Ethereum co-founder Jeffrey Wilcke transfers $262M in ETH to Kraken, causing community speculation

Ethereum (ETH) co-founder Jeffrey Wilcke transferred approximately $262 million worth of ETH to a wallet labeled as a Kraken deposit address on May 20, according to on-chain data. 

The transfer of 105,736 ETH emptied nearly all of Wilcke’s holdings, leaving just 268.73 ETH in his wallet. Subsequent withdrawals from the exchange suggest that this could be Wilcke dividing his holdings into different wallets.

According to Lookonchain, a few minutes after his deposit, eight different addresses withdrew the equivalent of $262 million in ETH from Kraken. This is the first time Wilcke has made a substantial transfer to an exchange since moving $147 million in four transactions last year.

Despite the movement’s scale, Ethereum’s price remained relatively stable. As of press time, ETH was trading at $2,493, down 0.17% over the past 24 hours, largely in line with broader market performance.

Notably, Ethereum has shown strong performance in the past 30 days, climbing 72% from the lows recorded earlier this year to a high of $2,737.17 on May 13.

Past EF transfers

Ethereum transfers conducted by major figures associated with the protocol and the Ethereum Foundation (EF) often lead to scrutiny within the community. 

On Aug. 23, 2024, the EF transferred $94 million worth of ETH to Kraken. The move raised concerns among community members, prompting explanations from EF contributor Josh Spark and Ethereum co-founder Vitalik Buterin, who said the transfer aimed to support organizations contributing to Ethereum’s development.

Subsequent Ethereum Foundation transactions continued into early 2025, with the foundation selling 300 ETH in January alone, totaling roughly $981,200.

The community questioned whether the foundation should stake its holdings rather than liquidate them. In response, Buterin stated that legal risks and the possibility of contentious protocol upgrades had dissuaded the EF from staking at scale. 

However, the foundation began allocating funds to decentralized finance platforms in February to generate yield. 

The EF deposited 30,800 ETH, worth about $82 million, into Aave’s lending markets. Spark received an additional deposit of 10,000 ETH, and Compound received 4,200 ETH. Analyst Tom Wan estimated a 1.5% annual yield potential from these movements, equating to a gain of roughly $1.5 million based on current prices.

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