The Ethereum Foundation has firmly denied involvement in a recent $13 million Ethereum sale tied to old ICO-era wallet addresses, clarifying confusion sparked by on-chain data.
Key Takeaways
- 1A wallet flagged for selling nearly 3,000 ETH was no longer controlled by the Ethereum Foundation, despite past ties.
- 2Co-Executive Director Hsiao-Wei Wang emphasized that the wallet was from the ICO era and not part of current operations.
- 3The Foundation now holds less than 0.3% of the total ETH supply, down from about 9% at launch.
- 4Vitalik Buterin warned of risks from growing corporate ETH ownership, urging careful treasury management.
What Happened?
Blockchain trackers recently noticed significant ETH transfers totaling nearly $13 million from an address tied to a 2017 Ethereum Foundation wallet. This raised alarms within the crypto community, especially as Ethereum’s price surged close to its all-time high.
However, the Ethereum Foundation swiftly denied any involvement in the transactions. Co-Executive Director Hsiao-Wei Wang clarified on X that the wallet was no longer under Foundation control, even though it once received ETH from Foundation-related sources.
It was not the Ethereum Foundation’s operation.
,hww.eth | Hsiao-Wei Wang (@hwwonx) August 13, 2025
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
Ethereum Foundation Clears the Confusion
Reports flagged two main transactions totaling 2,975 ETH, equivalent to around $12.8 million. The wallet had received about 20,756 ETH back in 2017 from a Foundation-linked source, sparking speculation that the Foundation might be selling tokens during the current price rally.
But Wang publicly stated, “It was not the Ethereum Foundation’s operation.” She also explained that although the Foundation once held around 9% of all ETH during the 2014 ICO, it currently holds under 0.3% of the total supply.
“So you can probably find tons of addresses linked to EF after ten years,” she added, highlighting the long lifespan and complexity of Ethereum’s wallet history.
Foundation’s Push for Transparency and Treasury Reform
The Foundation’s past ETH sales were previously criticized for being opaque and poorly communicated. In response, it launched a major treasury management reform. This included efforts to improve transparency, enforce financial discipline, and participate in decentralized finance (DeFi) to both grow its treasury and support ecosystem development.
In July, the Foundation executed a planned sale of 10,000 ETH to SharpLink Gaming, now the second-largest corporate ETH holder. This transaction was done on-chain to minimize market disruption and aligned with the Foundation’s strategy to diversify ETH ownership among more stable, regulated entities.
Vitalik Buterin’s Caution on Corporate ETH Control
Ethereum co-founder Vitalik Buterin weighed in on the broader implications of ETH ownership shifting toward corporations. While he acknowledged the benefits of corporate treasuries embracing ETH, he also issued a warning.
Are ETH Treasuries good for Ethereum?@VitalikButerin thinks they can be:
,Bankless (@BanklessHQ) August 7, 2025
“ETH just being an asset that companies can have as part of their treasury is good and valuable… giving people more options is good.”
But he also issues a warning:
“If you woke me up 3 years from now… pic.twitter.com/W55oUD7Lke
He described scenarios where companies overleverage ETH holdings as collateral, risking large-scale liquidations during market downturns. Such behavior could introduce systemic volatility and harm Ethereum’s stability.
“Indirect exposure is good, but risky behavior is not,” Buterin cautioned.
CoinLaw’s Takeaway
I like that the Ethereum Foundation came out quickly and cleared the air. In crypto, rumors spread fast, especially when big wallets move ETH near price highs. But this wasn’t a dump. It’s a clear example of why transparency matters in Web3, especially from major players like EF. They’ve also done a lot to step back from holding too much ETH themselves, and that’s healthy for the ecosystem. What worries me more is the rise in corporate ETH hoarding.
