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Some of the defendants (the developers of Bitcoin ABC now called eCash, an alternative cryptocurrency based on Bitcoin and its blockchain) had organized their d
by nullc 4y ago
Some of the defendants (the developers of Bitcoin ABC now called eCash, an alternative cryptocurrency based on Bitcoin and its blockchain) had organized their development under an LLC. Hasn't helped so far, though in the unlikely event that the case is ultimately lost it might help them constrain recovery of damages to the assets of the LLC.
I think in general structural improvement like that are most effective against 'honest' opponents-- someone whos goal is to win and recover their costs and damages. A legal structure that limits liability makes recovery less likely, so they don't bring the action at all.
For an opponent who's goal is to harass and ultimately crush the opposition, I think that kind of tool is probably less effective. It's also harder to justify doing when you're just following a volunteer passion over something speculative and worthless (as was the case of the Bitcoin related defendants-- almost all of whom started close to the beginning of Bitcoin).
[And as an aside: to the extent that development is done on an uncompensated purely voluntary basis, it would be difficulty to legitimize the LLC, e.g. little to no income or expenses or other documentation that the LLC is anything but a piece of paper.]
- MuffinFlavored 4y agoWhy can't the LLC just claim bankruptcy/claim it has no assets/make it so it has no assets to forfeit?
- nullc 4y agoIt (potentially) can. But this also follows along the answers "since you're not in the UK why not ignore it"-- if a court later decides to allow recovery of assets that came from the LLC or pierce the corporate veil entirely you're screwed-- at that point you lost your chance to defend yourself.