Peter Thiel's Founders Fund Withdraws Investment from ETHzilla Amid Strategic Shift to Jet Engine Tokens

In a significant move within the cryptocurrency sector, the investment entity known as Founders Fund, spearheaded by Peter Thiel, has fully withdrawn its investment from ETHzilla Corp. This departure comes after the firm relinquished its 7.5% share, a position it made public back in August, as revealed through documentation filed with the U.S. Securities and Exchange Commission. The decision marks a pivotal moment for both the venture capital firm and ETHzilla, underscoring the unpredictable nature of the crypto market.

ETHzilla Corp. found itself in turbulent waters following a severe downturn in the cryptocurrency market, compounded by a flash crash in October 2025. These adverse conditions necessitated a strategic pivot for the company, including the liquidation of substantial assets. Notably, the company offloaded over $100 million worth of ether, aiming to stabilize its financial standing through strategic buybacks and the settlement of outstanding debts. This drastic move highlights the challenges faced by crypto enterprises amidst market volatility.

The shift in strategy towards the tokenization of jet engines represents a novel direction for ETHzilla Corp., diverging significantly from its previous endeavors. This transition reflects a broader trend within the crypto industry, where companies are increasingly exploring innovative applications of blockchain technology beyond traditional digital currencies. As ETHzilla embarks on this new venture, it leaves behind a noteworthy chapter marked by its association with Peter Thiel's Founders Fund and the dramatic events that led to their divestiture.