Twitter co-founder Jack Dorsey wants to establish a legal defense fund for bitcoin developers. He believes the community is facing multi-front litigation and threats. And this has forced some developers without legal support to cede.
Dorsey says open-source developers, who often work independently, fall easily to legal pressure. As such, Block’s CEO proposes an in-time and standard response to help defend the developers. Dorsey highlighted the “Bitcoin Legal Defense Fund” as a non-profit entity that works to minimize legal headaches that discourage software developers from actively developing BTC.
The Fund takes it upon itself to safeguard developers from lawsuits regarding their work in the bitcoin ecosystem. This includes finding and retaining defense counsel, creating legal strategy and paying legal fees. Dorsey explained that this is a free and voluntary option for developers to use its benefits. The Fund will commence with volunteers and part-time lawyers. The Fund’s Board will determine which lawsuits and defendants it will support.
Dorsey said the Fund’s initial activities will be to examine the Tulip Trading lawsuit against certain developers. They have been alleged of breaching the fiduciary duty. The Fund will provide funding for outside counsel. However, it will not raise additional money for its operations. It will do so as per the direction of the board.
Experts say the timing of the Fund is commendable as countries and jurisdictions are coming up with more regulatory and legal pressure on cryptocurrencies, especially bitcoin. The Fund is a step in the right direction to protect the crypto ecosystem and those working in the crypto space. It will also set a standard for similar open-source networks.