TLDR
- The Ethereum Foundation transferred 160,000 ETH (worth $654 million) to a wallet previously linked to token sales on platforms like Kraken
- Co-Executive Director Hsiao-Wei Wang stated the transfer was part of a planned wallet migration, not a sale
- Former lead developer Péter Szilágyi revealed he earned approximately $625,000 over six years at the foundation
- Szilágyi’s resignation letter alleged that project success within Ethereum depended heavily on proximity to foundation leadership
- The foundation has recently implemented structural changes including developer layoffs and a plan to manage its remaining ether reserves
The Ethereum Foundation moved 160,000 ether to a new wallet address on October 21, 2025. The transfer was worth approximately $654 million at the time of the transaction. Blockchain analytics firm Arkham Intelligence first reported the movement of funds.
THE ETHEREUM FOUNDATION JUST TRANSFERRED $650M $ETH
The Ethereum Foundation just transferred $654M of ETH to a wallet used for selling in the past.
This wallet has only made significant transfers to:
Kraken Deposit
SharpLink Gaming
A Multisig that sells ETH pic.twitter.com/hqdQINzx0P— Arkham (@arkham) October 21, 2025
The receiving wallet has a transaction history that includes transfers to Kraken Deposit, SharpLink Gaming, and a multisignature address. Arkham noted that the multisig wallet had been used to liquidate ether in the past. This transaction history raised questions about the foundation’s intentions with the transferred funds.
Hsiao-Wei Wang serves as co-Executive Director of the Ethereum Foundation. Wang responded to the public attention on social media platform X. She stated that the transfer was part of a planned wallet migration rather than a token sale.
The timing of the transfer drew attention from the Ethereum community. Observers noted that the movement of funds occurred during ongoing discussions about the foundation’s internal operations. The scale of the transfer ensured it remained a topic of discussion among blockchain analysts.
Developer Compensation Debate
Former Ethereum Foundation lead developer Péter Szilágyi resigned from his position two days before the wallet transfer. He shared a letter he had previously sent to foundation leadership. The letter outlined concerns about compensation and organizational structure.
Szilágyi disclosed that his total compensation over six years at the foundation amounted to roughly $625,000 before taxes. He noted this figure in contrast to Ethereum’s market cap growth during the same period. The network’s valuation had grown from zero to $450 billion during his tenure.
The letter also alleged that success for new Ethereum projects depended on proximity to the foundation’s leadership circle. Szilágyi specifically mentioned connections to co-founder Vitalik Buterin as a factor. These claims sparked debate within the Ethereum community about resource allocation and project support.
Wang addressed these concerns in a public statement on October 22, 2025. She acknowledged that veteran builders at the foundation were “underpaid for the value that you brought.” Her response came shortly after Szilágyi’s resignation became public knowledge.
Foundation Structural Changes
The Ethereum Foundation has implemented several organizational changes in recent months. These changes include developer layoffs and new policies for managing the foundation’s ether holdings. The foundation stated these measures aim to address long-term sustainability.
The foundation continues to fund development and research projects within the Ethereum ecosystem. Recent months have seen both small token sales and financial support for independent DeFi projects. However, these previous transactions were typically under $10 million in value.
The October 21 transfer was 16 times larger than the foundation’s most recent major sale. That previous sale had occurred one month earlier to fund research and development activities. The difference in scale between the two transactions contributed to increased scrutiny.
Community members have been monitoring the foundation’s financial activities closely. The transparency of blockchain transactions allows observers to track movements of foundation-controlled funds. This visibility has led to regular discussions about how the foundation manages its resources.
The foundation has not announced specific plans for the transferred 160,000 ETH. Wang’s statement about wallet migration provided limited details about future uses of the funds. The destination wallet’s transaction history remains a point of interest for blockchain analysts tracking the foundation’s activities.
