Ethereum Foundation Faces Criticism Over $43M ETH Sale on Centralized Exchanges
Ethereum Foundation (EF) announced it will convert 10,000 ETH — worth around $43.6 million at current prices — over the coming weeks using centralized exchanges (CEXs). The foundation framed the move as a routine step to fund research, grants, and donations, but the decision quickly stirred criticism among DeFi advocates.
According to the statement posted on X, EF will split the conversion into multiple smaller orders instead of one large transaction to minimize market disruption. The organization pointed to its treasury-policy blog, published in June, which outlines its framework for periodically converting ETH to cover fiat-denominated costs linked to ecosystem R&D and grants.
The timing of the sale also raised eyebrows, as The Block previously reported EF has paused or slowed several grant programs in an effort to reduce its burn rate.
Community Pushback: “Why Not DeFi?”
Reaction from builders and traders was immediate. Martin Koppelmann, co-founder of Gnosis, questioned why EF did not use decentralized exchanges (DEXs) for the sale. Others suggested leveraging DeFi-native lending platforms like Aave to borrow against ETH, or arranging over-the-counter (OTC) deals with corporate treasuries. Some even called for onchain dollar-cost-averaging, which would allow the community to bid transparently.
Critics like Josiah Gulden, a Compound-linked designer and former Meta engineer, argued that selling ETH outright instead of borrowing against it “doesn’t exactly instill confidence in EF’s outlook on ETH as a treasury asset.”
The Case for Centralized Exchanges
Supporters of EF’s approach noted that CEX liquidity and settlement tools can reduce operational risks and minimize slippage during large transfers. Splitting the 10,000 ETH into smaller trades also helps limit market impact compared to a single block sale.
The foundation, however, did not reveal which exchanges it will use, the exact schedule, or targeted execution prices — leaving the crypto community watching closely for the next move.
