Block founder and CEO Jack Dorsey proposed creating a legal defense fund for Bitcoin developers as the community faces "multi-front litigation" and "threats" that have forced some without legal support to "capitulate."
- The main purpose of the fund is to defend developers by finding and retaining defense counsel, developing litigation strategy and paying legal bills.
- According to the post, the Fund's first activity will be to run point on coordinating the defense of Craig Wright's Tulip Trading lawsuit against various bitcoin developers in relation to a "breach of fiduciary duty" with regards to the theft of crypto from the Mt. Gox hack.
- Ontier LLP, the law firm representing Tulip Trading, has been given the green light by a London High Court to serve papers on 16 Bitcoin-related developers in a fight over funds from the defunct Mt. Gox exchange. At the same time, Wright is suing groups that hosted the Bitcoin white paper for breach of copyright.
- The fund is free and voluntary for developers to use if they so choose, the email reads. It will start a corps of volunteer and part-time lawyers. The fund's board will determine which lawsuits and defendants it will help defend.
- At this time, the trio says, the Fund is not looking to raise outside capital, but may do so in the future at the direction of the board
- In December, Wright was found not liable for a breach of a business partnership with a former associate, deceased Florida computer forensics expert Dave Kleiman. The suit was focused on claims that Wright developed the Bitcoin protocol on his own, or if it was a partnership between Wright and Kleiman. Wright's claims that he is Satoshi were not tested in court.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.