Lead Ethereum developer Péter Szilágyi has publicly disclosed that the Ethereum Foundation (EF) secretly financed a parallel Geth client development team at blockchain firm Nethermind. According to Szilágyi, this initiative was deliberately concealed from core contributors of the original Geth team, triggering serious questions about transparency within the organization.
The EF allegedly orchestrated efforts to undermine the established Geth development unit by encouraging team members to defect, proposing salary reductions, and offering $5 million to establish a spin-off venture. These tactics reportedly aimed to destabilize the original development group responsible for Ethereum’s dominant execution client.
Szilágyi’s revelations have ignited substantial concerns regarding internal governance practices and operational transparency at the Ethereum Foundation. The disclosure coincides with broader organizational changes within the EF, including staff reductions and a strategic pivot toward scaling innovations and DeFi-based funding models designed to enhance Ethereum’s utility and long-term viability.
The controversy emerges during a period of heightened institutional interest in Ethereum, with experts warning the scandal could damage developer ecosystem trust and undermine confidence in Ethereum’s governance structures. The fallout potentially jeopardizes community cohesion at a critical juncture for the network’s evolution.