addresses.