A crypto intelligence report suggesting the Ethereum Foundation deposited 30,098 Ether (ETH), worth approximately $56 million, into the decentralized finance (DeFi) protocol Sky sparked widespread speculation before being refuted by Ethereum community members.
The claim originated from blockchain analytics platform Arkham, which flagged the wallet in question as potentially linked to the foundation. However, Ethereum developers and blockchain analysts quickly dismissed the report, stating that the wallet belonged to an early Ethereum investor rather than the foundation.
The controversy began on March 10, when a wallet address deposited 30,098 ETH into Sky, formerly known as MakerDAO. The transaction led to speculation that the Ethereum Foundation had moved assets into the lending protocol rather than selling ETH to fund its operations. Crypto intelligence firm Arkham labeled the address as “Ethereum Foundation?,” prompting further discussions.
Ethereum Improvement Proposal (EIP-1559) co-author Eric Conner called the speculation “completely fake,” directly refuting a report from Wu Blockchain, a widely followed source in the crypto space. Anthony Sassano, host of The Daily Gwei, echoed Conner’s statement, reinforcing that the address was unrelated to the Ethereum Foundation.
Wu Blockchain Issues Correction
Following the wave of speculation, Wu Blockchain clarified on social media, acknowledging that its initial report was based on Arkham’s flagged wallet but that on-chain data suggested otherwise.
The correction specified that the wallet’s transaction history and initial ETH funding traced back to a user known as jonny.eth, an early Ethereum investor. While the wallet did receive a past transfer from the Ethereum Foundation, its ongoing activity did not align with foundation-controlled assets.
The deposit into Sky was not a routine transaction but a strategic financial move to prevent liquidation. The wallet holder transferred the ETH to Sky as ETH prices fell from $2,138 to $1,813—a 15% drop quickly. The wallet successfully lowered its liquidation price to $1,127.14 by making this deposit, a critical safeguard against potential forced liquidation in a volatile market.
Blockchain analytics firm Lookonchain provided further insight, reporting that the wallet in question currently holds 100,394 ETH (approximately $182 million) within Maker and has an outstanding debt position of 78,035,224 DAI. The data suggested that the wallet owner was significantly interested in maintaining a stable collateralization ratio amid ETH’s price swings.
Ethereum Foundation’s History With DeFi
Despite the debunked claims about the Sky deposit, the Ethereum Foundation has actively engaged in DeFi strategies in the past. In January, community members criticized the foundation for selling ETH to fund operations, suggesting instead that it could borrow stablecoins against its ETH holdings.
In response, the foundation deployed 45,000 ETH—then valued at approximately $120 million—across DeFi protocols Aave, Spark, and Compound on February 13. The move aligned with community recommendations, reinforcing Ethereum’s commitment to utilizing decentralized finance mechanisms rather than liquidating holdings outright.
Aave founder and CEO Stani Kulechov praised the initiative, stating, “DeFi will win.” The Ethereum Foundation also hinted at further engagement with decentralized finance, stating that its involvement in the space was “more to come.”
The Ethereum Foundation has not publicly addressed the speculation, but community members and independent blockchain researchers have largely dismissed any direct link between the wallet and the foundation.
