A former Ethereum Foundation employee has filed a federal lawsuit against the foundation and Ethereum co-founder Vitalik Buterin, alleging wrongful termination, disability discrimination, and violations of medical leave rights. The complaint, filed in the U.S. District Court for the District of Colorado, claims Kayleen Fulton was dismissed on April 6, just 13 days after informing senior management of an ovarian cancer diagnosis.
Defendants and Claims
The lawsuit names six defendants: the Ethereum Foundation's Swiss entity, Stiftung Ethereum; its Singapore affiliate, Ethereum Asia Pacific Ltd.; executive Bastian Aue; Buterin; and two human resources service providers, Lightsource HR Global LLC and Vensure Employer Services Inc. Fulton alleges disability discrimination, retaliation, interference with medical leave rights, and wrongful termination under federal and Colorado law. She seeks lost wages, compensatory and punitive damages, legal fees, and invalidation of her separation agreement.
Dispute Over the Mandate
At the center of the dispute is an organizational document known as the Mandate, distributed by the foundation's board to employees on Feb. 25. According to the complaint, the document contained a provision called the "Source Seppuku License," which included a pledge that contributors would take their own lives with a sword if they failed to uphold its terms. The provision sparked widespread opposition among employees, with 79 staff members voting to remove it. Buterin, a member of the foundation's board, subsequently told employees that significant changes were being considered in response to their concerns. However, the final version, published March 13, retained the disputed language in a stylized illustration featuring cartoon characters. The foundation also recorded the document on the Ethereum blockchain, according to the lawsuit.
Staff Protest and Alleged Retaliation
Fulton and another employee, Trent Van Epps, organized a protest letter signed by 53 foundation employees opposing a requirement to personally endorse the Mandate or face termination. Although management ultimately allowed dissenting employees to retain their jobs, Fulton and Van Epps were fired on April 6. Their complaint alleges they were selectively targeted for organizing the protest.
Fulton alleges the foundation dismissed her less than two weeks after she disclosed her cancer diagnosis, despite a strong performance record and no prior disciplinary action. The complaint claims management failed to address her request for employment protection or medical leave before terminating her without a specific explanation. Facing the imminent loss of health insurance, Fulton signed a separation agreement waiving legal claims, but she is now challenging its enforceability, including a provision requiring arbitration in Singapore.
The lawsuit cites a recorded conversation in which Buterin allegedly questioned whether rewarding employees for challenging management would encourage further dissent. Her attorneys argue the remarks support claims of retaliatory dismissal, although the complaint does not establish that Buterin personally ordered her termination.
Legal Proceedings
The complaint brings 11 claims, including disability discrimination, medical leave violations, and intentional infliction of emotional distress. Although Fulton seeks back pay and damages, the filing does not specify a total dollar amount. According to the complaint, Fulton filed a discrimination charge with the U.S. Equal Employment Opportunity Commission on June 2 and received a notice of right to sue on Sept. 23. She also filed a separate unfair labor practice charge with the National Labor Relations Board, which remained pending when the lawsuit was filed.
