#bitcoin # Ethereum
Ethereum Foundation Under Fire Over $96.9 Million Transfer
On August 23, 2024, the Ethereum Foundation made headlines with a major financial move, transferring 35,000 ETH, worth approximately $96.9 million, to a deposit address on the Kraken platform.
The transfer, which was highlighted by analytics firm Arkham Intelligence and shared on social media platform X, quickly sparked debate within the crypto community, raising questions about the institution’s transparency and financial practices.
The Ethereum Foundation, a nonprofit organization dedicated to the development of Ethereum and its related technologies, faced criticism from some community members who were concerned about the timing and communication surrounding the transfer. One user expressed his frustration on X, calling for better financial disclosures from the foundation and questioning the rationale behind such a large transfer without prior notice.
In response to the concerns, Ethereum Foundation CEO Aya Miyaguchi explained that the transfer was part of the foundation’s routine “treasury management activities.” She explained that the foundation operates on an annual budget of about $100 million, which is mainly allocated to grants and salaries, and that some recipients of these funds require payment in fiat currency.
Miyaguchi also noted that regulatory complexities had delayed the institution's treasury activities earlier in the year, limiting its ability to share plans in advance.
Despite Miyaguchi’s explanation, some community members remained dissatisfied. Gabriel Shapiro, a cryptocurrency advocate and co-founder of Metalex Labs, criticized the Ethereum Foundation for what he saw as a lack of a clear strategy to maximize the value of Ethereum and support the broader Ethereum network. Shapiro argued that the foundation’s wealth and potential conflicts of interest could hinder the growth of the cryptocurrency sector.
Mark Zeller, founder of the Aave-Chan initiative, also expressed his dissatisfaction with the foundation’s spending, questioning the allocation of its $100 million annual budget. Zeller highlighted the modest pay received by the Geth team, responsible for critical work on the Ethereum network, and suggested that after delivering major updates like Purge and Verge, the foundation should consider defunding and dissolving.
It is worth noting that Vitalik Buterin, the co-founder of Ethereum, also recently transferred 400 ETH, equivalent to about $1.05 million, to the cryptocurrency mix Railgun. The transaction, which took place on August 19, was confirmed by Web 3.0 analytics platform SpotOnChain, which reported that over the past 10 months, Buterin transferred about 662 ETH, worth about $1.91 million, to Railgun.
