Bitcoin Foundation in financial trouble

The Bitcoin Foundation is going through significant financial trouble, due to the loss $7 million these past two years. The executive director of the Bitcoin Foundation, Bruce Fenton began the Dec. 15 board meeting by calling for more funds, according to a report by Omaha World-Herald.

On Nov. 30, the group’s total assets were worth $12,553. Now the group is considering calling ex-members to ask for money, and Fenton is working on marketing materials to explain the purpose of the Bitcoin Foundation. Other members at the meeting were concerned that the Bitcoin Foundation was not offering enough value to its members.

The Bitcoin Foundation has had significant trouble in the past, with two of its board members charged with various crimes. Mark Karpeles, former CEO of Mt. Gox was charged with embezzlement in September and former Bitcoin Foundation vice chairman Charlie Shrem pleaded guilty to money laundering through the Silk Road.

“I don’t know if the foundation has a future,” said Gavin Andresen, Bitcoin Foundation chief scientist. “It is very difficult to regain trust once trust has been lost, and the illegal behavior of two of the foundation’s former board members destroyed a lot of trust.”

Recommended Posts