A former employee, Kayleen Fulton, has filed a lawsuit against the Ethereum Foundation, accusing her of organizing opposition to an internal authorization clause and of being illegally dismissed after disclosing that she had cancer.
The lawsuit was filed on November 4, 2026. The defendants included the foundation itself, its affiliated entities located in Singapore, executive Bastian Aue, as well as Ethereum co-founder Vitalik Buterin.
Key points of the lawsuit
- Fulton alleges wrongful dismissal, disability discrimination, and interference with their rights to medical leave.
- The complaint acknowledges that management has stated that the expression seppuku in that authorization does not refer to its literal meaning.
- A letter from an employee questioning these authorization conditions gathered 53 signatures.
Fulton Questions the Decision to Fire
Fulton filed a lawsuit in the United States District Court for the Federal District of Colorado, challenging her dismissal on April 6, 2026. She worked at the foundation under the name of Nixo and served as the head of the Protocol Support team, with an annual salary of $195,000.
The complaint alleges that the foundation violated the Americans with Disabilities Act and the Family and Medical Leave Act. Fulton stated that she disclosed her diagnosis of ovarian cancer on March 24, 2026, and accused the foundation of disability discrimination as well as interference with her rights to medical leave.
Authorization regarding seppuku and clarification from management
The focus of the dispute is on the part "Source Seppuku License" within "EF Mandate", which mentions that failure to fulfill commitments to Ethereum would involve suicidal rhetoric. The complaint also acknowledges that management has explicitly denied that it should be taken literally.
The draft authorization began to circulate among employees on February 25, 2026, and was officially released on March 13, 2026. The document outlines the foundation's updated mission, as well as its role in supporting the principles of Ethereum CROPS: anti-censorship, open-source, privacy, and security.
The controversial commitment states that if employees fail to "fulfill their solemn promises to Ethereum," they will "end their own lives with a sword." The lawsuit alleges that employees are faced with a choice: either to accept the direction of this authorization or to leave.
The complaint acknowledges that Aue described the term seppuku as "not in a literal sense," and later stated that this commitment "has nothing to do with the literal meaning of seppuku."
Employees oppose allegations of retaliation
Fulton indicated that she was fired for organizing opposition to those authorization conditions. She collaborated with her colleague Trent Van Epps to draft a letter supporting the foundation's development direction, while also raising doubts about some of the requirements within it.
This letter collected 53 signatures, indicating that the signatories have not resigned. The complaint alleges that Fulton and Van Epps were illegally dismissed for raising objections; Fulton also linked their dismissal to the disclosure of medical information.
Buterin Recording of a Controversial Separation Agreement
This Ethereum Foundation lawsuit cites a portion of a conversation between Fulton and Buterin in Norway on May 1, 2026. The complaint also raises doubts about a severance agreement that offered her one year's salary.
The complaint, quoting Buterin, states that if "people who cause trouble are rewarded with results," employees might use such a method to influence the foundation.
According to Fulton, she signed a severance exemption agreement under pressure, but never received any payment, and later revoked that agreement. She is currently seeking damages and compensation for unpaid wages.
This article was assisted in production by artificial intelligence and has been reviewed by an editorial team.
