Foundation, once one of the most prominent Ethereum-based NFT marketplaces from the 2021 boom, is officially shutting down after a planned acquisition fell through.

Founder and CEO Kayvon Tehranian announced the closure on Wednesday, confirming that the deal intended to keep the platform running under new ownership is no longer viable.

Failed Sale Forces Shutdown

While Tehranian did not explicitly name the buyer, the failed deal is tied to digital art platform Blackdove, which had previously planned to acquire Foundation.

The goal of the acquisition was to ensure continuity for the marketplace, but with the agreement collapsing, Foundation said it is no longer in a position to continue operations.

The platform will briefly come back online to allow users to delist their NFTs before shutting down permanently.

A Major Player From the NFT Boom

Launched in early 2021, Foundation quickly became a key platform during the NFT boom, facilitating high-value digital art sales at a time when the market was rapidly expanding.

According to Blackdove, the platform generated over $230 million in primary sales and hosted works from well-known artists such as Jen Stark, James Jean, and Reuben Wu.

It also gained attention for hosting Edward Snowden’s NFT “Stay Free,” which sold for around 2,200 Ether, valued at roughly $5 million at the time.

Declining NFT Market Takes Its Toll

Foundation’s closure reflects the broader downturn in the NFT market since its peak in 2022.

As trading volumes and liquidity declined, many independent platforms have struggled to sustain operations, leading to consolidation across the sector.

Wave of NFT Platform Shutdowns

Foundation is not alone. Several NFT marketplaces have either shut down or pivoted away from the space in recent months.

Platforms such as Nifty Gateway, Rodeo, and MakersPlace have all ceased operations or shifted focus, while X2Y2 and Bybit have scaled back or exited their NFT offerings.

Even infrastructure projects like Mint Blockchain have announced closures, signaling a broader contraction in the NFT ecosystem.

Market Consolidation Continues

Despite the downturn, OpenSea remains the dominant NFT marketplace, accounting for more than 70% of trading activity.

Competition still exists from platforms like Blur, but overall market activity has fallen back to levels seen before the 2021 surge.

Outlook for NFTs Remains Uncertain

While the current environment remains challenging, some industry leaders believe NFTs could see a resurgence in the future.

For now, however, Foundation’s shutdown highlights the reality of a maturing market where only a handful of platforms are able to survive reduced demand and tighter liquidity conditions.

Circle, the issuer of the USDC stablecoin, is facing a class action lawsuit over its alleged role in the $280 million exploit of Drift Protocol earlier this month.

The lawsuit, filed in a Massachusetts district court, claims Circle failed to act in time to freeze stolen funds, allowing attackers to move hundreds of millions across blockchains.

Allegations of Negligence and Inaction

The case was brought by Drift investor Joshua McCollum on behalf of more than 100 affected users.

According to the complaint, attackers were able to transfer roughly $230 million in USDC from Solana to Ethereum using Circle’s Cross-Chain Transfer Protocol over several hours without intervention.

The lawsuit accuses Circle of negligence and aiding unlawful conversion, arguing that timely action could have significantly reduced the losses.

“Circle permitted this criminal use of its technology,” the plaintiffs claim, stating that earlier intervention might have prevented much of the damage.

Questions Over Control and Responsibility

The case highlights a broader issue in the crypto industry: the extent to which companies should intervene when they have the technical ability to freeze funds.

While some firms can block or freeze assets, they often point to regulatory constraints or the absence of legal orders as reasons for not acting immediately.

Plaintiffs argue that Circle had the capability to intervene, noting that the company froze multiple USDC wallets in a separate legal case shortly before the Drift exploit.

Funds Laundered Through Ethereum and Privacy Tools

Blockchain analytics firm Elliptic suggested that the attack may be linked to North Korean state-backed hackers.

The stolen funds were reportedly converted into Ether and routed through the Tornado Cash privacy protocol in an attempt to obscure their origin.

The attackers carried out more than 100 transactions during US business hours, using Circle’s bridging infrastructure to move funds quickly across networks.

A “No-Win” Situation for Circle

Not everyone agrees that Circle should have acted differently.

Lorenzo Valente, director of research for digital assets at ARK Invest, argued that freezing funds without a clear legal mandate could create long-term risks.

He noted that such decisions could set precedents where companies are forced to make subjective calls about which transactions to block.

“Every future freeze becomes a judgment call,” Valente said, raising concerns about consistency and potential overreach.

Legal Outcome Could Set Industry Precedent

The lawsuit could have significant implications for how crypto firms handle security incidents and user funds.

As regulators and courts continue to define the responsibilities of centralized players in decentralized systems, the outcome may shape future expectations around intervention, accountability, and user protection.

For now, the case underscores the growing tension between decentralization principles and the realities of managing large-scale financial platforms.

Josh Stark, a prominent researcher and project manager at the Ethereum Foundation, has announced his departure after five years with the organization.

Stark shared the news on Thursday, saying he plans to take time off and has no immediate plans for his next move.

Stark Steps Away After Five Years

In a post, Stark reflected on Ethereum’s journey, highlighting how the ecosystem has consistently overcome skepticism and technical challenges.

He pointed to milestones such as the launch of Ethereum, the rise of decentralized finance, and the successful transition to Proof of Stake as achievements that many once thought impossible.

Stark did not provide a specific reason for his departure, stating only that he intends to focus on personal time with family and friends.

High-Profile Exit Amid Ongoing Changes

Stark’s exit marks one of the most significant departures from the Ethereum Foundation since its leadership shakeup in early 2025.

He was one of just four individuals listed under “Management” in the Foundation’s organizational structure, making his role particularly influential within the ecosystem.

His departure follows another recent exit, with contributor Trent Van Epps also stepping down from the organization.

Ethereum Foundation’s 2025 Restructuring

The Ethereum Foundation underwent major changes in 2025 after co-founder Vitalik Buterin outlined a new direction for the organization.

The restructuring aimed to bring in fresh talent, increase decentralization, and focus on improving network performance, including faster transaction speeds and scalability.

At the time, Buterin emphasized that the Foundation would not engage in political lobbying or represent specific vested interests, reinforcing its neutral role within the ecosystem.

Leadership Changes Continue

As part of the 2025 overhaul, the Foundation appointed Hsiao-Wei Wang and Tomasz Stańczak as co-directors.

However, Stańczak stepped down from his role in February 2026, leaving Wang as a continuing member of the management board.

Stark’s departure adds to the ongoing leadership transitions, raising questions about how the Foundation’s structure and priorities may continue to evolve.

Ethereum Ecosystem Moves Forward

Despite the changes, the Ethereum ecosystem continues to develop, with ongoing work around scalability, decentralized applications, and financial infrastructure.

Stark’s exit reflects a broader period of transition within the Foundation, as it adapts to new challenges and opportunities in the rapidly evolving crypto landscape.