Jack Dorsey proposes a non-profit legal fund for cryptocurrency developers

Jack Dorsey proposes a non-profit legal fund for cryptocurrency developers - Jack Dorsey AssetsDorsey believes BTC developers need to be backed by a legal defense fund, as they are vulnerable to legal attack. He said these developers face multiple litigation threats, and most of them are without legal support.

A necessary fund for developers

Dorsey wants BTC stakeholders to create a legal team for their developers

Earlier today, Jack Dorsey submitted his legal fund proposal via email addressing the BTC-dev mailing list. His email bore the signatures of him, Chain Code Labs co-founder Alex Morcos, and academician Martin White. The letter is also available in some Tweets.

According to Jack, the need for this fund lies in the challenges the developers face. He explained that they have a hard time finding loyalty from consultants, finding litigation strategies, and paying the bills of their legal teams.

According to Jack Dorsey, the fund will not raise any capital from the public in any way for now. However, it may choose to get funding in the future, but only after getting the green light from its board of directors.

Learn more about Dorsey's proposed Developer Legal Defense Fund

The fund will begin by supporting developers in the case of the MT GOX cyberattack according to the post. He explained that the fund will help in the defense against Wright's Tulip Trading lawsuit that some BTC developers are facing regarding the funds lost in the cyberattack on the exchange.

The battle against cybercrime

A London court has given Ontier LLP - the law firm representing Tulip Trading - the green light to serve documents to 16 BTC developers regarding the MT GOX hack. At the same time, Wright is also suing other organizations that hosted BTC's whitepaper on copyright grounds.

For Dorsey and his supporters, the fund will be free and voluntary to increase accessibility for developers if they need to use it. Builds a corporation of non-profit and part-time legal counsel. Furthermore, the board behind the fund will have full rights to decide in which cases it will be involved.

The MT GOX case is one of the worst cyberattacks in the cryptocurrency space. The attack resulted in the loss of hundreds of thousands of Bitcoins (quotation in real time) from this once-largest exchange globally. Even though the authorities have recovered some of the stolen BTC, more is still missing. These developments are to be watched as judicial battles continue regarding the loss of funds.

Last month Wright won a court battle that freed him from violating a business partnership with David Kleiman. The late Kleiman was a computer forensic specialist, and his family believed he had helped Wright build BTC. However, the evidence has overturned in Wright's favor who has the sole right to the net.

Closing the case gives him the right to pursue copyright issues surrounding BTC's white paper. Now, MT GOX victims can only wait to see how events unfold ahead of the ongoing legal struggles.