The foundation was established after Bitcoin had gained a reputation for criminality and fraud. In November 2013, general counsel Patrick Murck testified before a U.S. Senate committee on digital currencies, receiving a generally positive reception from lawmakers.
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. 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. In March 2014, the foundation hired Jim Harper of the
Cato Institute as global policy counsel and retained Amy Weiss as a media consultant. In July 2014, the foundation hired Thorsen French Advocacy as a lobbying firm. Libertarian Bitcoin activists criticized the organization’s increasing political engagement.
Board turmoil In May 2014, Bobby Lee (BTCC) and venture capitalist
Brock Pierce were appointed to the board. Ten members resigned due to longstanding allegations against Pierce. Another nine resigned after the May elections, citing dissatisfaction with the foundation’s direction.
Financial collapse and leadership changes In April 2015, Bruce Fenton became executive director. He was succeeded by Llew Claasen in July 2016. In July 2015, Olivier Janssens publicly revealed that the foundation was nearly insolvent, leading to staff layoffs. == Revocation of tax-exempt status ==