Lawsuit Naming Buterin Links Firing to Suicide Pledge Mandate

A US federal lawsuit against Vitalik Buterin and the Ethereum Foundation alleges Kayleen Fulton was dismissed 13 days after she told managers she had ovarian cancer.

The suit links the firing to a staff revolt against a board mandate that includes a suicide pledge. The defendants include the entity that funds Ethereum's core developers, which the suit says controls over 160,000 ETH.

What Led to Fulton's Dismissal, According to the Suit?

Fulton oversaw the Foundation's Protocol Support team and chaired the All Core Developers calls, where protocol changes are discussed.

In February, the board circulated a vision document called the Mandate. A passage within it contained the pledge that an employee must “take his or her own life with a sword” over any breach.

A total of 79 staff members voted against the requirement, but the board retained it. Following this, Co-Executive Director Bastian Aue requested written compliance from employees, warning that failure would be considered a resignation.

Fulton disclosed her ovarian cancer diagnosis on March 24. A day later, she and Trent Van Epps submitted a letter with 53 signatures from staff who refused to accept the mandate's terms.

According to the lawsuit, Aue dismissed both Fulton and Van Epps on April 6, within 30 minutes of each other, without an explanation. The filing references a recording of Buterin's response to the firings.

“if you reward making a stink with outcomes, then everyone will know that essentially making that kind of a show both internally and externally is the way to cause outcomes inside of the EF,” according to the complaint.

The Foundation's Defense and the Potential Impact on ETH

The filing states Aue told employees the suicide pledge was “not meant to be taken literally.” By May, lawyers for the Foundation's Singapore affiliate had denied any retaliation and argued that Fulton's severance agreement mandates arbitration in Singapore.

Fulton asserts she voided the severance agreement and returned the money. She is pursuing back pay on her $195,000 salary as well as punitive damages. The case has yet to be heard in court.

Developments at the Foundation have previously affected Ether's price. ETH increased by 5% in March after the board released the finalized Mandate. The token dropped nearly 7% in June when the Foundation laid off 20% of its workforce.

The June job cuts had been widely known prior to the suit. This legal action brings explicit accusations against Buterin and uses his recorded comments.

The complaint also claims that Fulton's department was broken up and that the majority of the 53 people who signed the March letter are no longer with the organization.

The immediate proceeding will determine if a judge in Colorado allows the case to proceed in a US jurisdiction.