Jack Dorsey Creates Legal Fund for Bitcoin Developers
Jack Dorsey announced the creation of a non-profit group, the Bitcoin Legal Defense Fundto help developers of the original cryptocurrency deal with “legal headaches”.
In an email sent to developer mailing list On Wednesday, Mr. Dorsey, a bitcoin evangelist, wrote that “continued litigation and threats are having their intended effect; individual defendants chose to capitulate in the absence of legal support.
Founder of payment company Block, formerly known as Square, Dorsey is deeply invested in the development of Bitcoin, the DealBook newsletter reports. He resigned as CEO of Twitter in November to advance Block’s cryptocurrency ambitions, and he said Bitcoin was the most important thing he could work on in this life. Block holds over $350 million worth of Bitcoin in its corporate treasury.
Mr Dorsey’s fund will provide free legal advice and rely primarily on part-time and pro bono lawyers. Council members, including Mr. Dorsey, will review the cases and decide who will receive help from the group.
First on the roll: Tulip Trading, a Seychelles-based company run by Craig Wright, a litigious Australian computer scientist who claims to be Satoshi Nakamoto, the pseudonym of Bitcoin’s creator. He has sued top Bitcoin developers after losing a fortune in a hack, invoke breach of fiduciary dutyadding that a small team of people control the Bitcoin network and have a duty to protect users and help recover tokens lost through theft.
A loss for developers in this case could have a chilling effect on the cryptocurrency, which is likely why Dorsey said the new fund would “take over existing defense coordination.” If developers are held liable for losses caused by hackers, the risks of contributing to the Bitcoin network could outweigh the rewards.
The fund is not seeking contributions at this time, and Mr Dorsey has not disclosed how much money he has.