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TechCrunch: How Jack Dorsey’s Bitcoin Legal Defense Fund is fighting for the future of open source software

Bitcoin Legal Defense Fund on April 28, 2023

“A crypto wallet theft lawsuit brought about by a man who claims to be Bitcoin creator Satoshi Nakamoto could jeopardize the future of open source software development.

That’s according to the Jack Dorsey-backed Bitcoin Legal Defense Fund, which is taking on a case to defend 11 Bitcoin developers named in a lawsuit filed by Craig Wright, an Australian computer scientist who emerged into the spotlight back in 2016 with a hotly disputed claim of being Bitcoin’s founding father.

The crux of the case in question dates back to 2021 when Wright, through a Seychelles-based firm called Tulip Trading, launched a so-called “letter before action” against 16 Bitcoin software developers, in an attempt to regain access to £4 billion ($5 billion) worth of Bitcoin he claims to own….”

 

Read the full story at TechCrunch

Law360: Bitcoin ‘Inventor’s’ £4.5B Crypto Claim Fraudulent, Devs Say

Bitcoin Legal Defense Fund on April 27, 2023

“A group of bitcoin developers has accused the self-proclaimed ‘inventor’ of the cryptocurrency of falsely claiming to be the owner of around £4.5 billion ($5.6 billion) of bitcoin he is trying to get back after being hacked, by suing the group.

In its defense filed in the High Court on Wednesday, a group of 10 developers said Dr. Craig Wright, who claims to be the creator of the cryptocurrency, has presented fake proof of ownership of the digital assets.

The developers also suggested that the Australian computer scientist’s story about losing access to the bitcoin in a hack is untrue. They said that Wright’s lawsuit, brought by his company Tulip Trading Ltd., is ‘fraudulent’ and ‘an abuse of the court’s process’….

 

Read the full story at Law360

 

Fortune: Jack Dorsey is the hero that crypto—and the internet—needs right now

Bitcoin Legal Defense Fund on April 27, 2023

“A crypto-loving social media billionaire is flexing his influence again, and I’m not talking about Elon Musk. Instead, I’m thinking of Jack Dorsey, the CEO of Block and the cofounder of Twitter, which Musk is rapidly running into the ground.

Dorsey has occupied many roles over the years, including fashion influencer. But his latest one is legal champion for the Bitcoin community. That was on display this month in a London court where Dorsey is footing the bill for the defense of Bitcoin developers who are being sued by Craig Wright, who has for years falsely claimed to be Satoshi Nakamoto…”

 

Read the full story at Fortune

Decrypt: Bitcoin Legal Defense Fund Backs Developers in Lawsuit Against Craig Wright

Bitcoin Legal Defense Fund on April 26, 2023

“The Bitcoin Legal Defense Fund (BLDF), a non-profit co-founded by Block (formerly Square) CEO Jack Dorsey, announced Wednesday that it is supporting the legal defense for a number of Bitcoin Core developers targeted by a lawsuit filed by Craig Wright and his firm, Tulip Trading. “The Bitcoin Legal Defense Fund has stepped up to fight for more than just Bitcoin—we are here to defend the right to build free, open-source software without fear,” Jessica Jonas, Chief Legal Officer at the Bitcoin Legal Defense Fund, told Decrypt…”

 

Read the full story at Decrypt

Bitcoin Legal Defense Fund Supports Developers in Lawsuit That Will Decide the Fate of Open Source Software

Bitcoin Legal Defense Fund on April 26, 2023

FOR IMMEDIATE RELEASE

 

The Bitcoin Legal Defense Fund, a non-profit co-founded by Jack Dorsey, Alex Morcos, and Martin White, and spearheaded by Jess Jonas, is coordinating the defense of Bitcoin developers targeted in lawsuits by Craig Wright that have major potential implications for the future of Bitcoin and open source software development. 

 

NEW YORK, NY (April 26, 2023) —The Bitcoin Legal Defense Fund, a non-profit organization dedicated to supporting the legal defense of Bitcoin developers, has helped finance and organize the defense for 11 Bitcoin Core developers targeted in a lawsuit brought against them by Craig Wright and his firm, Tulip Trading. 

 

On April 26, 11 Bitcoin Core developers who are being supported by the Bitcoin Legal Defense Fund will file their substantive defence in the Tulip Trading case, which has serious potential implications for the future of Bitcoin and open source software development. This marks the first time that these developers have challenged the substantive allegations made by Tulip Trading. 

 

BACKGROUND ON THE TULIP TRADING CASE

 

The lawsuit in question, Tulip Trading Limited v. Bitcoin Association For BSV & Others, traces its origins to an alleged hack in February 2020 that resulted in the loss of 111,000 Bitcoin that Wright claims to own. In February 2021, Tulip Trading issued a “Letter Before Action” announcing its intention to take legal action against certain Bitcoin developers to recover the allegedly lost Bitcoins. 

 

In early 2022, a justice in the England and Wales High Court rejected Tulip Trading’s case on the grounds that it had not “established a serious issue to be tried.” Tulip Trading appealed the lawsuit and in a surprise move in March of 2023, the UK appellate court overturned the High Court decision finding instead that Tulip raised a “serious issue” to be tried. “If the decentralised governance of bitcoin really is a myth,” the appellate judges wrote in their decision, “then in my judgment there is much to be said for the submission that bitcoin developers, while acting as developers, owe fiduciary duties to the true owners of that property.”

