Former Ethereum Employee Sues Foundation and Vitalik Buterin Over Alleged Wrongful Termination and Discrimination

Federal Lawsuit Against Ethereum Foundation

A former employee of the Ethereum Foundation, Kayleen Fulton, has initiated a federal lawsuit against the organization and its co-founder, Vitalik Buterin, claiming that her termination was unjust and rooted in discrimination related to her medical condition. Fulton’s legal action arises from her dismissal shortly after she disclosed her diagnosis of ovarian cancer to management and led efforts against a highly controversial document that included a troubling pledge, perceived as a ‘suicide pledge’.

Details of the Lawsuit

The complaint, filed in the U.S. District Court for Colorado, names several parties, including the Swiss entity of the Ethereum Foundation, Stiftung Ethereum, its Singapore affiliate Ethereum Asia Pacific Ltd., Buterin, executive Bastian Aue, and two HR service firms: Lightsource HR Global LLC and Vensure Employer Services Inc. Fulton contends that her firing on April 6—a mere 13 days after her cancer revelation—constitutes wrongful termination, disability discrimination, and violations of her rights regarding medical leave, as outlined in both federal guidelines and Colorado law.

Claims and Allegations

In her lawsuit, Fulton is pursuing compensation for lost wages, punitive damages, and legal costs, while also seeking to nullify her termination agreement. The crux of the conflict centers around a document called the Mandate, introduced by the Ethereum Foundation’s board on February 25, which allegedly included a section dubbed the "Source Seppuku License". This clause called for contributors to pledge to take their own lives should they fail to adhere to the Mandate's stipulations, leading to significant unrest among employees, with 79 workers advocating for its removal.

Although Buterin acknowledged employee concerns and suggested potential revisions, the finalized document circulated on March 13 retained the contentious language, accompanied by playful illustrations. Fulton, along with a colleague, initiated a protest, gathering support from 53 employees who opposed a mandate necessitating individual endorsement or risking termination. While management did allow dissenters to remain employed, both Fulton and another employee, Trent Van Epps, were let go on April 6, with the complaint asserting that they were deliberately targeted for their protest efforts.

Retaliation and Legal Proceedings

Fulton asserts that her dismissal occurred despite a solid track record at the foundation and no prior disciplinary issues. She claims her requests for job protection and medical leave prior to her firing were ignored. Facing immediate health insurance loss, she signed a separation deal that waived her right to legal action but is now contesting its legitimacy, especially a clause that mandates arbitration in Singapore.

Additionally, the lawsuit references a recorded conversation where Buterin purportedly questioned the implications of rewarding employees for opposing management, which her attorneys argue adds weight to Fulton’s claims of retaliation. The legal filing outlines 11 separate allegations including discrimination based on disability and violations related to medical leave. While Fulton is seeking monetary damages, she has not disclosed a specific figure.

Further Actions

On June 2, Fulton lodged a discrimination complaint with the U.S. Equal Employment Opportunity Commission and received a right-to-sue notice by September 23. Furthermore, she filed a separate charge with the National Labor Relations Board concerning unfair labor practices, which remains unresolved.

In context, it is notable that Vitalik Buterin has publicly shared his views regarding Ethereum's structural role as a Store of Value, emphasizing the broader landscape of the cryptocurrency's evolution.