Kayleen Fulton, a former senior leader at the Ethereum Foundation, has filed a wrongful termination lawsuit in the U.S. District Court for the District of Colorado. Fulton seeks to challenge a separation agreement that required any dispute to go through arbitration in Singapore, asking the court to void this arrangement and allow her case to be heard in Colorado.
Lawsuit targets foundation leadership and contract terms
The complaint names the Ethereum Foundation, its co-founder Vitalik Buterin, and four other parties as defendants. Buterin has been widely recognized as a key figure behind Ethereum, the world’s second-largest blockchain protocol.
Fulton alleges that she was terminated on April 6, only 13 days after notifying senior management of her ovarian cancer diagnosis. She contends that her dismissal also followed her involvement in leading staff opposition against a controversial internal document.
Following her removal, Fulton signed a separation deal that waived her right to pursue legal claims in exchange for severance. The agreement stipulated that any legal dispute must be settled through arbitration in Singapore. Citing the pressure of losing health insurance, she states she had little choice but to accept the terms at the time.
Fulton later rescinded the agreement and returned the severance payment, now requesting the court to declare the contract invalid and proceed with her lawsuit in the United States.
Other defendants in the case include Stiftung Ethereum, the Swiss registered parent foundation, and its Singapore affiliate, Ethereum Asia Pacific Ltd. Co-Executive Director Bastian Aue and two human resources firms are also listed in the complaint.
Mini dictionary: Stiftung Ethereum is the Swiss-based non-profit entity responsible for coordinating the global operations, funding, and development of the Ethereum open source project.
Mandate controversy and staff dissent
The origins of the dispute center on a document known as the Mandate, distributed to staff on February 25. One section, the “Source Seppuku License,” controversially asked personnel to pledge to “take his or her own life with a sword” if they breached certain principles.
Seventy-nine employees objected and pushed for the removal of this language. Buterin noted to staff that possible revisions were under discussion. However, the final version released March 13 retained the reference in a cartoon form, and the foundation officially registered the document on the Ethereum blockchain.
Bastian Aue, the foundation’s Co-Executive Director, instructed employees to formally accept the Mandate or be considered as having resigned, while clarifying that the pledge was not intended literally.
Fulton disclosed her cancer diagnosis on March 24. The following day, she and fellow team member Trent Van Epps circulated a letter signed by 53 employees, declining to comply with the Mandate as written.
Management ultimately permitted dissenting employees to remain employed. However, the complaint states that Aue dismissed both Fulton and Van Epps about half an hour apart on April 6, providing no explanation for the decision.
| Event | Date | Action | Staff Response |
|---|---|---|---|
| Mandate sent to staff | Feb. 25 | “Source Seppuku License” included | 79 staff call for removal |
| Letter declining Mandate | Mar. 25 | Letter from 53 staff declining terms | Signed by dissenters |
| Fulton and Van Epps dismissed | Apr. 6 | Both fired within 30 minutes | No reason provided |
The lawsuit cites a recorded exchange in which Buterin reflects on the firings, stating that rewarding dissent with results may encourage further pressure from staff within the foundation.
In a recorded internal conversation, Buterin remarked that “if you reward making a stink with outcomes,” staff would learn that raising public pressure could yield internal changes at the foundation.
Nonetheless, the filing acknowledges there is no evidence that Buterin directly ordered Fulton’s termination, and the allegations have not yet been tested in court.
Claims and broader staff impact
Fulton served as lead of the Protocol Support team, coordinating Ethereum’s upgrade processes and running the All Core Developers meetings. She earned a salary of $195,000 per year and reports having a clean record without prior disciplinary issues.
The lawsuit advances 11 claims, including allegations of disability discrimination, violation of medical leave rights, and intentional infliction of emotional distress. Fulton seeks reinstatement of back pay, damages, and legal costs, though the suit does not specify a total amount.
The complaint also describes wider organizational fallout: Fulton’s team was dissolved and most of the 53 signatories to the protest letter have since left the foundation. According to the filing, the foundation, which reportedly holds over 160,000 Ether, reduced its workforce by 20% in June.
Fulton reported her firing to the U.S. Equal Employment Opportunity Commission on June 2 and was later granted the right to sue by September. A separate unfair labor practice claim filed with the National Labor Relations Board remains open.
The lawsuit details that after staff protested the Mandate’s language, the Ethereum Foundation allowed dissenters to keep their jobs, but two key organizers, including Fulton, were dismissed without explanation just weeks after raising these concerns.
