Where did all the Bitcoin Foundation’s money go?

     In an open letter-style article titled “Bitcoin Foundation: Where Did All the Money Go?” Bitcoin Foundation President Bruce Fenton responded to recent questions and calls for a comprehensive audit of the Bitcoin community.

     The foundation had managed to raise around 5,800 bitcoins, equivalent to $3.9 million at the time, in 2014. However, those funds have all dried up as many in the community felt there was a lack of transparency and accountability.

     Fenton said the organization had lost most of its bitcoins due to “ridiculously wasteful and reckless” spending, developer salaries and a drop in bitcoin prices.

     "I do not maintain these finances and I certainly will not apologize for them or try to justify them. I have no part in these decisions," he wrote.

     According to him, the organization under its previous leadership spent more than $1 million hosting Bitcoin 2014 in Amsterdam and paying Apple fundraising consultants and THE POLICY COUNCILCOM, the organization that served as the foundation’s global policy committee for nine months in 2014. The Amsterdam event was not interrupted and there may even be huge losses.

     The Bitcoin Foundation also spent nearly $540,000 on the salaries of former executive director Jon Matonis, current executive director Patrick Murck, chief operating officer Jodie Brady, and chief scientist Gavin Andresen.

     Due to their monthly expenses, which totaled over $150,000, and the significant drop in Bitcoin prices in 2014, the Foundation spent 5,800 Bitcoins, which are currently worth over $2.5 million.

     Regarding this potential audit topic, Fenton said, “I am happy to support the audit to the person who can lead and do this work and/or support a cost audit.” He also offered a 10% bonus to “anyone who provides information and evidence leading to the recovery of any funds that were misappropriated or stolen.”

On December 22, the foundation announced that the organization would begin 2016 with a new mission statement and a reorganized team to recover from the staggering financial losses of the past few years. Currently, Fenton and other board members are exploring ways to fully audit and clarify its financial issues. However, Fenton could not provide the formal financial documents needed to fully understand the organization's budget deficit.

     “A lot of people think that the change in management and new focus, combined with the new mission statement could help the organization help bitcoin more. I hope the foundation won’t have so many problems. I think it’s a worthwhile endeavor to help the organization,” Fenton added.

     This year, the Bitcoin Foundation will significantly reduce its expenses to eliminate salaries for its board members. By more responsibly organizing its budget and financial controls, Fenton and the new board hope to rebuild the foundation as the leading nonprofit organization in the bitcoin industry.