Craig Wright Might Lose Half of his Bitcoin Funds to Kleiman Estate

But that is not a fact yet. That is a puzzle we will have to wait to uncover with time. In the meantime, the elusive myth of Satoshi Nakamoto will continue …
Craig Wright Claims his Bitcoin Inventor

The year long battle between the two supposed brains behind the world largest cryptocurrency, Bitcoin(BTC)trade, might have reached its end already. The presiding judge Judge Bruce E. Reinhart, on Tuesday, gave his final ruling on the case, compelling the self-proclaimed Bitcoin founder Craig Wright to give up half of his Bitcoin wealth to his late partner’s estate, David Kleiman.

You will recall that the court already found Wright’s testimony as unreliable following a series of inconsistent evidence and testimonies. I guess it is a no brainer declaring David Kleiman’s estate the winner of the case. According to the judge’s ruling, Mr. Wright will give up half of all his wealth before December 2013, seeing that his partner died in 2013.

In addition to that, the Australian scientist will have to give up half of his intellectual properties before the end of the year 2013. Should his story of being the inventor of Bitcoin turn out true then the court ruling automatically makes Kleiman a part of the Nakamoto pseudonym.

Filed about a year ago, the estate of late David Kleiman believes that the self-proclaimed Bitcoin inventor must have defrauded them of over a million Bitcoins that rightly belong to David Kleiman due to his partnership with Mr. Wright before his death.

Although Mr. Wright has contested the claim from the beginning, he has failed to produce a convincing evidence that his claims are right. In fact, Judge Beth Bloom of the Florida federal court found him ‘not credible’ after several inconsistencies in his testimonies and documents.

While that may mean that his stand in the case is false, it fails to tell exactly if he is the real founder of Bitcoin or by any means related to the pseudonym.

Who Is Satoshi?

From the onset of the case, the people of the crypto sphere and other members of the public have been of hope that the case may finally reveal whether or not Mr. Wright is the Nakamoto we all seek or, as it is much more probable, there is another out there. So far, the court is yet to determine the credibility of the statement.

From the look of things, however, it is pointing to the direction that Wright is most likely not the real Satoshi in spite of his dogged persistence to prove otherwise. But that is not a fact yet. That is a puzzle we will have to wait to uncover with time.

In the meantime, the elusive myth of Satoshi Nakamoto will continue to grow.

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Craig Wright Faces Further Allegations of Document Falsification in Kleiman Case

This would not be first time Wright – who claims to be Bitcoin inventor Satoshi Nakamoto – has been accused of falsifying documents in the trail, …

Further allegations of falsified messages and documents are likely to arise in the Craig Wright bitcoin trial after pre-trial testimony surfaced in a court document this week.

Jonathan Warren, the developer of the decentralized peer-to-peer messaging system, testified in a pre-trial examination in the ongoing Kleiman vs Wright lawsuit, in which the estate of the late David Kleiman – former business partner of Wright – claims it was defrauded out of around $5 billion of bitcoin.

Warren spoke of his role in developing Bitmessage and speculated on the possibility that Wright and Kleiman would have had access to the messaging software before it was released.

Forged Document Allegations

The document also reveals allegations from Warren, that messages relating to the formation of the Tulip Trust – the fund that allegedly holds the bitcoin at the centre of the fraud accusations – could have been forged.

Warren was questioned about Bitmessages dated between November 6 and 13, 2012 that had subject titles such as “The trust process”, “Regarding the trust process”, and “1933”, he confirmed that the Bitmessage protocol was not released until November 19 and that these messages were likely “faked”.

This would not be first time Wright – who claims to be Bitcoin inventor Satoshi Nakamoto – has been accused of falsifying documents in the trail, currently being heard in a South Florida District Court.

In early July, after being late in presenting a number of documents requested by the court, Wright was accused by trial lawyer Stephen Palley of fabricating some of the exhibits.

