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News

At Least 10 US-based Eigen Labs Employees Benefit From Airdrops: CoinDesk Report

August 21, 2024 - Around 2 mins mins to read

Key Points:

  • US-based employees of Eigen Labs received substantial airdrops from crypto projects Renzo and Ether.Fi, despite these projects’ stated efforts to exclude U.S. residents due to legal concerns.
  • Several Eigen Labs employees living in major U.S. cities openly claimed these tokens.
CoinDesk found out in an investigation that wallets associated with at least 10 US-based Eigen Labs employees—the company behind the Ethereum-based project EigenLayer—received large airdrops from crypto projects Renzo and Ether.Fi.
At Least 10 US-based Eigen Labs Employees Benefit From Airdrops: CoinDesk Report

Read more: Eigen Labs Acquires Rio Network to Enhance EigenLayer Ecosystem

Eigen Labs Employees Linked to Major Airdrops from Renzo, Ether.Fi

While the projects indicated that they had to exclude U.S. residents from airdrops due to legal constraints, these Eigen Labs employees—engineers, directors, executives, and chief lawyers alike—were beneficiaries of hundreds of thousands of dollars in tokens.

Of the most promising projects of Ethereum, EigenLayer uses U.S. developers through a domestic entity. However, the EIGEN token is issued through another legal entity domiciled in an offshore jurisdiction that has less stringent U.S. securities and tax laws.

Eigen Foundation, which oversees the issuance of the token, is setting up operations in the Cayman Islands, a well-known haven for cryptocurrency firms.

Selective Compliance Raises Questions in EIGEN Token Distribution

While Renzo and Ether.Fi announced that their airdrops would not be available to U.S. residents, a number of Eigen Labs employees—many of whom reside in cities such as Austin, San Francisco, and Seattle—claimed tokens from these projects with no problem. The activity signals a pattern of selective compliance in the industry, insiders say.

CoinDesk previously reported that Eigen Labs was said to have sought airdrop tokens from projects within its ecosystem as a way of thanking them for the successful launches of some protocols on the platform. While Eigen Labs admitted to such allocations, the company clarified that there was no special treatment accorded to its workers.

The event brings into question the legal and ethical standards within the industry, especially at a time when regulators in the United States are putting pressure on the cryptocurrency space.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

EIGEN

Eigen Labs

Eigen Labs Employees

EigenLayer

ether.fi

Ethereum

renzo

Avatar of Harold

Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

At Least 10 US-based Eigen Labs Employees Benefit From Airdrops: CoinDesk Report

Key Points:

  • US-based employees of Eigen Labs received substantial airdrops from crypto projects Renzo and Ether.Fi, despite these projects’ stated efforts to exclude U.S. residents due to legal concerns.
  • Several Eigen Labs employees living in major U.S. cities openly claimed these tokens.
CoinDesk found out in an investigation that wallets associated with at least 10 US-based Eigen Labs employees—the company behind the Ethereum-based project EigenLayer—received large airdrops from crypto projects Renzo and Ether.Fi.
At Least 10 US-based Eigen Labs Employees Benefit From Airdrops: CoinDesk Report

Read more: Eigen Labs Acquires Rio Network to Enhance EigenLayer Ecosystem

Eigen Labs Employees Linked to Major Airdrops from Renzo, Ether.Fi

While the projects indicated that they had to exclude U.S. residents from airdrops due to legal constraints, these Eigen Labs employees—engineers, directors, executives, and chief lawyers alike—were beneficiaries of hundreds of thousands of dollars in tokens.

Of the most promising projects of Ethereum, EigenLayer uses U.S. developers through a domestic entity. However, the EIGEN token is issued through another legal entity domiciled in an offshore jurisdiction that has less stringent U.S. securities and tax laws.

Eigen Foundation, which oversees the issuance of the token, is setting up operations in the Cayman Islands, a well-known haven for cryptocurrency firms.

Selective Compliance Raises Questions in EIGEN Token Distribution

While Renzo and Ether.Fi announced that their airdrops would not be available to U.S. residents, a number of Eigen Labs employees—many of whom reside in cities such as Austin, San Francisco, and Seattle—claimed tokens from these projects with no problem. The activity signals a pattern of selective compliance in the industry, insiders say.

CoinDesk previously reported that Eigen Labs was said to have sought airdrop tokens from projects within its ecosystem as a way of thanking them for the successful launches of some protocols on the platform. While Eigen Labs admitted to such allocations, the company clarified that there was no special treatment accorded to its workers.

The event brings into question the legal and ethical standards within the industry, especially at a time when regulators in the United States are putting pressure on the cryptocurrency space.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.