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Lido Co-Founder Teases ‘Second Foundation’ for Ethereum Amid Community Backlash

Konstantin Lomashuk, the founder of the Lido staking protocol, has teased his intention to build a «Second Foundation» to advance Ethereum’s ecosystem.
Over the past several days, Ethereum co-founder Vitalik Buterin has outlined plans for a major restructuring of the Ethereum Foundation (EF), the nonprofit organization responsible for supporting Ethereum’s development. In a series of posts on X (formerly Twitter), Buterin shared details of the reorganization, which he said would streamline decision-making processes and address inefficiencies.
The announcement has sparked criticism, with some arguing that Buterin’s central role in the restructuring process undermines Ethereum’s ethos of decentralization.
The Ethereum Foundation, however, has long been scrutinized for its own centralizing influence within the Ethereum ecosystem. Over the past year, the organization has faced mounting pressure to define a clearer vision for Ethereum’s future as competing networks like Solana make strides.
Read more: Ethereum’s Vitalik Buterin Goes on Offense Amid Major Leadership Shake-up
The EF has also been criticized for its «rollup-centric» roadmap, which prioritizes «layer-2» networks that enable faster and cheaper transactions atop Ethereum. While these layer-2 rollups have boosted Ethereum’s throughput, they’ve also drawn concerns about potential trade-offs, such as diminished security guarantees and a notable dent in Ethereum’s base fee revenues.
Lomashuk, who has previously voiced concerns about the Ethereum Foundation’s direction, hinted at the concept of a «Second Foundation» in a December post on X. «The idea of a ‘Second Foundation’ is more about creating competition between different groups, giving the community a choice,» Lomashuk wrote. «EF is super deep, and it’s almost impossible for outsiders to contribute without building long-term research muscle. Without competition, we risk losing the right path.»
On Wednesday, Lomashuk published another X post sharing a newly established account for «Second Foundation.»
Representatives for Lomashuk did not immediately respond to a request for comment, but Martin Köppelmann, a prominent Ethereum developer close to Lomashuk, told CoinDesk that the «Second Foundation» proposal is authentic.
«He is certainly seriously thinking about it,» Köppelmann said. «The goal of course is to make it open to anyone who subscribes to the same ideas — roughly that Ethereum needs to scale better and faster.»
Lido, the protocol founded by Lomashuk, allows users to pool their ETH to participate in Ethereum’s staking mechanism, which lets users «stake» (lock up) crypto with the network in exchange for interest. Stake correlates to power in Ethereum’s governance system, making Lido a pivotal entity in the ecosystem: Currently, Lido accounts for around 28% of Ethereum’s staked ETH, making it the network’s single-largest validator.
In addition to Lido, Lomashuk co-founded P2P Validator, a company providing infrastructure for Ethereum validators, and cyber.Fund, a venture capital firm he operates alongside another Lido co-founder. His growing influence raises questions about the potential dynamics between a «Second Foundation» and the existing Ethereum Foundation as the network continues to evolve.
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Trump’s Memecoin Dinner Questioned by Top Democrat on House Judiciary Committee

A senior Democrat in the House of Representatives, Jamie Raskin, joined his name to lawmakers seeking answers about President Donald Trump’s recent dinner for top investors in his memecoin, sending questions directly to Trump.
Raskin, the ranking Democrat on the House Judiciary Committee, has been a vocal critic of the president and becomes the latest of many from his party to probe details about the event, which they’ve called out as evidence of White House corruption. Because Raskin is in the minority party, his demands are unlikely to lead to further congressional action unless they regain the House or Senate in next year’s elections.
«I write today to demand that you release the names of all the attendees at this dinner and provide information about the source of the money they each used to buy $TRUMP coins, so that we can prevent illegal foreign government emoluments from being pocketed without congressional consent,» Raskin wrote this week to the president, joining many counterparts in the Senate in seeking the information, including Senators Elizabeth Warren, Chris Murphy and Richard Blumenthal.
«We deserve to know who is paying for access to our president, and what steps you took to ensure that the funds you receive are legitimate and legal, rather than the proceeds from foreign states or monarchs or illegal activities,» Rasking said, specifically highlighting Tron founder Justin Sun, a guest who was a major early investor in Trump’s family crypto operations.
Read More: Democrats Threaten Lawsuits, Join Protests Ahead of Trump Memecoin Dinner
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FTX Repayments May Have Positive Market Impact: Coinbase

The FTX Recovery Trust will begin distributing over $5 billion in cash and stablecoins to creditors starting on Friday, with funds expected to land in accounts within the next three business days via BitGo and Kraken.
And there’s a chance this wave of repayments will help lift the crypto market, analysts at Coinbase wrote in a report on Friday.
It’s the second major round of repayments following the exchange’s collapse. The first, which began on Feb. 18, returned roughly $7 billion to creditors with claims under $50,000. That did little to lift broader crypto markets at the time, which remained under pressure from macro headwinds.
This latest wave of distributions comes as investor sentiment has shifted, the analysts said. Payments will arrive in stablecoins, offering recipients immediate on-chain liquidity, instead of cash and crypto. That could influence whether the funds are reinvested.
There’s also a broader sense of optimism in crypto markets, thanks in part to a rally in major assets and increased political clarity around regulation. Institutional players, in particular, may feel more comfortable acting on incoming funds, especially as Congress moves closer to passing legislation that would define the roles of U.S. regulators overseeing digital assets.
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Judge Declines to Order DOJ to Review Records in Roman Storm Case

The federal judge overseeing Roman Storm’s prosecution declined to order the Department of Justice to review its records for any materials it might have missed that would help the Tornado Cash developer at the end of a 30-minute hearing Friday morning, though she told the government it should not have any disclosure issues.
Judge Katherine Polk Failla also ruled that there were no Brady violation concerns with the Department of Justice’s conversations with the Financial Crimes Enforcement Network (FinCEN) about whether mixers needed to register as money transmitters — the conversation that prosecutors pursuing Samourai Wallet developers had with FinCEN officials, but not the prosecutors on Storm’s case — one of the DOJ representatives said in the phone conference on Friday.
If the judge had found that prosecutors had withheld information, it could affect the case moving forward.
«I’m not going to require a further review based on the representations made that there’s no additional material of this type, and based on my views that I don’t believe the material was exculpatory,» she said.
«There’s a difference between ‘this is something I’d like to know’ and ‘this is a Brady violation,'» the judge said, referring to a Supreme Court precedent that requires prosecutors to share any and all information that might help a defendant with the defendant’s team.
Storm’s defense attorneys argued during the hearing that they needed to know when the prosecutors in their case learned about the FinCEN conversation.
«They do plan to say they’re charging a conspiracy to operate an unlicensed money transmitter,» said defense attorney Brian Klein. «My question is who are they supposed to be licensed with? … this is all in the same issue. They’ve only dropped one subpart … but they’re still going to say they’re charging an unlicensed money business.»
Thane Rehn, a prosecutor who worked on the DOJ case against Sam Bankman-Fried, said that his team wouldn’t argue that Tornado Cash needed to secure a license.
«The word ‘license’ doesn’t apply here and the jury won’t be instructed on licensing issues … what we intend to prove at trial is the defendant knew they were transmitting funds derived from criminals,» he said.
The judge did at multiple points ask the prosecutors if they planned to change any other theories or charges in the weeks leading up to the trial, saying doing so might be unfair to the defense. The trial is supposed to kick off in less than two months.
Read more: DOJ Will Still Pursue Roman Storm Case Despite Blanche Memo, Prosecutors Say
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