One document dated October 23, 2012 said that Wright and Kleiman had acted in mutual trust to “form a partnership in order to best exploit and utilise their joint assets”. In examination of the document’s metadata, however, the font used showed an updated copyright for 2015.

a purported 2012 trust doc with font files copyrighted 2015 pic.twitter.com/Gi66glsESh

— Palley (@stephendpalley) July 3, 2019

Cross Examination

Under cross examination by Wright’s defence counsel Warren was accused of putting forward misleading testimony that he had not sought help in developing the Bitmessage code.

Meanwhile, Warren’s claim that he had not known of Wright prior to Wright’s public claim to be Satoshi in 2016 was also questioned when it was revealed Warren had been in communication with Wright about an audit of Bitmessage in November 2014.

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Expert Witness in Satoshi Case Claims Dr Wright’s Documents Were Doctored

Since December 2015, the crypto community has endured Wright’s repeated claims to be Satoshi Nakamoto. However, nearly every claim and every …

The Kleiman v. Wright case continues this week and a slew of new evidence has been submitted to the Southern District of Florida courthouse. A supplemental affidavit stemming from the Kleiman estate’s expert witness, Dr. Matthew Edman, indicates that documents submitted to the court as evidence were “modified” and “backdated.”

Also Read: Bitcoin Cash Scaling Benchmarks, Brewdog, and Rising Transaction Volume

Plaintiff’s Analysis of Documents Shows David Kleiman’s PGP Signature Was Created Almost a Year After He Died

A transcript of an affidavit was recently submitted to the Kleiman v. Wright (9:18-cv-80176) court case, which shows that an expert witness found many flaws within certain documents filed in the case. The billion-dollar bitcoin lawsuit is one of the most high profile court cases in the U.S. because it involves 1 million BTC and self-proclaimed ‘Bitcoin inventor’ Craig Wright. Since December 2015, the crypto community has endured Wright’s repeated claims to be Satoshi Nakamoto. However, nearly every claim and every so-called proof Wright has provided has been debunked by researchers, cryptographers, and the greater crypto community. Many of the refutations against Wright’s story accuse him of providing backdated documents and proofs that have been modified at a later date. From the very beginning of Wright’s entrance into the community, his story has been suspected of being a falsified tale or hoax. On December 9, 2015, Vice reporter Sarah Jeong detailed that the “PGP keys referenced in stories naming Craig Wright as the creator of Bitcoin were probably falsely backdated.”

Expert Witness in Satoshi Case Claims Dr Wright's Documents Were Doctored
The set of keys that were reportedly “backdated and point to a hoax” according to Vice reporter Sarah Jeong, Motherboard staff writer Jordan Pearson, and Bitcoin Core developer Greg Maxwell.

Fast forward to today and Craig Wright is being sued by Ira Kleiman, the brother of the now deceased David Kleiman, for allegedly interfering with David’s bitcoin assets and intellectual property after he died. The first filing shows the value of the assets the Kleiman family thinks David was screwed out of is around $5.1 billion before punitive or treble damages. This week, an affidavit was submitted to the court that shows the testimony of the Kleiman estate’s witness, Dr. Matthew Edman, a cryptography expert.

As other have mentioned, Bitmessage wasn’t even publicly available until November 12th 2012. Furthermore, the only visible address is a v4 address (as it begins with 2c) and those didn’t even exist until about mid-2013.

— Peter Šurda (@PeterSurda) July 4, 2019

According to Edman’s resume submitted to the court, he has a deep knowledge of digital forensics, applied cryptography, Shamir’s Secret Sharing Scheme, and cryptocurrencies. Edman’s testimony examines an email that was submitted to the court as “Exhibit A.” Edman declares under penalty of perjury that he believes Exhibit A was likely created from an email Wright sent to himself on or about April 16, 2014. The document was then “converted to a PDF and modified to appear to have been sent from ‘Dave Kleiman’ to Uyen Nguyen on or about December 20, 2012.” The expert’s testimony further states:

I also determined that Exhibit A contained a PGP signature allegedly created by Dave Kleiman on or about March 12, 2014 – almost a year after he died.

