Ethereum Foundation denies $12.8m sale tied to old ICO wallets

Recent portfolio shuffles and asset dumps pointed to its old habits, but the foundation has officially denied involvement in the sales.

In a recent X post, Ethereum Foundation co-Executive Director Hsiao-Wei Wang debunked claims that the foundation was behind a recent $12.8 million ETH (ETH) sell-off.

“It was not the Ethereum Foundation’s operation,” she wrote. Wang’s disclaimer came after on-chain trackers spotlighted movements on a wallet associated with the foundation, which had sold a total of 2,975 ETH in a two-part transaction. 

The wallet was reported to have originally received ETH in 2017 from another Foundation-associated address, pointing to a likely connection with ICO-era allocations.

Clarifying the mix-up, the director noted that the wallet in question is no longer operated by the Foundation. She explained that while around 9% of the total ETH supply was allocated to the foundation back during the 2014 ICO, it has significantly trimmed its holdings over time. Now, less than 0.3 % of the ETH supply is actually held across Foundation‑controlled addresses.

This means that several addresses from that period remain in circulation, but do not represent Foundation funds. The team’s history of ETH dumps made the latest sell-off all the more notable, as it fit into its broader pattern of sales that have often sparked community concerns.

However, the new disclosure about its reduced share of the total ETH supply suggests these sales are part of a deliberate strategy to reduce its financial footprint and influence over the network.

ETH Foundation scales back as corporate holders rise

Over the past months, the foundation has strategically reduced its holdings through planned transactions, including a July sale of about 10,000 ETH to publicly traded company SharpLink Gaming, which is now the second-largest corporate ETH holder. The sale was conducted directly on-chain, avoiding market disruption.

This move came amid the rapid rise of corporate ETH treasuries, suggesting the Foundation is gradually offloading supply into the hands of public companies. In just a few months, this new class of holders has amassed over $14 billion worth of ETH, concentrating a growing share of the network’s supply in corporate hands.

Ethereum co-founder Vitalik Buterin recently cautioned against the growing trend, describing it as a double-edged sword. He noted that while these public companies can broaden Ethereum’s reach by giving mainstream investors indirect exposure, the benefits could quickly turn into systemic risks if these holdings become overleveraged.

Buterin described a scenario in which companies borrow aggressively against their ETH reserves, leaving them vulnerable to forced liquidations during a downturn, a chain reaction that could amplify market volatility and damage trust in Ethereum’s stability.

Meanwhile, Ethereum has been on a tear over the past days. According to crypto.news data, ETH is currently trading at $4,776, up approximately 30% of the week and just 2.35% shy of its all-time high.