Jack Dorsey, the ex-CEO of the popular microblogging and social networking platform, Twitter, has recently proposed a new initiative geared toward supporting the development of the Bitcoin ecosystem, dubbed the “Bitcoin Legal Defense Fund”.
Dorsey announced his proposal via a mailing list for Bitcoin developers on Wednesday, pointing out that the Fund’s main purpose is to defend Bitcoin developers from lawsuits against their activities towards the development of the Bitcoin ecosystem.
Describing the proposed fund, Dorsey wrote,
“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.”
The email noted that the fund will be voluntary for developers to use if they choose to seek assistance and will include volunteers and part-time lawyers. However, the fund’s board will be responsible for deciding which lawsuit and defendants it will help defend.
The Fund’s board includes Jack Dorsey, academic Martin White, and the co-founder of Chaincode Labs Alex Morcos.
The email also emphasized that the Fund is not looking to raise additional capital for its operations at this point, but it may do so later on at the direction of the board.
Protection Against Wright’s Tulip Trading Lawsuit
According to the email, the rise of several “multi-front litigation and continued threats,” has driven “individual defendants to capitulate in the absence of legal support.”
“Open-source developers, who are often independent, are especially susceptible to legal pressure,” the email reads.
The Fund’s first project will be to coordinate a defense for the developers involved in the lawsuit filed by Tulip Trading Limited, a company associated with the self-proclaimed Bitcoin creator, Craig Wright.
Using Tulip Trading, Wright sued about 16 developers for an alleged “breach of fiduciary duty” with the theft of bitcoin from the Mt. Gox hack.
Dorsey’s Unwavering Support for Bitcoin
Dorsey has long been a strong Bitcoin proponent and has engaged in various initiatives geared towards the continuous development of the Bitcoin ecosystem.
Last year, he had teamed up with some of the biggest names in the music industry, including Lil Wayne and Jay-Z to support bitcoin development with $23.7 million worth of bitcoin.
Earlier in June, he also revealed that his payment company, Block (formerly square) might soon develop a bitcoin hardware wallet, to further boost the security of funds.