Expert Witness in Satoshi Case Claims Dr Wright's Documents Were Doctored

A Trend of Modifications

Edman states that he analyzed Exhibit A previously and further analysis and forensic artifacts contained within the PDF itself bolster his opinion. The digital forensics expert said that he also examined “Exhibit F” and concluded that the document was “created by further modifying Exhibit A to make it appear as if Exhibit F is actually a separate email sent from Dave Kleiman to Uyen Nguyen.” “In my opinion, it is simply another revision to the PDF created from an email the defendant sent to himself on or about April 16, 2014,” Edman emphasized in his testimony. The witness’s affidavit declares that both Exhibit A and Exhibit F appear to be emails sent from David to Uyen Nguyen back in 2012, but “manipulations of a PDF created from an email” indicate that Wright sent it to himself in the spring of 2014. Edman noted that he understands that Exhibit A was withdrawn from the court because Wright could not “verify the date of that email exchange,” but to his knowledge Exhibit F was not withdrawn.

Expert Witness in Satoshi Case Claims Dr Wright's Documents Were Doctored

Edman goes on to explain that the metadata tied to the first exhibit’s PDF shows that it was created on or about April 17, 2014. The creator used the Acrobat PDF Maker 11 for Microsoft Outlook and Edman highlights that the computer’s time zone was consistent with Sydney, Australia (UTC+10) and then modified again five minutes later. Further analysis of the internal contents and structure of the document identified specific portions of the PDF were edited and revised. He further determined that Exhibit F was also comprised of modifications to the date field and revisions to the body of the document as well. Speaking on Exhibit A’s analysis Kleiman’s expert witness explained:

I identified a “TouchUp_TextEdit” marked-content point in the PDF file associated with Exhibit A which indicated that the text associated with the “From:”, “To:”, and “Date:” fields at the top of Exhibit A were edited.

Expert Witness in Satoshi Case Claims Dr Wright's Documents Were Doctored

The crypto community has not been kind about the latest documents and Edman’s affidavit has been shared widely across social media mocking Wright. The attorney Stephen Palley who often comments on cryptocurrency related lawsuits stated “you can’t really attack [Edman’s] credentials and the analysis looks sound.” “You have to show an alternative explanation — they should settle,” Palley added. The public will still hear from Wright’s expert witnesses which include Brett Roberson, Kevin Madura, and Nchain’s CTO Steve Shadders.

Expert Witness in Satoshi Case Claims Dr Wright's Documents Were Doctored

In addition to the court case drama last week, news.Bitcoin.com reported that Martti Malmi said on Twitter that he might take action against Wright for accusing him of starting the “Silk Road, Hydra and a number of other darker websites.” “Taking a closer look to the transcript, Craig Wright is accusing me and Theymos of soliciting drug trade, assassinations, terrorism and child porn — That is too much to be ignored,” Malmi told the public. Following the accusations against Malmi, the owner of Bitcointalk.org, Theymos, also refuted Wright’s court claims against him stemming from the June 28 transcript. “I was made a forum admin in 2011 after Satoshi left,” Theymos insisted.

“I never had any interaction with CSW — CSW’s whole shtick is to just lie constantly,” the forum moderator conceded. “He’s so brazen about it that some people think, ‘there must be some truth there,’ but really it’s 100% nonsense.”

What do you think about the Kleiman v. Wright lawsuit involving billions of dollars worth of bitcoin? Let us know what you think about this subject in the comments section below.


Image credits: Shutterstock, Courtlistener, Twitter, Florida Case Kleiman v. Wright (9:18-cv-80176), Vice, and Pixabay.


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Craig Wright admits not having access to Satoshi Nakamoto’s Bitcoin wallets in court

Wright has maintained that he is, in fact, Satoshi Nakamoto. However, this claim faces widespread criticism as Wright has been unable to produce any …

The self-proclaimed “Bitcoin founder” Craig Wright recently appeared in court, in the ongoing case between Wright and his late companion David Kleiman’s estate. Perhaps most notably, the hearing saw Wright admit to not having access to his alleged Bitcoin fortune. A recent Bloomberg article covers all of the details of this affair.

Craig Wright admits not having access to Satoshi Nakamoto’s Bitcoin wallets in court

Wright stands accused over stealing hundreds of thousands of Bitcoin, supposedly worth over $5 billion, following Kleiman’s death in 2013. Nevertheless, the court case could potentially shed some light on the anonymous founder of Bitcoin, Satoshi Nakamoto.

