Former Twitter CEO Jack Dorsey recently announced through a mailing list sent to Bitcoin developers that he is working alongside Chaincode Labs co-founder Alex Morcos and Martin White, an academic from the University of Sussex, to set up a legal defense fund exclusively protecting Bitcoin developers.
According to the email, the fund will help provide a legal defense network for Bitcoin developers, one that’s composed of a team of volunteers as well as part-time lawyers.
“The main purpose of this Fund is to defend developers from lawsuits regarding their activities in the Bitcoin ecosystem, including finding and retaining defense counsel, developing litigation strategy, and paying legal bills.” Dorsey said in the emailed statement.
The fund aims to assist Bitcoin developers who are “currently the subject of multi-front litigation” with obtaining legal defense. According to Dorsey’s announcement, the ‘Bitcoin Legal Defense Fund’ is set up as a “nonprofit entity that aims to minimize legal headaches that discourage software developers from actively developing Bitcoin and related projects.”
The move comes at a critical period for both Bitcoin and crypto in general, amid a generally unforgiving regulatory climate.
“Litigation and continued threats are having their intended effect; individual defendants have chosen to capitulate in the absence of legal support,” Dorsey said, adding that the defense fund proposes a “coordinated and formalized response to help defend developers.
The announcement also mentions its first project phase, which is to take over the coordination of the existing defense of the infamous Tulip Trading Lawsuit, which is currently leveled against certain developers alleging breach of fiduciary duty. The fund also promises to provide resources for outside counsel, although it has also disclosed that it is not currently seeking to raise any additional funding for its operation.
Jack Dorsey, Alex Morcos, and Martin White signed the email announcement as the Bitcoin Legal Defense Fund’s board of directors. The fund counts as one of many initiatives led by Dorsey to expand and accelerate the adoption of Bitcoin.
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