Jack Dorsey wants to support Bitcoin developers in the face of justice

Jack Dorsey, co-founder of Twitter and chief executive of Block (formerly Square), proposes the creation of a nonprofit legal defense fund to protect Bitcoin developers from the growing litigation they face.

It is Zack Voell, who “loves bitcoin”, who revealed on Twitter the plans of the former leader of the platform, transcribing one of his e-mails.

Litigation growth

In this email, Jack Dorsey claims that the “Bitcoin community is currently the subject of litigation on several fronts”. “Continued litigation and threats are having the desired effect; the individual defendants chose to capitulate in the absence of legal support,” he adds. He points out that “free software developers, who are often independent, are particularly sensitive to legal pressures”.

In response to what he sees as a growing trend of legal opposition to Bitcoin developers, Jack Dorsey wants to create a “coordinated and formalized response to help defend developers.” This response will be called the Bitcoin Legal Defense Fund, and it will be a new non-profit organization designed to help developers working in all aspects of software development and of bitcoin assets.

In the post, the former Twitter CEO specifically mentions projects like “the Lightning Network, Bitcoin privacy protocols and others.”

Free help

The fund will be empowered to help its grantees find and retain legal counsel, develop comprehensive legal strategies for cases relating to legal issues related to bitcoin and its blockchain, and provide funds to pay related legal bills.

For Jack Dorsey, this organization must be a “free option based on voluntary work, which developers can take advantage of if they wish”.

At its creation, the Bitcoin Legal Defense fund will be composed of a “corps of volunteer and part-time lawyers”. The specific cases undertaken by the fund will be determined by its board of directors.

The Tulip Trading trial

The fund has already named its first target: the ongoing “Tulip Trading” lawsuit, which involves self-proclaimed Bitcoin creator Craig Steven Wright.

The lawsuit was filed against “certain developers alleging breach of fiduciary duty.”

This lawsuit relates to the infamous Mt. Gox cryptocurrency exchange, and the fallout from the hack of this now defunct exchange, which resulted in the theft of nearly $200 million in bitcoin and other currencies.

Funding provided internally for the time being

The Bitcoin Legal Defense fund will coordinate ongoing legal proceedings and provide funds to obtain outside counsel.

This funding is currently provided internally. For the leader of Block, “the fund does not seek to raise additional funds for its operations, but will do so at the request of the board of directors if it proves necessary for other legal actions or to pay staff “.

Jack Dorsey concludes his letter by promising to give more information about this organization in the near future.

Source: ZDNet.com

Leave a Comment