Wright has maintained that he is, in fact, Satoshi Nakamoto. However, this claim faces widespread criticism as Wright has been unable to produce any compelling evidence. Critics urge Wright to verify his identity through transferring coins attributed to Nakamoto – which Wright has so far failed to do.

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The court session may have revealed the reason behind this. According to Wright, he does not have access to the digital wallets holding the funds. Wright claims to have handed over a “key piece of information” to Kleiman before the latter’s death.

Furthermore, lacking this “key information” reportedly means Wright may never be able to access the coins. However, Wright claims that this is fine by him – as he considers the roughly $10 billion worth of Bitcoin attributed to Satoshi Nakamoto “too much money”.

Wright claims to have recruited David Kleiman in order to distance himself from Bitcoin

According to Wright, he first sought to distance himself from Bitcoin in 2010. Specifically, Wright reportedly did not agree with the direction that Bitcoin had taken. Moreover, Wright supposedly held concerns over that Bitcoin was increasingly used for criminal ends, such as trading drugs.

“I created Bitcoin to be the FIRST digital cash system NOT connected to crime. The Silk Road was made for the sale of heroin, MDMA, Fentanyl, weapons then a reputation system was developed for assassination markets and for terrorism.”

Emotions also reportedly ran high during the court session. The Twitter account “22nd Century Crypto” reports that Wright began crying when discussing the dark web marketplace Silk Road. Nevertheless, Wright said that 2010 was around the time he brought in David Kleiman in an attempt to cover up his own involvement with Bitcoin.

“I brought in Dave because he was a friend and he knew who I was and he was a forensic expert, and I wanted to wipe everything I had to do with Bitcoin from the public record.”

In addition to this, Wright also reportedly threw a document at one point during the court session. In response to this, the judge supposedly remarked that Wright would be “in handcuffs” if he repeated the action.

Wright was also criticized for failing to answer some of the questions. Moreover, he also argued with his own legal counsel, and was unfamiliar with some of the documents presented by his own team.

Image Source: Flickr

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Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.

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Craig Wright May be Held in ‘Contempt of Court’

In the latest court saga of self-proclaimed Satoshi Nakamoto, Craig Wright V/s the estate of David Kleiman, it appears that the former may be liable to …
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In the latest court saga of self-proclaimed Satoshi Nakamoto, Craig Wright V/s the estate of David Kleiman, it appears that the former may be liable to be held in contempt of court.

This development came about, when the legal counsel for a plaintiff in the bitcoin (BTC) theft case said that Wright had failed to disclose his bitcoin holdings as a per court order, news portal CoinTelegraph said.

Last week, Crypto-News India had reported that a mediator’s report said that there was no conclusion to the meeting. The report said, “This case did not settle at the mediation. As a result, we are at an impasse.”

Though legally, the matter remains in a stalemate, Calvin Ayre tweeted about the mediation moments after it ended. The conference occurred one day after a judge sealed evidence that Wright was ordered to produce over his claims that he’s Satoshi Nakamoto. In the tweet, Ayre said, “Craig just finished his settlement conference in Miami…Craig is in the U.S. and is intent on regaining control over his legacy as Satoshi in that country.”

The support of a friend is worth more than gold, but interestingly, the US Copyright Office had begged to differ. Last month, the USC had said, that it would neither investigate if the claims were true and nor would it put forth any opposition, the likes of which are usually put forward by the Patent and Trademark Office for patents and trademark registrations.

It had said, “As a general rule, when the Copyright Office receives an application for registration, the claimant certifies as to the truth of the statements made in the submitted materials. The Copyright Office does not investigate the truth of any statement made.”

Last month, a United States District Court of the Southern District of Florida had issued an order on May 3, which compelled Wright to produce a list of his bitcoin public addresses. The order was brought about when the estate of computer scientist, David Kleiman filed a case against Wright, accusing the latter of stealing hundreds of thousands of BTC, which were more than $5 billion dollars in February last year.

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