The lawsuits are weighing heavily on the Bitcoin ecosystem, and former Twitter chief Jack Dorsey believes he can help push them back. Cash reports Dorsey, Alex Morcos of Chaincode and academic Martin White have offers a nonprofit legal defense fund for Bitcoin developers to protect them from similar lawsuits and “legal pressures”. The fund’s board of directors (currently Dorsey, Morcos and White) would choose which cases to support, with part-time and volunteer lawyers providing the first defense lawyer free of charge.
The fund will initially coordinate the defense against Tulip Trading trial targeting developers for alleged violations of fiduciary duty related to the long-dead mount. Bitcoin Gox exchange. Dorsey did not specify how much money the fund was due to start, but noted that he was not looking for additional money “at this time.”
Dorsey has direct incentives to establish a legal defense fund, of course. His company Block is heavily involved in Bitcoin, other cryptocurrencies, and the blockchain, and the flurry of lawsuits could tarnish his business as much as anyone else’s. However, Dorsey noted that many Bitcoin developers are freelancers who have no choice but to give up in the face of lawsuits they don’t have the resources to fight for. The association could prove to be vital if it strengthens the Bitcoin community as a whole, whether or not Dorsey directly benefits from his actions.
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