Quick Take:

• Neel Somani, founder of Ethereum scaling chain Eclipse, faces sexual misconduct allegations.
• Somani denies allegations but steps back from public role.
• Eclipse reaffirms commitment to professionalism amidst controversy.
• The layer-2 blockchain project recently raised $50 million in funding.

In a recent turn of events, Neel Somani, the founder and CEO of Ethereum scaling company Eclipse, finds himself embroiled in a controversy as sexual misconduct allegations surface against him. Somani, who has been at the forefront of the layer-2 blockchain scaling project, announced his decision to step back from his role as a “public face” for Eclipse in response to these accusations.

Addressing the allegations circulating on social media platform X (formerly Twitter), Somani stated, “Serious allegations have been made against me on Twitter in the last week. These allegations are false, but serious allegations about sexual misconduct warrant a serious and thoughtful response.” Despite his denial, Somani emphasized the need for a thorough investigation into the matter.

“I’ll be temporarily reducing my role as a public face for Eclipse,” Somani declared, indicating his intention to allow senior leaders within the company to manage responsibilities while the allegations are addressed. However, Somani refrained from immediate comment when approached for further clarification.

Eclipse, in a statement posted on its official X account, reaffirmed its commitment to upholding high personal and professional standards, including gender equality and fair treatment. The company assured stakeholders that it takes the allegations against Somani seriously and believes in the importance of uncovering the truth.

The controversy comes at a pivotal time for Eclipse, which recently disclosed a significant milestone in its funding journey. In March, the firm announced a successful Series A funding round, securing $50 million in investment. This round, co-led by Placeholder and Hack VC, propelled Eclipse’s total fundraising efforts to $65 million, marking a substantial financial backing for the layer-2 blockchain scaling project.

As the allegations against Somani continue to unfold, Eclipse faces the task of navigating through this challenging period while maintaining its focus on advancing blockchain technology and contributing to the Ethereum ecosystem.

Overall, the situation underscores the importance of transparency and accountability within the cryptocurrency and blockchain space, reminding industry participants of the need to address misconduct allegations seriously and responsibly.