Ethereum Foundation Faces Backlash Over Lack of Transparency in $100 Million Kraken Transfer
Sunday, 25 August 2024, 02:54
Ethereum Foundation's Controversial Transfer
The Ethereum Foundation is under fire for transferring 35,000 ETH, worth about $100 million, to the Kraken exchange without informing the community. On August 23, on-chain analytics firm Lookonchain reported the transaction, sparking widespread concern.
Foundation's Budgetary Justification
- In response, Aya Miyaguchi, the Executive Director of the Ethereum Foundation, clarified that the transfer aligns with the Foundation's $100 million annual budget.
- This budget supports grants and salaries, some of which require fiat payments.
- Miyaguchi explained that the Foundation couldn't disclose the transaction beforehand due to regulatory constraints.
Community Response
Despite Miyaguchi's explanation, the crypto community remains divided. Many criticized the Foundation for not being transparent about its financial decisions.
- Crypto lawyer Gabriel Shapiro noted that transparency and accountability shouldn't lose significance because activities aren't on-chain.
- According to him, the Foundation's explanation does not hold water because it suggests a lack of commitment to transparency.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.