The lawsuits are weighs heavily on the Bitcoin ecosystem, and former Twitter director Jack Dorsey thought he could help fend them off. Coindesk report Dorsey, Chaincode’s Alex Morcos and scholar Martin White have offer a non-profit legal defense fund for Bitcoin developers to protect them against lawsuits and similar “legal pressure”. The foundation’s board of trustees (currently Dorsey, Morcos and White) will select cases to assist, with part-time attorneys and volunteers providing initial defense attorneys at no cost.
The fund will initially take over coordination to protect against the Tulip Trade litigation targeted developers for allegedly breaching fiduciary duties regarding the long dead MT. Gox Bitcoin exchange. Dorsey did not say how much funds it must have to begin, but noted that it is not seeking additional funds “at this time.”
Of course, Dorsey has a direct incentive to set up a legal defense fund. His corporate block is heavily involved in Bitcoin, other cryptocurrencies and blockchain, and a series of lawsuits that could affect his business as much as anyone else. However, Dorsey noted that many independent Bitcoin developers have little choice but to give up in the face of lawsuits they don’t have the resources to fight. The nonprofit could prove vital if it strengthens the Bitcoin community at large, whether or not Dorsey directly benefits from its actions.
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