Former Employee Sues Ethereum Foundation, Claims Retaliatory Dismissal After Protesting 'Seppuku' Clause

Internal Conflict Over Foundation's New Policy Develops Into Lawsuit

Kayleen Fulton, a former employee of the Ethereum Foundation, filed a lawsuit on November 4, 2026, against the foundation and co-founder Vitalik Buterin in the U.S. District Court for Colorado.

She claims that her dismissal after disclosing a diagnosis of ovarian cancer constitutes retaliation and discrimination against her disability, opposing conditions that force agreement with the foundation's new policy. The conflict began with a 38-page policy document titled "The Mission of the Ethereum Foundation" published by the foundation on March 13. The document outlined the organization's direction emphasizing resistance to censorship, open source, privacy, and security, but some of its contents sparked backlash among employees.

The contentious issue is a clause referred to as the "source seppuku license" included in the document. It uses the expression of committing suicide with a sword if one violates the pledge to maintain the free publication of software, and according to the complaint, 79 employees supported its removal during the draft stage.

Although the management explained that it was a cultural reference rather than a literal meaning, it remained in the final version as an illustration. Furthermore, on March 20, Bastian Aue, the co-secretary of the foundation, allegedly informed employees that those who did not agree with the policy would be considered to have chosen to resign.

In response, Fulton and her colleague Trent Van Epps created a letter dated March 25, gathering 53 signatures. While they agreed with the direction set by the foundation, they opposed the conditions that forced agreement with the pledge.

Subsequently, the continued employment of the signatories was acknowledged, but the two who drafted the letter were reportedly dismissed on April 6.

Dismissal Less Than Two Weeks After Reporting Cancer Diagnosis, Buterin Also Named as Defendant

Fulton claims that on March 24, she informed the management about her diagnosis of ovarian cancer and the start of treatment, seeking job security. However, the foundation allegedly failed to provide necessary information regarding medical leave and dismissed her less than two weeks later without discussing appropriate measures.

According to the complaint, Aue explained during the dismissal phone call that Fulton’s performance was good and there was no negligence in her duties.

Additionally, the complaint cites a conversation with Buterin that took place on May 1 in Norway. Buterin expressed concerns that if employees could achieve results by "making a fuss," it could encourage similar behavior within the organization. Fulton argues that this statement supports the connection between the organized opposition by employees and her dismissal.

In this lawsuit, Fulton has named six defendants, including Stiftung Ethereum, Ethereum Asia Pacific Limited, Buterin, Aue, and two staffing agencies, alleging discrimination against disabled individuals, retaliatory actions, and violations of rights under the Family Medical Leave Act. Fulton seeks unpaid wages, future wages, compensatory and punitive damages, and has requested a jury trial.

As of now, these claims have not been substantiated in court, and no judicial determination has been made regarding the legality of the dismissal or the liability of the defendants.

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