 

The appellate decision opened the door for a full trial in the Tulip Trading lawsuit, which is anticipated to occur at a to-be-determined date in 2024. 

 

“We believe that these lawsuits are frivolous, but we still have to oppose them vigorously,” said Jess Jonas, the Chief Legal Officer of the Bitcoin Legal Defense Fund. “The Bitcoin Legal Defense Fund is fighting for more than just Bitcoin—it’s fighting for the right of developers to create free and open source software without fear of legal retaliation.” 

 

WHAT’S AT STAKE IN THE TULIP TRADING CASE

 

The Tulip Trading lawsuit challenges one of the key principles of the Bitcoin network: that a user’s private key is required to effect a transaction and it cannot be overwritten by a group of developers in order to benefit, and prefer, a particular individual. 

 

Beyond Bitcoin, this lawsuit could have grave implications for open source developers everywhere. If the UK courts rule in Tulip Trading’s favor it would potentially mean that open source developers become fiduciaries to users of software that they had contributed to, even in projects without any formal assumption of duty or compensation for the costs and associated risks.

 

This means that open source developers could be legally compelled to rescue users of their software, without knowledge of who those users are, how many there are, or where they are located— even though open source licenses expressly disclaim liability.

 

“The Bitcoin Legal Defense Fund fights not just for Bitcoin but for the right of open-source developers to create and freely share their code with the world for the greater good,” said Alex Morcos, the co-founder of Chaincode Labs and the Bitcoin Legal Defense Fund. “The Tulip Trading case threatens not only the MIT License but also the very notion of freedom of speech. Our collective mission is to safeguard innovation by shielding developers from legal intimidation. By rallying together in their support, we are helping them build Bitcoin and ensuring the right of developers everywhere to continue innovating and driving progress.”

 

The fact that Craig Wright’s personal claims are being brought against developers of an open source project like Bitcoin is likely to have an immediate and serious dampening effect on the willingness of developers to participate in open source projects. It is critical to provide them adequate legal support to mount a strong defense.

 

“The Tulip Trading case highlights the fact that legal attacks on Bitcoin are actually attacks on the fundamental principles of open-source software,” said Jack Dorsey, the CEO of Block and co-founder of the Bitcoin Legal Defense Fund. “The outcomes of these cases are important for everyone, even those who may not be interested in Bitcoin, because these lawsuits could have serious detrimental effects on open-source development writ large, which will negatively impact our lives in ways we may not even realize until it’s too late.”

 

In addition to the Tulip Trading case, the Bitcoin Legal Defense Fund is also supporting developers in a second lawsuit brought against Bitcoin developers by Craig Wright. In that case, Wright, Wright International & Others v. BTC Core & Others, Wright alleges that he is Satoshi Nakamoto (the pseudonymous creator of Bitcoin) and thus owns the copyright for the Bitcoin Whitepaper and the database rights for the Bitcoin blockchain. 

 

Should the developers fail to defend this claim vigorously, or should Mr. Wright otherwise be successful, it would, in the eyes of the law, allow Craig Wright ultimate control over the Bitcoin network. He would be permitted to decide who uses the Bitcoin network, the terms of use for the Bitcoin network, and could also control the client software for interacting with the blockchain.

 

The Bitcoin Legal Defense Fund is committed to supporting Bitcoin developers and protecting the principles of free and open-source software development. The Fund urges everyone to support this cause and help safeguard innovation and progress for developers everywhere.

 

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ABOUT THE BITCOIN LEGAL DEFENSE FUND

 

The Bitcoin Legal Defense Fund was founded in January 2022 by Jack Dorsey (CEO, Block), Alex Morcos (Cofounder, Chaincode Labs), and Martin White (Head of Litigation, Block), and spearheaded by Jess Jonas, to help developers in the Bitcoin ecosystem with their legal needs. The fund is a free and voluntary service for developers designed to safeguard innovation by shielding developers from legal intimidation.

 

For more information or to donate to the Bitcoin Legal Defense Fund please visit bitcoindefense.org.

 

PRESS CONTACT

press@bitcoindefense.org

Bitcoin Magazine: Bitcoin Legal Defense Fund Prepares for Case that Could Have Wide Ramifications for Open Source Developers

Bitcoin Legal Defense Fund on April 25, 2023

“The Bitcoin Legal Defense Fund, a non-profit organization co-founded by Jack Dorsey, Alex Morcos and Martin White, is backing 13 Bitcoin Core developers facing lawsuits by Craig Wright. The cases could potentially have major impacts on the future of Bitcoin and open-source software development.

Eleven of the developers being supported by the Fund will file their defense on April 26. Tulip Trading Limited v. Bitcoin Association For BSV & Others, in which the developers are named, stems from an alleged hack in February 2020 that resulted in the loss of 111,000 bitcoin that Wright claims to own. In February 2021, Tulip Trading issued a “Letter Before Action” announcing its intention to take legal action against certain Bitcoin developers to recover the allegedly lost bitcoin.”

 

Read the full story at Bitcoin Magazine