Safe Governance Complaint Raises Risks as Wallet Share Falls

| blocktempo.com
Safe governance is under scrutiny after early investor Greenfield Capital filed a complaint with Switzerland’s Federal Supervisory Authority for Foundations. Greenfield is seeking a review of the Safe Ecosystem Foundation and possible board restructuring after more than a year of discussions. The investor says Safe’s current governance lacks independence and relevant financial, risk-management and corporate-governance expertise. It questioned links involving board member Stefan George and Gnosis, which has competing wallet products, as well as Richard Meissner’s association with the company developing and operating Safe products. Greenfield wants George removed and independent directors appointed. It also alleged that George and Gnosis co-founder Martin Köppelmann pressured Safe founders over SAFE token allocations after the February 2025 Bybit hack. These allegations have not been tested in court. Safe’s operating indicators have also weakened. Second-quarter revenue was $1.98 million, implying an annualised run rate of about $8 million, below its $20 million 2026 target. Assets managed through Safe wallets fell from about $6.6 billion in early 2024, or $66 billion under the later reporting metric, to roughly $3 billion, or $30 billion, in the latest figures. This decline came while DeFi total value locked rose by about 40%. Safe has also lost stablecoin market share. Global stablecoin supply increased by about 135%, while stablecoins held in Safe wallets on Ethereum rose only 11%. Safe’s share of circulating USDC fell from 12.8% to 2.5%. The Safe governance dispute may not immediately affect operations, but it raises regulatory and reputational risks. Traders should monitor the regulator’s response, board changes, revenue updates, wallet outflows and any renewed selling pressure in SAFE.
Bearish
The news is bearish for SAFE because it combines governance uncertainty with weakening adoption and financial performance. In the short term, a regulatory complaint, demands for board changes and allegations of conflicts of interest could increase selling pressure and discourage risk-averse traders. Falling wallet assets, weaker stablecoin share and revenue below target also provide negative fundamental signals. The impact may be limited initially because the complaint does not directly suspend Safe’s operations, and the regulator has not announced enforcement action. A credible restructuring, stronger independent oversight or improved usage could reduce the discount applied to SAFE. However, until the regulator responds and Safe demonstrates renewed asset growth, traders are likely to treat the dispute as a negative catalyst. Continued wallet outflows or additional governance revelations could further weaken SAFE, while a formal resolution and better operating data could support a recovery.