TLDR
- The Ethereum Foundation denied conducting a recent $12.8 million ETH sale linked to an old ICO-era wallet.
- Co-Executive Director Hsiao-Wei Wang stated the wallet in question is no longer operated by the Ethereum Foundation.
- The Foundation originally held about 9 percent of ETH supply after the 2014 ICO but now holds less than 0.3 percent.
- A July sale of 10,000 ETH to SharpLink Gaming marked part of the Foundation’s strategy to reduce its holdings.
- Vitalik Buterin warned that growing corporate ETH ownership could create systemic risks if companies overleverage their reserves.
The Ethereum Foundation has rejected claims that it conducted a recent $12.8 million Ethereum sale linked to old ICO wallets. On-chain data had shown two transactions totaling 2,975 ETH from an address tied to the Foundation’s early allocations. However, leadership clarified that the wallet is no longer under its control.
Ethereum Foundation Clarifies ICO Wallet Ownership
Reports emerged after blockchain trackers flagged movements from a wallet previously linked to the Ethereum Foundation. The transactions involved a combined 2,975 ETH, raising speculation about Foundation-led sales. Observers noted the address originally received ETH in 2017 from another Foundation-associated wallet.
Hsiao-Wei Wang, co-Executive Director, addressed the issue on X, stating,
“It was not the Ethereum Foundation’s operation.”
She confirmed the Foundation no longer manages the wallet despite its ICO-era ties. This clarification aimed to separate current holdings from historic allocations.
It was not the Ethereum Foundation's operation.
Fun fact: Back in the 2014 ICO, ~9% of the ETH supply was allocated to the EF; now EF holds under 0.3% of the total supply. So you can probably find tons of addresses linked to EF after ten years. https://t.co/g0UMwtO4Le
— hww.eth | Hsiao-Wei Wang (@hwwonx) August 13, 2025
The Ethereum Foundation received about 9% of ETH supply during the 2014 ICO. Over the years, it reduced its stake through planned transactions. According to Wang, Foundation-controlled addresses now hold under 0.3% of the total ETH supply.
Corporate Entities Acquire Growing ETH Reserves
Foundation leaders have emphasized their deliberate approach to reducing Ethereum holdings. In July, the Ethereum Foundation sold about 10,000 ETH to SharpLink Gaming, now the second-largest corporate ETH holder. The sale occurred on-chain to limit market disruption.
These transactions reflect a broader trend of corporate entities acquiring significant ETH reserves. Public companies now collectively hold more than $14 billion in Ethereum, consolidating a notable share of supply. The Foundation’s strategic sales aim to diversify ownership across different market participants.
The move toward corporate treasuries indicates a shift in ETH distribution. The Ethereum Foundation prefers transferring holdings into regulated, transparent entities. This transition also reduces its direct influence on Ethereum’s circulating supply and governance.
Vitalik Buterin Warns of Corporate ETH Risks
Ethereum co-founder Vitalik Buterin acknowledged the potential risks of growing corporate ETH ownership. He noted such companies could boost adoption by offering indirect exposure to mainstream investors. However, he warned that overleveraging ETH reserves could create systemic risks.
Buterin described a scenario where companies use ETH as collateral for excessive borrowing. In market downturns, forced liquidations could amplify volatility and undermine confidence. These risks underscore the importance of balanced ETH distribution and responsible treasury management.
Meanwhile, Ethereum’s price has surged over the past week. ETH trades at $4,776, up around 30% over seven days and 2.35% below its all-time high. The Ethereum Foundation’s reduced share highlights its evolving role as ETH continues its upward trajectory.
