Tulip Trading and its potentially atrophying effect on Crypto networks

Written by James Ramsden KC, Kings Counsel at Astraea Group

The Court of Appeal judgment on Friday 3rd February in the claim by Tulip Trading against sixteen developers alleged to “control” the Bitcoin network is a huge development for the sector. Legally the ruling is a very qualified one; it is merely to the effect that the claim by Tulip that the Developers owe fiduciary duties and duties of care amounts to “a serious issue to be tried” and should therefore go to a trial. But that understates its practical importance.

First, by recognising that these claims are not hopeless a period of nervous waiting now sets in and it could last years. We do not expect a trial before March 2024. It is almost inevitable that whoever loses will appeal. Most appeals to the Court of Appeal take between 9-12 months to resolve and then there is the prospect of a final appeal to the Supreme Court. That could add at least another 12 months. So we face the prospect of up to three years whilst we wait for legal certainty.

How do open source code writers react to this…