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SA venture capitalist lands Bitcoin Foundation hot seat

Admire Moyo
By Admire Moyo, ITWeb's news editor.
Johannesburg, 22 Jun 2016
Llew Classen comes to the helm at a time the Bitcoin Foundation is facing financial challenges.
Llew Classen comes to the helm at a time the Bitcoin Foundation is facing financial challenges.

South African venture capitalist Llew Claasen has been appointed as executive director of the Bitcoin Foundation, the oldest and largest Bitcoin advocacy group in the world.

Claasen was appointed to the new position this week during the Blockchain Training Conference, in Toronto, Canada. He will commence duties on 1 July.

The Bitcoin Foundation is an organisation dedicated to helping advance Bitcoin through advocacy, education and support of adoption and core development. It was founded in September 2012 with the stated mission to "standardise, protect and promote the use of Bitcoin cryptographic money for the benefit of users worldwide".

Darkest hour

However, Claasen comes to the hot seat when the Bitcoin Foundation is facing financial challenges, with some questioning the value of the advocacy group.

In a board meeting in December 2015, outgoing executive director Bruce Fenton revealed that additional funding was required to retain employees at the foundation. As of 30 November 2015, the foundation's total assets stood at $12 553.06. In 2014, the foundation had blown through 5 800 Bitcoins, resulting in a $4.6 million loss the same year.

Fenton underlines his tenure as director as a success, stating the foundation had "been through some very tough times, with its very future in doubt" when he took on the job. "It was perhaps its darkest hour. Today, as I leave, the foundation is at the best it's been in years, possibly ever.

"I'm thrilled that Llew was appointed to this role; we think his skillset is exactly what is needed now."

Last month, Fenton had informed the board of a desire to close out his term. He will remain as a board member. "The foundation is in a great position and in great hands. I look forward to supporting Llew however I can in this exciting new chapter."

Beyond financial trouble, two former Bitcoin Foundation board members have been charged with crimes. Mark Karpel`es, former CEO of Mt. Gox, was arrested in Tokyo and charged with embezzlement in September 2015. Charlie Shrem, former vice-chairman of the Bitcoin Foundation, resigned before pleading guilty to helping launder money for transactions through the illicit online marketplace Silk Road. He's currently serving two years in a federal prison.

Deep expertise

Claasen is a venture capitalist based in Cape Town and managing partner of Newtown Partners. He is a technology start-up go-to-market strategist with expertise in designing, building, merchandising and marketing online and mobile software products and services.

Newtown Partners was founded by Claasen and South African tech entrepreneur Vinny Lingham on the set of Dragons' Den South Africa season 1, which is also where the firm made its first investments.

The Bitcoin Foundation is an organisation dedicated to helping advance Bitcoin through advocacy.
The Bitcoin Foundation is an organisation dedicated to helping advance Bitcoin through advocacy.

"I'm looking forward to leading the Bitcoin Foundation going forward," said Claasen. "There is an amazing opportunity for the organisation to help the Bitcoin ecosystem. In the coming weeks, I'll be working closely with the board, membership, transition team and various stakeholders to create the best plan for success possible."

Foundation board member Lingham said: "I've known Llew for many years and have worked with him in several capacities. I think he will be a perfect fit for the organisation as we build on the significant progress we have made."

Due to his long business relationship and friendship with Claasen, Lingham recused himself from the board vote. The remainder of the board was present and voted unanimously to approve his appointment. The board also thanked Fenton for his work in adding transparency, financial controls and initiatives like DevCore.

Board chair Brock Pierce echoed Lingham's statements: "Llew's project management skills, geographic location and emerging markets experience are all huge advantages, and we are all very happy that he has accepted this position. The Bitcoin Foundation is in the best position it has been in since I joined, and we are just getting started."

Local ecosystem

In an interview with ITWeb, Claasen said SA is already doing a great job of working with Bitcoin, particularly through funded initiatives like the Alpha Code incubator, in Johannesburg, and the Barclays Techstars accelerator programme, in Cape Town.

"I hope that, through the Bitcoin Foundation, I will be able to get more African corporates in trust and assurance industries to fund these kinds of initiatives, which are crucial to local ecosystem development. I think that South Africa is adopting Bitcoin as quickly as any other tech cluster anywhere else in the world."

He noted the main challenge has been the early perception that Bitcoin is some kind of anonymous, archo-capitalist tool that regulators need to be scared of. "That's just not true and those negative perceptions are quickly changing among regulators and industry players in forward-thinking economies," he pointed out.

"Bitcoin is a revolutionary technology for transferring value as quickly and securely as the Internet transfers information today. It's an intellectual property gift made available to all of us and we should embrace it as evolutionary."

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