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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Class action threat against Bitcoin SV for ‘defrauding’ supporters

However, there’s no indication the Judge actually believes any of the representations Wright has made including that Wright is Satoshi Nakamoto OR …

A British podcaster has proposed a class action lawsuit against Bitcoin Satoshi Vision for falsely claiming Satoshi’s endorsement.

In the wake of the stunning – but hypothetical at this stage – $5 billion judgment against Dr Craig “Satoshi” Wright, British podcaster Peter McCormack has proposed a class action lawsuit against Wright’s Bitcoin SV.

British podcaster Peter McCormack

McCormack, who is currently fighting a defamation battle against Craig Wright for calling him a “fraud”, said he will propose a class action lawsuit to his legal team for those who bought Bitcoin SV under the impression Wright is Satoshi Nakamoto and felt ‘defrauded’.

“I am thinking that a class action lawsuit would only be right for falsely claiming a technology is Satoshi’s Vision when CSW is not Satoshi,” he Tweeted this morning.

“This has affected a lot of people. I’ll be talking to both my US lawyers and those who have been defrauded.

“Let’s Wright this Wrong.”

50% of nothing is still nothing

Despite Judge Reinhart finding Craig Wright had lied, potentially falsified documents, and concocted a frankly “inconceivable” story about the whereabouts of more than one million Bitcoin – he nevertheless ruled the Kleiman family was entitled to 50% of the hypothetical stash.

(Wright is being sued by Ira Kleiman – bother of Wright’s late business partner Dave – for attempting to appropriate more than a million BTC held in a family trust).

Craig Wright

However, there’s no indication the Judge actually believes any of the representations Wright has made including that Wright is Satoshi Nakamoto OR ever had access to the coins in question.

In fact, the Judge doesn’t even believe the ‘Tulip Trust’ – in which the coins are supposedly held – exists.

“The totality of the evidence in the record does not substantiate that the Tulip Trust exists,” said Judge Reinhart. “Wright’s testimony that this trust exists was intentionally false”

In fact, there’s plenty of evidence cited in the case that suggests Wright simply copied a bunch of wallet addresses from the blockchain that had made large transactions and claimed them as his own or Kleiman’s.

If Wright doesn’t have any coins, and never did, it would make his pronouncements that $2 billion of Bitcoin would need to be dumped to pay estate tax completely hollow.

Bitcoin SV holds up remarkably well

Bitcoin SV has held up remarkably well given the judgment – which Bitcoin SV booster Calvin Ayre claimed vindicated Wright as Satoshi and proved he had access to the Satoshi stash.

It’s currently got a $2.25 billion market cap.

Class action has supporters, but also doubts it could succeed

Plenty of followers were on board with the class action proposal including The Crypto Monk and Bitcoin Podcast host Joe Blackburn.

However, McCormack is likely to face a few hurdles with his class action.

As Jameson Lopp, creator of Statoshi and CTO at Casa pointed out, Wright didn’t call Bitcoin SV ‘Satoshi’s Vision’ but rather “Satoshi Vision’ “which could mean any number of things.

“Craig’s 5D chess is already way ahead of you”

Sorry but Craig’s 5D chess is already way ahead of you. He didn’t call it “Satoshi’s Vision” but rather just “Satoshi Vision” which could mean any number of things.

— Jameson Lopp (@lopp) August 28, 2019

And of course, McCormack first needs to win his own case against Wright – though that’s looking more likely after a UK judge dismissed Wright’s similar defamation case against Bitcoin Cash’s Roger Ver on the grounds it was ‘weak’ and ‘inappropriate’.

$10,000 bet Wright won’t move Satoshi coins

McCormack is also offering a $10,000 bet to any Bitcoin SV booster, that Wright won’t move any of the Satoshi coins within the space of a year – and offered 2-1 odds saying they could put up $5,000 as their stake.

Open bet available for any $BSV CSW cultist of the belief that Craig has the Satoshi coins.

I’ll put up $10k that none of these coins will be moved by CSW within a year, I’ll even offer you 2-1 odds, so $5k for you.

Money locked in escrow, paid out 1 year today.

— Peter McCormack (@PeterMcCormack) August 28, 2019

In a strange bit of timing, Craig Wright released a book yesterday called The Art of Bitcoin AND a new promotional campaign began for another book called Behind The Mask: Craig Wright and the Battle for Bitcoin by journalists Byron Kaye and Jeremy Wagstaff.

Ayre claimed the book would receive heavy promotion when Wright moves the coins out of the Tulip Trust.

