Bitcoin Foundation

The foundation was formed in late 2012, after Bitcoin had earned a reputation for criminality and fraud, and was modeled on the Linux Foundation. The founding chairman of the board was Peter Vessenes.

Former lead Bitcoin developer Gavin Andresen was hired by the foundation as "chief scientist." In June 2013, the foundation received a letter from the California Department of Financial Institutions requesting that they "cease and desist from conducting the business of money transmission in this state,"{{cite magazine |url=https://www.wired.com/wiredenterprise/2013/06/california_dfi/ |first=Robert |last=McMillan |date=24 June 2013 |access-date=31 December 2013 |title=California says the Bitcoin Foundation is a money-transferrer |magazine=Wired}} and again when it published their detailed response to the regulators.{{cn|date=May 2019}} In November 2013, Patrick Murck, general counsel of the foundation, testified before a United States Senate committee convened to assess digital currencies, at which the reception of bitcoin by lawmakers was generally positive.{{cite news |url= https://www.washingtonpost.com/business/economy/for-bitcoin-a-successful-charm-offensive-on-the-hill/2013/11/22/000ed4b0-53b1-11e3-a7f0-b790929232e1_story.html |title= For Bitcoin, a successful charm offensive on the Hill |date= 23 November 2013 |access-date= 24 November 2013 |first= Timothy |last= Lee |newspaper= Washington Post}}

In January 2014, the foundation's vice-chairman, Charlie Shrem, was arrested for aiding and abetting the operation of an unlicensed money-transmitting business related to his role in assisting agents of the online marketplace Silk Road; he resigned later that month and pled guilty in September 2014.Jerving, Sara (September 6, 2014) [https://www.wsj.com/articles/bitcoin-promoter-charles-shrem-pleads-guilty-1409870506 "Bitcoin Promoter Charles Shrem Pleads Guilty"] The Wall Street Journal{{cite web|last=Hill|first=Kashmir|title=Winklevosses, Bitcoin Community Shocked By Arrest of BitInstant CEO Charlie Shrem|website=Forbes.com|url=https://www.forbes.com/sites/kashmirhill/2014/01/27/winklevosses-bitcoin-community-shocked-by-arrest-of-bitinstant-ceo-charlie-shrem/|date=January 27, 2014|access-date=May 16, 2014}}{{cite web|last=Jeffires|first=Adrianne|title=Charlie Shrem resigns from the Bitcoin Foundation after arrest|website=The Verge|url=https://www.theverge.com/2014/1/28/5354328/charlie-shrem-resigns-from-the-bitcoin-foundation-after-arrest-bitinstant|date=January 28, 2014|access-date=May 16, 2014}}

In February 2014, Mark Karpeles, then CEO of the Mt. Gox exchange, resigned from the board after Mt. Gox lost 750,000 of its customers' bitcoins and went bankrupt, causing the value of bitcoin to crash; Executive chairman Peter Vessenes' business relationship to Karpeles has been described as inappropriate.{{cite web|last=Tiku |first=Nitasha |title=Whistleblower Threatens to Expose Corruption at Bitcoin Foundation |website=ValleyWag |url=http://valleywag.gawker.com/whistleblower-threatens-to-expose-corruption-at-bitcoin-1538965958 |date=March 7, 2014 |access-date=May 16, 2014 |url-status=dead |archive-url=https://web.archive.org/web/20140517152925/http://valleywag.gawker.com/whistleblower-threatens-to-expose-corruption-at-bitcoin-1538965958 |archive-date=May 17, 2014 }} Professor and author Mark T. Williams criticized the foundation's priorities, published an editorial in Business Insider that month, and wrote: "A Foundation of 'B' players has no business claiming it is a protector of a system that remains vulnerable and untrustworthy."{{cite news | work=Business Insider | last=Williams | first=Mark T. | author-link=Mark T. Williams | date=25 February 2014 | url=http://www.businessinsider.com/mark-williams-bitcoin-lehman-brothers-type-event-2014-2 | title=Mt Gox: The tower of toxic sludge }}

In March 2014, the foundation hired Jim Harper of the Cato Institute to help it deal with policy issues and the government with the title Global Policy Counsel, and also hired Amy Weiss of Weiss Public Affairs as a media consultant.{{cite news |last1=Sidel |first1=Robin |title=Bitcoin Foundation to Ramp Up Lobbying Efforts |url=https://www.wsj.com/articles/bitcoin-foundation-hires-cato-institute-official-jim-harper-1394500176 |work=Wall Street Journal |date=11 March 2014}}{{cite press release | url=https://bitcoinfoundation.org/blog/wp-content/uploads/2014/03/2014-03-11-BTCF-New-Hires.pdf | title=Jim Harper joins Bitcoin Foundation as global policy counsel and Amy Weiss as media consultant | date=11 March 2014 | work=Bitcoin Foundation | url-status=dead | archive-url=https://web.archive.org/web/20140407120714/https://bitcoinfoundation.org/blog/wp-content/uploads/2014/03/2014-03-11-BTCF-New-Hires.pdf | archive-date=7 April 2014 }} In July 2014, the foundation retained a lobbying firm, Thorsen French Advocacy, to work for a favorable regulatory environment in the United States for bitcoin.{{Cite news|url=https://techcrunch.com/2014/07/09/bitcoin-foundation-hires-lobbying-group-to-take-the-cryptocurrency-to-washington/|title=Bitcoin Foundation Hires Lobbying Group To Take The Cryptocurrency To Washington|last=Wilhelm|first=Alex|work=TechCrunch|access-date=2017-11-20|language=en}} Some libertarian bitcoin advocates have criticized the organization's strategy of political lobbying and participation with federal regulators.{{cite web|last=Neal|first=Meghan|title=Bitcoin is Hiring Lobbyists|website=Motherboard.com|url=https://www.vice.com/en/article/sorry-cypherpunks-bitcoin-is-hiring-political-lobbyists/|date=May 12, 2014|access-date=May 16, 2014}}

