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Cryptocurrency markets got shaken again in recent days with the news of the Ethereum Foundation from the American press in the wake of the declines it has experienced.

According to the news of Coindesk, which is one of the largest crypto media organizations of American origin, the Ethereum Foundation has been investigated by an unknown state authority. The way the news was served creates the perception that the Ethereum Foundation is under investigation and that this investigation is new.

However, when the details and source of the relevant news are examined, it turned out that the inference was made from the Ethereum Foundation’s website updates in the Github repository. It was revealed that the “warrant canary” section on the Foundation’s websites was removed on February 26th from the website and it was carried out with the statement “we voluntarily received a request with the condition of remaining secret from a government authority.”

What is “warrant canary”?

The term “warrant canary” and the part that was removed from the website refer to the method of informing the public of any situation “without notifying” when companies are required by the government to keep any information secret. The canary in the term, indicates the method used by miners to understand if there is any leakage in the mines. If the canary continues to sing while flying inside the mine, it shows that there is no leakage; however, if it stops singing, it indicates a problem. The goal here is not to detect a leakage, but to understand that as long as the canary continues to sing, there is no leakage.

Just like in this example, the purpose of the section added to the Ethereum Foundation’s websites was to indicate that they have not received any court orders or requests for secrecy so far. The move made by the team might not imply the opening of an investigation against them, but it might indicate that a request was made by the government. Therefore, confidently stating that an investigation has been opened against the foundation may not reflect the truth and may negatively affect investors.

Fortune also made allegations regarding the investigation

Based on information from a source, Fortune claimed that the SEC requested documents related to the Ethereum Foundation from companies in America. It also claimed that the mysterious state authority mentioned in the investigation/request is the SEC.

How will the investigation affect Ethereum ETFs?

The first victims of the investigation or a negative scenario will be the eagerly anticipated spot Ethereum ETFs. During a period in which the SEC is in the process of deciding for Ethereum ETFs, such an investigation could postpone expectations. This, in turn, could affect the ethereum price.

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