Former Twitter CEO, Jack Dorsey, announces Bitcoin Legal Defense Fund
in Crypto News
On Wednesday, former Twitter CEO Jack Dorsey announced that the Bitcoin Legal Defense Fund would be established to safeguard troubled Bitcoin developers from lawsuits and threats that would jeopardize their ability to create new projects on the Bitcoin network.
Although the crypto space is still relatively new, it has seen considerable litigation as various developers have had to fight it out in the courts over their products. This Fund will provide legal representation for these developers who might otherwise have had to stop working due to a lack of cash.
What You Should Know About The Fund
In an email to the bitcoin-dev mailing list on January 12, Dorsey noted that the nonprofit’s goal is to protect Bitcoin developers from legal threats to prevent contributors and maintainers from capitulating, which is all too often the case because many lack legal backing.
The Fund offered to provide legal support to anyone forced to submit to protracted legal battles over their work on Bitcoin, citing a wave of “multi-front litigation” that has harmed Bitcoin development.
Dorsey noted in the mail:
“The Bitcoin Legal Defense Fund is a nonprofit entity that aims to minimize legal headaches that discourage software developers from actively developing Bitcoin and related projects such as the Lightning Network, Bitcoin privacy protocols, and the like.”
According to the email uploaded on Twitter by Zack Voell, the primary goal of the Fund was to assist these developers in defending themselves against lawsuits. It will aid developers in locating and retaining defense attorneys, creating litigation strategy and helping with the payment of legal fees.
The fund's board of directors includes Jack Dorsey, Alex Morcos, the co-founder of Chaincode Labs, and Martin White, an academic at the University of Sussex.
Dorsey Sees Bitcoin Protection As A Crucial Job
The Fund’s first project, according to the email, will be to take up Ramona Ang’s “Tulip Trading Lawsuit” against developers for suspected malfeasance regarding access to a Bitcoin (BTC) fortune.
The Tulip Trading case was filed against several developers, alleging that they had breached their fiduciary duties. The Bitcoin Defense Fund will contribute to the legal defense of the developers mentioned in the complaint by providing funding for independent lawyers.
The email stated:
“This is a free and voluntary option for developers to take advantage of if they so wish. The Fund will begin with a group of part-time and volunteer lawyers. The Fund’s board of directors will decide which lawsuits and defendants it will assist in defending.”
Recently, Bitcoin Core was subject to multiple threats to the project, with many of the project’s developers backing out as a result. Jonas Schnelli, Bitcoin Core’s maintainer, stood down in October 2021, citing rising “legal concerns for Bitcoin developers” and recommending that new contributors “join secretly.” Two more developers quit the project in December. After three years of effort, Samuel Dobson also announced early in that month that he would no longer support Bitcoin Core to focus on his PhD. John Newbery followed suit a few days later, saying he was “moving on to other things.”
Dorsey is a well-known Bitcoin maximalist, stating that Bitcoin is the most crucial job he has ever done. Dorsey and rapper Jay-Z have teamed up to create a $23 million fund to support Bitcoin development in emerging regions such as Africa and India.
Dorsey earlier said, “Whatever I can do, whatever my companies can do to make [Bitcoin] more accessible to everyone is how I’m going to spend the rest of my life.”
This content is for informational purposes only and is not investment advice. You should consult a qualified licensed advisor before engaging in any transaction.