Jack Dorsey proposes the creation of a legal defense fund for BTC developers

Jack Dorsey, the CEO of Block, has announced plans to form Bitcoin Legal Defense Fund, a non-profit organization that would offer Bitcoin developers legal protection. Dorsey suggested this idea through an email he sent to the Bitcoin Developer’s mailing list earlier today.

Through this initiative, the American entrepreneur hopes to help the Bitcoin community, which is currently under multi-front litigation.

In the email he sent, Dorsey pointed out that,

The email described the Bitcoin Legal Defense Fund as an entity that would help minimize legal headaches that intimidate developers, inhibiting them from actively developing Bitcoin and related projects like the Lightning Network and Bitcoin privacy protocols.

Specifically, Dorsey noted that the fund would focus on defending developers from lawsuits based on their work in the Bitcoin ecosystem. To ensure the safety of developers, the fund would handle responsibilities like finding and retaining defense counsel, developing litigation strategy, and paying legal bills.

A free and voluntary option for developers

Dorsey added that this initiative is free and voluntary for Bitcoin developers. According to him, the fund will start with a corps of volunteer and part-time lawyers. He further pointed out that the fund’s board would be responsible for selecting which lawsuits and defendants the fund would help defend.

Dorsey remarked,

The email, which was co-signed by Chaincode Labs co-founder Alex Morcos and academic Martin White, detailed that the fund’s first task would be taking over the coordination of the Tulip Trading lawsuit, which alleges that certain developers breached fiduciary duties. Additionally, the fund will provide the source of funding for outside counsel.

This news comes after Dorsey left Twitter at the end of November 2021, relinquishing the CEO position to Parag Agrawal. Soon afterwards, he led Square’s rebranding to Block, steering the financial payments company down a blockchain path.

The company has since been experimenting with crypto, including a decentralized exchange (DEX) for trading Bitcoin (BTC/USD) among other cryptos.