Bitcoin Foundation may be split in two organisations: Report

The Bitcoin Foundation, an organisation striving for the promotion of the cryptocurrency, is considering a split up into two separate bodies, as the dispute among its members over the functioning of the organisation has come to fore.

Bitcoin Magazine, citing an internal leaked document, reported that the foundation plans to divide itself into two entities – one to fund bitcoin's core development and another to promote the digital currency.

The internal document cites the many challenges that the foundation has faced, including reputational damage, declining membership and continued operating losses, according to the report.

The news comes as board member Olivier Janssens said in a controversial post that the foundation is "effectively bankrupt" and has axed most of its employees.

"The foundation has almost no money left, and just fired 90% of its people. Some will stay on as volunteers," Janssens, who was elected to the board in March, said in a forum post.

He also criticised the 2.5-year-old organisation for its lack of transparency, especially in financial matters, saying the foundation's "ridiculous spending and poorly thought out decisions" led to its current crisis.

"The Bitcoin Foundation hates transparency," he said. "If they would have been transparent then everyone would know there is no money left."

"Members have a right to know that the current board failed to tell them the truth, and that their way of running the organization resulted in it going bankrupt. But instead of taking responsibility, they want to find the next executive director that will come up with another magic plan," he added.

Janssens stressed that he will donate "several 100k" to a special trust fund for the support of the digital currency's core development.

In a response, Patrick Murck, the foundation's executive director, said it is not bankrupt, but it requires restructuring.

"Olivier basically jumped in front of our announcements on that and our annual report on the 2014 finances to be released next week, and he spun it very very negative," Murck said.

"The foundation isn't bankrupt, but the board needs to decide whether the responsible thing to do is to continue the organization with a much smaller organization and vision or to dissolve it," board member Gavin Adresen said in another response.

The Bitcoin Foundation was formed in 2012 by a number of bitcoin enthusiasts, including Mt. Gox's Mark Karpeles and Charlie Shrem. The latter is currently serving a prison sentence for supporting online black market Silk Road.

Check out the leaked document below: