- Former Ethereum manager Kayleen Fulton has sued the Foundation and Vitalik Buterin over her dismissal.
- She also alleges disability discrimination after disclosing her cancer diagnosis.
Vitalik Buterin and the Ethereum Foundation are facing a lawsuit from former manager Kayleen Fulton, who alleges she was fired after opposing a controversial workplace mandate containing a so-called “Source Seppuku License.” Fulton also claims the Foundation discriminated against her because of her disability and interfered with her medical leave rights after she disclosed an ovarian cancer diagnosis.
Fulton filed the lawsuit on November 4 in a federal court in Colorado. She is seeking compensation for lost wages and other damages, alleging that her dismissal was retaliatory and unlawful. The claims have not been proven, and the court has yet to determine liability.
Why Ethereum Foundation Employees Opposed the Mandate
The dispute centers on a mandate published by the Ethereum Foundation on March 13. The document outlined commitments to censorship resistance, open-source development, privacy and security.
However, one provision triggered strong opposition among employees. Known as the “Source Seppuku License,” the clause included an illustration of software developers committing ritual suicide with swords if they failed to uphold their commitments.
According to Fulton’s complaint, employees challenged the provision before the mandate was published. A total of 79 employees voted to remove it from an earlier February draft.
Despite the opposition, the Foundation retained the clause in the final mandate. Co-Executive Director Bastian Aue later clarified that the language was not meant to be taken literally.
Employees were nevertheless left with a choice between accepting the mandate or resigning, according to the lawsuit.
Fulton Disclosed Cancer Diagnosis Before Her Dismissal
Fulton, also known as Nixo, previously served as the Foundation’s Chief of Protocol Support. On March 24, she disclosed her ovarian cancer diagnosis to the organization.
She also joined fellow employee Trent Van Epps in writing a letter that supported the Foundation’s broader direction but opposed mandatory compliance with the controversial mandate.
The letter received signatures from 53 other employees. However, Fulton and Van Epps were dismissed on April 6, while the other signatories retained their positions.
Fulton alleges that her dismissal was retaliation for opposing the mandate. She also accuses the Foundation of disability discrimination under the Americans with Disabilities Act and interference with her rights to medical leave.
The complaint further challenges the circumstances surrounding her departure. Fulton claims she did not voluntarily sign the separation agreement and is seeking lost wages and additional damages.
The court has yet to determine whether the Foundation violated employment laws or whether her medical condition played any role in the termination decision.
Recorded Conversation With Vitalik Buterin
The complaint also references a partially recorded conversation between Fulton and Buterin on May 1 in Norway. During the discussion, Buterin questioned whether rewarding employees for “making a stink” could encourage others to use similar pressure tactics.
Fulton presents the remark as evidence supporting her retaliation claims. However, the comment alone does not establish that Buterin or the Foundation violated employment laws.
Ethereum Foundation Faces Wider Leadership Challenges
The lawsuit comes as the Ethereum Foundation faces concerns about employee departures and its long-term funding commitments.
According to the complaint, at least eight senior employees had left the organization by September. Co-Executive Director Hsiao-Wei Wang also took leave on April 6 before resigning in June.
A July board update listed four directors, including Buterin, highlighting changes in the Foundation’s leadership structure.
Funding is another concern. Van Epps has estimated that teams responsible for Ethereum’s core development need approximately $30 million annually. This comes as the Foundation faces pressure to manage its spending.
The lawsuit adds to scrutiny of the Foundation’s internal management, employee relations and leadership decisions. However, the allegations remain unproven, and the legal proceedings will determine whether the defendants bear any responsibility.
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