The ethereum Foundation (EF) has been investigated by an undisclosed “state authority.” according to a ethereum/ethereum-foundation-website/commit/769b30603504b4b5e8f601f8014691a8d1821390″ target=”_blank” rel=”noopener nofollow”>confirmation message On GitHub, the EF received a “voluntary consultation” from the authority, accompanied by a confidentiality requirement.
The details and scope of the investigation remain undisclosed, leading to speculation and uncertainty within the ethereum community. However, this is the first time in the history of the ethereum Foundation that it has faced such legal action.
ethereum Foundation Removes Canary Court Order
In a significant development, the ethereum Foundation removed its Warrant Canary from its website, indicating that it has been subpoenaed by a US government agency. according to former investment banker Husslin Narwal.
For further context, a canary order is a method used by organizations to communicate to the public that they have not received any secret subpoenas or government requests for user data or surveillance. It is a way for organizations to indicate their compliance with legal requests without directly revealing confidential information.
Narwal further suggested that the inclusion of a confidentiality requirement suggests a gag order, which restricts or prohibits certain individuals or entities from speaking or disclosing certain information to the public or other parties, limiting the Foundation's ability to disclose information about the investigation.
Additionally, Narwal highlighted several key points, including the foundation's compliance with authorities and willingness to provide private data. The delay in ethereum Exchange Traded Funds (ETF) and the alleged lack of communication between the US Securities and Exchange Commission (SEC) and ETF issuers have led to speculation that the investigation may be related to the ETF rejection.
Speculation increases
Narwal also mentioned the recent “weakness” in ethereum price, possibly influenced by supposed insiders anticipating a negative result of the SEC. He suggested that the SEC may find evidence that casts doubt on ethereum's decentralization, such as a concentration of token ownership.
Furthermore, Narwal mentioned earlier reports suggesting significant Chinese ownership of eth or investigation related to fraud or tax matters. Narwal concluded his analysis by stating:
Without more information from the Foundation or state authorities, traders will likely assume the worst and take risks.
Overall, the ethereum Foundation investigation by an anonymous state authority has created uncertainty and speculation within the ethereum community. The removal of the Canary Warrant and the confidentiality requirement have limited the foundation's ability to provide details about the investigation.
As the situation develops, market participants are eagerly awaiting more information to clarify the scope of the investigation and its potential. impact in the ethereum ecosystem.
Despite the growing speculation surrounding the ethereum Foundation, eth has managed to regain $3,289, along with a 4% gain in the last 24 hours.
Featured image from Shutterstock, chart from TradingView.com
