Core Developers Join MIT’s Digital Currency Initiative
Gavin Andresen and several prominent Bitcoin Core developers are joining the MIT Digital Currency Initiative. Until recently, the Bitcoin Foundation was the primary funder for Bitcoin Core development, but the foundation’s serious financial troubles left core developers without stable support.
Reports from former Bitcoin Foundation board member Olivier Janssens revealed that Core developers had stopped receiving paychecks. Janssens had offered temporary funding while a long-term solution was sought. That solution now appears to be the MIT Digital Currency Initiative, which will provide resources and institutional support for continued development.
Andresen emphasized that the MIT program will not direct development decisions—just as he said the Bitcoin Foundation never did. Still, some community members are concerned about the continued centralization of funding for Bitcoin Core development. Brian Forde, director of the MIT Digital Currency Initiative, told CoinDesk that he hopes additional institutions, including international universities, will join the effort.
“Our interest is not to make this a US-only effort. We’ve been reaching out to international universities to incorporate them.”
Alongside Andresen, Wladimir van der Laan and Cory Fields will also be affiliated with the MIT Digital Currency Initiative. The move aims to stabilize funding and provide academic support for ongoing Bitcoin Core work, while encouraging broader collaboration within the global research community.
Claims Process for Mt. Gox Customers Opens
If you lost funds in the Mt. Gox collapse, now is the time to file a claim. The court-appointed trustee for the Mt. Gox bankruptcy has opened a formal claims process, and the bitcoin exchange Kraken—tasked with assisting the trustee—is accepting claims from former Mt. Gox customers.
Customers should log into their Mt. Gox accounts to begin the claims process. As an alternative, claimants can log into Kraken and complete the required forms there. The deadline to submit claims is May 29th. During the process, customers can indicate whether they prefer a payout in Bitcoin or fiat currency.
Although payouts in Bitcoin have not been officially confirmed, the trustee is exploring that possibility. If approved, a Bitcoin payout would likely mark the first time a bankruptcy settlement is paid in a digital currency. Detailed instructions on how to file a claim are provided in the trustee’s official notice and related documentation.
Ripple Freezes Former Creator’s Account
One of the oft-cited advantages of digital currencies is reduced central control over users’ funds. For many, cryptocurrencies offer an alternative to traditional financial institutions that exert control over money. However, a recent dispute involving Ripple highlights that not all distributed-ledger systems are free from central authority.
Ripple, working together with gateway provider and exchange Bitstamp, temporarily froze over a million dollars’ worth of funds belonging to former Ripple co-founder Jed McCaleb. Ripple’s model differs from many cryptocurrencies: it relies on IOUs and gateways to represent currencies and other assets on its network. In this structure, gateways can exercise control over assets they issue or redeem, which enabled Bitstamp to lock McCaleb’s funds.
According to reporting, the dispute led to funds being frozen and later unfrozen, and Bitstamp has since expressed uncertainty about where the money should be directed. Bitstamp reportedly filed a lawsuit against the involved parties so a court can determine the rightful recipient. The outcome could set an important precedent for how legal disputes over gateway-held balances are resolved in the industry.
After leaving Ripple, Jed McCaleb founded Stellar, another cryptocurrency project. Reports indicate that some of McCaleb’s XRP holdings were used to fund Stellar’s development.