Péter Szilágyi accuses Ethereum Foundation of secret Geth team funding.
Foundation allegedly offered $5M to spin out Geth developers.Szilágyi fired after confronting leadership about covert team.Geth powers 63% of Ethereum nodes, critical for network stability.Community demands transparency amid Foundation’s strategic shift.
Péter Szilágyi, a lead developer of the Geth Ethereum client, has accused the Ethereum Foundation of covertly undermining his team. The allegations, detailed in a series of public posts, claim the Foundation secretly funded a parallel Geth development team while pressuring the original team to disband.
Geth Developer Alleges Secret Funding and Team Sabotage
Szilágyi, a key figure behind Geth—the software validators use to process Ethereum transactions—revealed that the Ethereum Foundation funded a second Geth team within Nethermind, another Ethereum client. He claims this team operated as an independent fork without collaboration, and the Foundation concealed its existence from him and colleagues Felix and Martin until November 2024. “They launched a hidden team inside Nethermind, fully independent, with no intent to work with us,” Szilágyi stated.
The accusations surfaced after Szilágyi confronted Foundation representative Josh Stark about the covert team. Within 24 hours, he was terminated. The Foundation’s actions, Szilágyi alleges, included encouraging Geth developers to seek jobs elsewhere, proposing salary reductions, and offering $5 million to spin the team into a private company. He claims these offers were made multiple times, which he and his team rejected.
The Ethereum Foundation has not publicly responded to these claims. Attempts to reach them for comment went unanswered at the time of reporting.
Leadership Changes and Strategic Shifts Fuel Tensions
The controversy follows significant changes within the Ethereum Foundation. On June 2, 2025, the organization announced staff layoffs and a restructuring of its core development team to focus on scaling the Ethereum protocol, increasing blobspace, and improving user experience. Critics have long argued that Ethereum’s interface is too complex for mainstream adoption. These changes align with efforts to attract institutional investors and renew interest in the blockchain.
Szilágyi’s accusations point to deeper issues. He claims the Foundation aims to phase out Geth within a few years, transitioning to a research-and-education-focused model. This shift, he argues, threatens the stability of Geth, which powers nearly 63% of Ethereum’s active nodes, according to Ethernodes. The client’s dominance makes its development critical to the network’s reliability and decentralization.
Tomasz Stańczak, co-executive director of the Foundation and founder of Nethermind, denied plans to sideline Geth. He emphasized the client’s importance to Ethereum’s ecosystem and pledged continued support to enhance its performance. However, Szilágyi disputes these assurances, challenging Foundation leadership to deny the $5 million spinout offers and secret funding.
The public feud has raised concerns about governance and transparency within the Ethereum ecosystem. Geth’s role as a cornerstone of Ethereum’s infrastructure means any instability could impact network operations. The Foundation’s recent moves, including a shift to DeFi-driven funding strategies, have drawn scrutiny from developers and stakeholders. Regular financial reports are now promised to improve budget transparency, according to Cointelegraph.
Community and Developer Implications
The dispute highlights the delicate balance of managing decentralized blockchain projects. Geth’s prominence—handling a majority of Ethereum nodes—underscores the need for cohesive development teams. Szilágyi’s allegations suggest internal fractures that could slow protocol upgrades or affect client stability, potentially eroding community trust.
Ethereum’s multi-client funding approach, supporting teams like Nethermind and Besu, aims to ensure decentralization and mitigate risks. However, Szilágyi’s claims of undisclosed funding for a rival Geth team raise questions about the Foundation’s commitment to transparency. The controversy has sparked calls for stronger governance structures to clarify boundaries between the Foundation and its development teams.
As the situation unfolds, Ethereum stakeholders are closely monitoring developments. The resolution of this conflict will be pivotal for maintaining the network’s stability and reinforcing trust among developers and users.
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