In May 2014, BTC China (now BTCC) CEO Bobby Lee and venture capitalist Brock Pierce were appointed to the foundation's board of directors, filling vacancies left by the resignations of Shrem and Karpelès.{{cn|date=May 2019}} Ten people resigned from the foundation due to allegations dating from 2000 that Pierce had pressured minors into sex at a company he had founded.{{cite web|last=Menn|first=Joseph|title=Bitcoin Foundation hit by resignations over new director|website=Reuters.com|url=https://www.reuters.com/article/us-bitcoin-foundation-resignations-idUSBREA4F02B20140516|date=May 16, 2014|access-date=May 16, 2014|archive-date=May 16, 2014|archive-url=https://web.archive.org/web/20140516140855/http://www.reuters.com/article/2014/05/16/us-bitcoin-foundation-resignations-idUSBREA4F02B20140516|url-status=live}} Nine members of the foundation resigned following the May election, citing opposition to the appointments and the direction of the organization.{{cn|date=May 2019}}

In April 2015, the board appointed investor and financial consultant Bruce Fenton as Executive Director of the foundation.{{Cite web|url=https://blog.bitcoinfoundation.org/the-bitcoin-foundation-welcomes-bruce-fenton-as-executive-director/ |title=The Bitcoin Foundation Welcomes Bruce Fenton as Executive Director |date=April 13, 2015 |website=Bitcoin Foundation |archive-url=https://web.archive.org/web/20150510213018/https://blog.bitcoinfoundation.org/the-bitcoin-foundation-welcomes-bruce-fenton-as-executive-director/ |archive-date=May 10, 2015 |access-date=March 28, 2016 |url-status=unfit }} In July 2016, Fenton was replaced by Llew Claasen.{{Cite web|url=https://bitcoinfoundation.org/bitcoin-foundation-appoints-llew-claasen-as-executive-director/|title=Bitcoin Foundation Appoints Llew Claasen as Executive Director|access-date=2016-07-12|archive-url=https://web.archive.org/web/20160724103639/http://bitcoinfoundation.org/bitcoin-foundation-appoints-llew-claasen-as-executive-director/|archive-date=2016-07-24|url-status=dead}}

In July 2015, Janssens made a public announcement on both the foundation's online forum and Reddit concerning the near-term insolvency of the organization, which had been kept secret by the board. As a result of this and a lack of cash flow, various staff were terminated.{{Cite web|url = http://www.financemagnates.com/cryptocurrency/news/olivier-janssens-bitcoin-foundation-has-no-money-left/|title = Olivier Janssens: Bitcoin Foundation Has No Money Left|last = Pick|first = Leon|date = July 4, 2015|website = Financial Magnates|access-date = March 28, 2016}} Following disagreement over the future of the organization—Harper and Janssens having both cast votes to dissolve the Foundation—Harper resigned and Janssens was removed from the Board in December 2015.{{cn|date=May 2019}}

The Bitcoin Foundation’s 501(c)(6) tax status was revoked by the IRS on May 15, 2022. As of 2024, the organization remains active.{{Cite web |title=The Bitcoin Foundation Official 501-c filing |url=https://corponline.dcra.dc.gov/ |archive-url=https://web.archive.org/web/20220627000000/https://corponline.dcra.dc.gov/ |archive-date=June 27, 2022 |access-date=June 27, 2022 |website=DC.gov}} [https://imgur.com/a/NaXd4TA Alt URL]{{Cite web |title=Charity Navigator |url=https://www.charitynavigator.org/server-error |access-date=2024-11-19 |website=www.charitynavigator.org}}{{Cite web |title=Join us on April 9 {{!}} Bitcoin Policy Summit |url=https://www.btcpolicysummit.org/ |access-date=2024-11-19 |website=DC Bitcoin Summit |language=en}}{{Cite web |date=2024-10-13 |title=Bitcoin Foundation - Company Profile - Tracxn |url=https://tracxn.com/d/companies/bitcoin-foundation/__NTr2R8Vc4nyREFhjaipTfIR-MpVq5AMboJtDoMDuNm0 |access-date=2024-11-19 |website=tracxn.com |language=en}}

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Category:Bitcoin organizations

Category:Non-profit organizations based in Washington, D.C.

Category:2012 establishments in the United States

Category:Organizations established in 2012

Category:501(c)(6) nonprofit organizations