Bitcoin Foundation

Last updated
The Bitcoin Foundation, Inc.
FormationSeptember 2012
Registration no.46-1671796
Legal status501(c)(6) tax-exempt organization (revoked) [1]
HeadquartersWashington, D.C., U.S.

The Bitcoin Foundation was an American organization formerly registered as a nonprofit corporation. [2] [1]

Contents

It was founded in September 2012 to help restore the reputation of Bitcoin after several scandals and to promote its development and adoption. [3] The organization was modeled on the Linux Foundation and funded primarily through grants made by bitcoin-dependent companies. [4]

History

The foundation was established after Bitcoin had gained a reputation for criminality and fraud. [3] The founding chairman was Peter Vessenes. [3]

Former lead Bitcoin developer Gavin Andresen was hired as chief scientist. [4]

In June 2013, the foundation received a letter from the California Department of Financial Institutions ordering it to cease operating as an unlicensed money transmitter. [5]

In November 2013, general counsel Patrick Murck testified before a U.S. Senate committee on digital currencies, receiving a generally positive reception from lawmakers. [6]

2014 scandals and resignations

In January 2014, vice-chairman Charlie Shrem was arrested for aiding an unlicensed money-transmitting business linked to the Silk Road marketplace. He resigned and later pled guilty. [7] [8] [9]

In February 2014, Mark Karpelès, CEO of Mt. Gox, resigned after the exchange lost 750,000 customer bitcoins and went bankrupt. Executive chairman Peter Vessenes’ business ties to Karpelès were criticized. [10]

In March 2014, the foundation hired Jim Harper of the Cato Institute as global policy counsel and retained Amy Weiss as a media consultant. [11]

In July 2014, the foundation hired Thorsen French Advocacy as a lobbying firm. [12] Libertarian Bitcoin activists criticized the organization’s increasing political engagement. [13]

Board turmoil

In May 2014, Bobby Lee (BTCC) and venture capitalist Brock Pierce were appointed to the board. [14]

Ten members resigned due to longstanding allegations against Pierce. [15] Another nine resigned after the May elections, citing dissatisfaction with the foundation’s direction. [16]

Financial collapse and leadership changes

In April 2015, Bruce Fenton became executive director. [17] He was succeeded by Llew Claasen in July 2016. [18]

In July 2015, Olivier Janssens publicly revealed that the foundation was nearly insolvent, leading to staff layoffs. [19]

Revocation of tax-exempt status

The Bitcoin Foundation’s 501(c)(6) status was officially revoked by the IRS on 15 May 2022. [1]

References

  1. 1 2 3 "BITCOIN FOUNDATION". IRS Tax-Exempt Organization Search. 8 August 2022. Archived from the original on 15 January 2023. Retrieved 14 January 2023.
  2. ↑ "The Bitcoin Foundation Official 501-c Filing". DC.gov. Archived from the original on 27 June 2022. Retrieved 27 June 2022. Alt URL
  3. 1 2 3 Beaumont, Peter (3 October 2012). "Bitcoin Foundation hopes to revive reputation of online currency". The Guardian.
  4. 1 2 Bustillos, Maria (2 April 2013). "The bitcoin boom". The New Yorker.
  5. ↑ McMillan, Robert (24 June 2013). "California says the Bitcoin Foundation is a money-transferrer". Wired.
  6. ↑ Lee, Timothy (23 November 2013). "For Bitcoin, a successful charm offensive on the Hill". The Washington Post. Retrieved 24 November 2013.
  7. ↑ Jerving, Sara (6 September 2014). "Bitcoin Promoter Charles Shrem Pleads Guilty". The Wall Street Journal.
  8. ↑ Hill, Kashmir (27 January 2014). "Winklevosses, Bitcoin Community Shocked By Arrest of BitInstant CEO Charlie Shrem". Forbes.
  9. ↑ Jeffires, Adrianne (28 January 2014). "Charlie Shrem resigns from the Bitcoin Foundation after arrest". The Verge.
  10. ↑ Tiku, Nitasha (7 March 2014). "Whistleblower Threatens to Expose Corruption at Bitcoin Foundation". Valleywag. Archived from the original on 17 May 2014.
  11. ↑ Sidel, Robin (11 March 2014). "Bitcoin Foundation to Ramp Up Lobbying Efforts". The Wall Street Journal.
  12. ↑ Wilhelm, Alex (9 July 2014). "Bitcoin Foundation Hires Lobbying Group To Take The Cryptocurrency To Washington". TechCrunch.
  13. ↑ Neal, Meghan (12 May 2014). "Bitcoin is Hiring Lobbyists". Motherboard.
  14. ↑ "Bitcoin Board Welcomes Two New Members". PYMNTS. 11 May 2014.
  15. ↑ Menn, Joseph (16 May 2014). "Bitcoin Foundation hit by resignations over new director". Reuters.
  16. ↑ "Bitcoin Foundation hit by resignations over new director". Reuters. 16 May 2014.
  17. ↑ "The Bitcoin Foundation Welcomes Bruce Fenton as Executive Director". Bitcoin Foundation. 13 April 2015. Archived from the original on 10 May 2015.
  18. ↑ "Bitcoin Foundation Appoints Llew Claasen as Executive Director". Archived from the original on 24 July 2016.
  19. ↑ Pick, Leon (4 July 2015). "Olivier Janssens: Bitcoin Foundation Has No Money Left". Finance Magnates.
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