Jeremy Rubin '12 in Legal Battle over Bitcoin Code

Current Massachusetts Institute of Technology (MIT) student Jeremy Rubin ‘12 is currently facing a subpoena issued by the New Jersey Division of Consumer Affairs. The subpoena was a response to Rubin and fellow MIT students’ creation of Tidbit, a Bitcoin mining code, which received a “most innovative” award at a recent hackathon. The state believes that by granting browser access to companies, it may violate consumer rights.Bitcoin is a decentralized and revolutionary online currency with many notable investors, and it has been gaining traction in the public eye. Bitcoins can be generated by anyone who runs a Bitcoin miner on their computer. However, only 21 million Bitcoins will ever be created, so they are becoming increasingly difficult to generate. Currently, one Bitcoin (BTC) is worth about $622, up from less than $20 in 2012.Tidbit provides websites with a Bitcoin-related revenue generator, which benefits both the viewer and the site’s owner. It was created by Rubin, Kevin King, Oliver Song and Carolyn Zhang as a part of the 48 hour Node Knockout Hackathon in November of 2013. Tidbit gives websites the option of gaining access to a viewer’s computer through their browser. It allows the website to mine for Bitcoins on the viewer’s computer, in exchange for an ad-free experience.Tidbit won the Innovation prize, and was on the track to becoming accessible for use when the subpoena was issued. The Division of Consumer Affairs in New Jersey demanded that Rubin hand over the source code for the program, documents related to Tidbit, and any agreements. They also requested access to a list of websites using Tidbit and all names of users.Rubin and fellow creators were interrupted during the finals testing period in December when the subpoena was first served. While it is not a criminal accusation, it could lead to legal penalties for Rubin.The team believes that the subpoena, which some view as unconstitutional, plans to fight back. “I think what was hardest is that I, and perhaps most MIT students, just want to build, make and tinker towards a better future,” Rubin told VentureBeat Magazine.Rubin and Tidbit’s other creators had planned to launch use this month, but the subpoena has halted advances. However, Tidbit’s source code is not ready to be used for mining, is not of much worth, and would not provide the information on Bitcoin they might be looking for. Rubin sought the help of the Electronic Frontier Foundation (EFF), a technology law nonprofit, for legal support. The group responded positively, and are helping Rubin through the process.The EFF has made three core points which they feel will win them the case. Firstly, they plan to argue that New Jersey cannot use their state laws to prohibit and control Internet activity out of their state, and by doing so are violating the Dormant Commerce Clause. There is no activity of Tidbit within New Jersey; it was created in Massachusetts and has not yet been used.Also, Rubin has never lived in New Jersey, and the source code for Tidbit is not stored there. Therefore, New Jersey cannot exercise jurisdiction over Tidbit or its creators, as it is out of their geographical bounds.The EFF also believes that if the subpoena must stand, Rubin should be granted immunity from prosecution for anything he may hand over to them. According to EFF, the prosecution seems especially unprecedented due to the fact that Tidbit was not in use, and wasn’t ready for it when the subpoena was issued. Furthermore, there were no user IP addresses or names to hand over for the same reason. Finally, no one has ever used the code or program itself to mine Bitcoin or any other currency.