Former Twitter CEO Jack Dorsey is assisting in the development of a new fund dedicated to defending Bitcoin developers against lawsuits.
Its first priority will be to assist Bitcoin developers being sued by Craig Wright’s Tulip Trading Limited for claimed “breach of fiduciary responsibility.” The fund will cover the costs of independent counsel.
Dorsey portrayed the open-source community as “particularly sensitive to legal coercion” in an email to developers delivered early on January 12.
“As a reaction, we offer a concerted and codified approach that will assist developers in defending themselves,” he added.
The Bitcoin Legal Defense Fund, a not-for-profit organisation, will aid developers in resolving legal challenges that may impede their work, he noted.
It will do this by assisting in the appointment of defence lawyers, developing defence strategy, and paying legal expenses. The planned service would be free for creators of Bitcoin-based enterprises – Dorsey alluded to the Lightning Network in his remarks.
To begin, the fund will be staffed by volunteers and part-time attorneys, with a board of directors in charge of distributing its resources. According to the email, the board includes Dorsey, Chaincode Labs co-founder Alex Morcos, and professor Martin White.
“At this time, the fund is not seeking more funding for its operations, but will do so at the discretion of the board if further legal action or staff compensation is required,” Dorsey wrote.
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