Eclipse CEO resigns amid sexual misconduct allegations

Ethereum’s Layer 2 scaling solution Eclipse is in turbulent waters as its founder and CEO Neel Somani steps down from his position amid allegations of sexual misconduct.

The allegations surfaced in anonymous testimonials posted on social media platforms. These allegations have sent shockwaves through the Ethereum (ETH) community and raised concerns about the culture within blockchain technology and the treatment of women in the industry. On May 9, 2024, Somani revealed that he is temporarily reducing his role as the public face of the company. He wrote, “Last week, serious allegations were made against me on Twitter. These claims are false.” Somani added: “Serious allegations of sexual misconduct require a serious and considered response.” He stressed that he had “never sexually assaulted or harassed any woman and would work to clear my name and defend myself.” Somani concluded that Eclipse’s senior leadership did this “We are well equipped to take on this responsibility and this will allow these conversations to unfold and the truth about these allegations to emerge.”

Company response and transition

In response to the allegations, Eclipse issued a statement expressing deep concern and committing to addressing the issue with the utmost seriousness. The company announced an immediate internal investigation to determine the veracity of the allegations and promised full cooperation with any external investigations. The platform emphasized its commitment to promoting a safe and inclusive environment for all employees and community members, noting: “The team takes the allegations against our CEO Neil Somani seriously and believes in the importance of telling the truth.”

Eclipse remains committed to maintaining the highest personal and professional standards, including gender equality and fair treatment. The team takes the allegations against our CEO Neel Somani seriously and believes in the importance of the truth.

— Eclipse 🌑 (@EclipseFND) May 9, 2024

The leadership transition has begun, with Somani voluntarily stepping down from his role pending the outcome of the investigation. Eclipse’s Board of Directors has assumed interim management responsibilities to ensure continuity of operations during this challenging time. The board released a statement reiterating its support for the investigation process and its commitment to uphold the company’s values ​​of integrity and accountability. Eclipse wrote: “Eclipse remains committed to maintaining the highest personal and professional standards, including gender equality and fair treatment.”

Industry reflection and progress

The allegations against Eclipse’s CEO have led to broader reflections within the company Blockchain Industry on issues of gender equality, diversity and inclusion. While blockchain technology is often praised for its potential to disrupt traditional power structures, cases of misconduct highlight ongoing systemic challenges that require concerted efforts.

Looking forward, industry stakeholders emphasize the importance of implementing robust mechanisms to report and address misconduct and promote diversity at all levels of organizations. This includes not only gender diversity, but also representation of marginalized communities to ensure a more inclusive and equitable ecosystem. Eclipse proposed raising a $50 million Series A round led by venture capital firms Hack VC and Placeholder, bringing its total capital raised to $65 million as of March 11, 2024. In September 2023, the company launched its corporate mainnet ether Layer 2.