Ten people involved in overseeing the Bitcoin virtual currency have resigned from its controlling body.
The members resigned from the Bitcoin Foundation following the election of entrepreneur Brock Pierce to its board.
Some of those that resigned said their decision had been prompted by allegations about Mr Pierce's past behaviour that involved drugs and sexual misconduct.
Mr Pierce denied the allegations about his former behaviour.
Bitcoin is often referred to as a new kind of currency.
But it may be best to think of its units being virtual tokens rather than physical coins or notes.
However, like all currencies its value is determined by how much people are willing to exchange it for.
To process Bitcoin transactions, a procedure called "mining" must take place, which involves a computer solving a difficult mathematical problem with a 64-digit solution.
For each problem solved, one block of Bitcoins is processed. In addition the miner is rewarded with new Bitcoins.
This provides an incentive for people to provide computer processing power to solve the problems.
To compensate for the growing power of computer chips, the difficulty of the puzzles is adjusted to ensure a steady stream of about 3,600 new Bitcoins a day.
There are currently about 11 million Bitcoins in existence.
To receive a Bitcoin a user must have a Bitcoin address - a string of 27-34 letters and numbers - which acts as a kind of virtual post-box to and from which the bitcoins are sent.
"None of it is true," said Mr Pierce in a short video statement posted to the Bitcoin Foundation's discussion forum.
Vetting processThe accusations were made in 2000 when Mr Pierce, a former Disney child star, was involved with a web video company called Digital Entertainment Network that filed for bankruptcy.
The Bitcoin Foundation played down the resignations.
But some of those that resigned posted comments to the foundation's discussion forum explaining their decision.
"The track record of prominent Bitcoin Foundation members has been abysmal," wrote Patrick Alexander. "I no longer want to be associated with these people."
Places on the board of the foundation had opened up after two resignations. In January. developer Charlie Shrem stepped down after being arrested and charged with money laundering in connection with the Bitcoin firm he helped to run.
In addition, in February Mark Karpeles resigned as the exchange he founded, MtGox, stopped transferring bitcoins to external addresses while it investigated "unusual activity". The investigation revealed attackers had made off with millions of dollars of bitcoins and forced the shutdown of MtGox.
The resignations come as the Bitcoin Foundation holds its annual conference, which this year is taking place in Amsterdam.
Patrick Murck, chief lawyer for the Bitcoin Foundation, said the organisation had 1,500 members and would recover from the resignations.
"Democracy is messy sometimes," Mr Murck told Reuters. "If in the future members decide they want to have a vetting process, that's great."
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