Jack Dorsey Proposes a Non-Profit Bitcoin Legal Defense Fund for Developers as Lawsuits Increase
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Ex-Twitter CEO and Block founder Jack Dorsey has recently proposed something very interesting. The popular crypto figure says that due to increasing pressure from authorities, the crypto community should create legal defense. It would come in the form of a non-profit defense fund for Bitcoin developers as the community is facing immense pressure lately.
Bitcoin developers have been targeted with threats and multi-front litigation. Many have given up developing being unable to handle the pressure and having no legal support. Instead of capitulating, the newly proposed Bitcoin legal defense fund will give them the legal blanket they need so developers don’t lose that stream of revenue.
Signed by Other Crypto Figures
The proposal was sent by email on January 12 and sent to the Bitcoin developer mailing list. Besides Dorsey, other important figures in the crypto community have shared their support. Among them are Martin White as well as Alex Morcos, co-founder of Chaincode Labs.
The main purpose of this newly proposed Bitcoin fund is to give Bitcoin developers the legal support they need. This community has been under constant attack recently, leaving many without their projects and no source of income. With the non-profit fund Dorsey proposes, they would get the legal support they need and a way to pay the legal bills.
According to Dorsey’s mail, the fund will first be looking to coordinate the defense on Wright’s Tulip Trading lawsuit against numerous Bitcoin developers. This lawsuit claims that they’ve breached “fiduciary duty” related to the crypto theft from the Mt. Gox hack. Tulip Trading is represented by Ontier LLP and has the green light from a high London court to serve papers. It has targeted 16 Bitcoin developers over funds stolen from the Mt. Gox hack.
At the same time, Wright is also suing unknown groups that hosted the Bitcoin whitepaper. Apparently, it’s a suit for breach of copyright. The 16 targeted Bitcoin developers have no legal way to fight Wright’s claims, but thanks to Dorsey’s proposed fund, they might soon have the legal needs to strike back.
Free and Voluntary Fund
The non-profit fund will be free and voluntary for developers. They can choose to use or omit it. In the beginning, it will start with a mix of volunteers and part-time lawyers. As it grows, the board that will include Jack Dorsey will choose which lawsuits and defendants it will help. At the moment, the board is not looking for outside capital, but it may need it in the future.
Earlier in December, Wright was found not liable on breach of business partnership. The lawsuit was directed on him and a former associate, Dave Kleiman from Florida who has passed away. The suit was focused on claims that Wright developed the Bitcoin protocol himself, or if it was a business partnership with Kleiman. Wright also claimed that he is Bitcoin’s founder Satoshi, although those claims have not been tested in court.
It remains to be seen if Dorsey’s great proposal will actually catch fire. It would be great to have a fund for the Bitcoin developers that can’t stand legal ground on their own.