“They started promoting the book that will have the background of Craig creating #Bitcoin. It’s nice timing to be out at the same time as Craig gets the Satoshi coins out of Tulip Trust. Also good timing with Judge just ruling Craig is Satoshi.”

they started promoting the book that will have the back ground of Craig creating #Bitcoin. Its nice timing to be out at the same time as Craig gets the Satoshi coins out of tulip trust. Also good timing with Judge just ruling Craig is Satoshi.https://t.co/55vZgvDDUk

— Calvin Ayre (@CalvinAyre) August 28, 2019

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Judge savages self-proclaimed bitcoin inventor Craig Wright

Ethereum creator Vitalik Buterin labeled Wright a “fraud” last year. Of course, another possibility is that Wright isn’t Nakamoto but did mine some …
Craig Wright, right, arrives at federal court in West Palm Beach, Florida, on June 28, 2019.
Enlarge/ Craig Wright, right, arrives at federal court in West Palm Beach, Florida, on June 28, 2019.
Saul Martinez/Bloomberg via Getty Images

Australian Internet personality Craig Wright claims he is bitcoin inventor Satoshi Nakamoto. A lot of people don’t believe him. But one person who does believe him is Ira Kleiman, the brother of deceased technologist Dave Kleiman. According to possibly forged emails published by Gizmodo in 2015, Wright and Kleiman worked together to develop and launch bitcoin in 2008 and 2009.

Those documents suggested that Wright and Kleiman collaborated to mine hundreds of thousands of bitcoins in 2009 and 2010. That would make Ira Kleiman the heir to a multibillion-dollar fortune. So last year, Kleiman sued Wright, seeking his share of the Nakamoto bitcoins.

Kleiman and Wright have been battling in a Florida courtroom ever since. In a Tuesday ruling, federal Magistrate Judge Bruce Reinhart savaged Wright for repeatedly misleading the court and generally wasting everyone’s time.

Wright claims that after drug dealers and human traffickers started using bitcoin, Wright got spooked and decided to dissociate himself from the cryptocurrency. He created a legal entity called the Tulip Trust, with him and Dave Kleiman as trustees. Then he encrypted the keys to his bitcoin holdings using an encryption scheme that required multiple keys to unscramble the data. With Kleiman dead, Wright claims he can no longer unscramble the file.

Judge Reinhart isn’t buying it.

“Dr. Wright’s demeanor did not impress me as someone who was telling the truth,” the judge wrote. “I completely reject Dr. Wright’s testimony about the alleged Tulip Trust, the alleged encrypted file, and his alleged inability to identify his bitcoin holdings.” Indeed, Reinhart concluded that “Wright’s testimony that this trust exists was intentionally false.”

“Dr. Wright’s story not only was not supported by other evidence in the record, it defies common sense and real-life experience,” the judge added. More generally, Reinhart found that Wright’s “non-compliance with the court’s orders is willful and in bad faith.”

The judge invited Kleiman to submit a request for attorney’s fees in the case. And crucially, he ruled that any bitcoins Wright mined prior to 2013 were the joint property of Wright and Kleiman.

The judge didn’t decide whether Wright is Satoshi

The entire case has an air of unreality because Reinhart’s ruling doesn’t address the most important question: do the bitcoins exist at all?

Bitcoins were easy to mine in cryptocurrency’s early years. Forensic analysis indicates that more than 1 million bitcoins were mined in 2009 and 2010 and haven’t been moved since then. These bitcoins are now worth around $10 billion. It’s widely assumed that many of these bitcoins belong to bitcoin creator Satoshi Nakamoto. Kleiman’s lawsuit is based on the assumption that Wright is Nakamoto and controls those bitcoins.

But if Wright isn’t Nakamoto, then there’s no reason to think Wright has a million bitcoins—or anything close to that figure. Kleiman and Wright might be fighting a legal battle over bitcoins that don’t exist.

But Tuesday’s ruling doesn’t address this issue. “The court is not required to decide, and does not decide, whether defendant Dr. Craig Wright is Sata[o]shi Nakamoto, the inventor of the bitcoin cybercurrency,” Reinhart wrote.

There’s a lot of reason to doubt Wright’s claim to Nakamoto’s mantle. Key pieces of evidence linking Wright to Nakamoto appear to have been forged years after the fact. More importantly, if Wright wanted to prove that he is Nakamoto, he could do it quite easily by producing a cryptographic signature using a private key associated with Nakamoto’s identity. Wright has ducked repeated challenges to do this.

Ethereum creator Vitalik Buterin labeled Wright a “fraud” last year.

Of course, another possibility is that Wright isn’t Nakamoto but did mine some bitcoins in the early years of the cryptocurrency—either with Kleiman or on his own.

In any event, Reinhart’s Tuesday ruling doesn’t end the case—far from it. Wright will be given yet another opportunity to produce information about his bitcoin holdings. If he can’t do so—and can’t convince the judge that he’s incapable of doing so—he could face more serious consequences, including a finding of contempt. On the other hand, if Wright does produce a credible record of his bitcoin holdings, the case will proceed to a legal fight over how much of Wright’s fortune properly belongs to the Kleiman estate.

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Craig Wright to Surrender Half of His Bitcoin Holdings

Wright, who claims to be Bitcoin proponent Satoshi Nakamoto, has always been rather infamous in the crypto space. However, his current legal …

The legal battle between Australian computer scientist and Bitcoin Cash proponent Craig Wright and the estate of his former business partner David Kleiman has gotten to boiling point and Wright could be set to take a rather significant blow.

According to multiple sources, Wright has been ordered by a judge to turn over half of all his intellectual property and Bitcoin holdings to the estate of Kleiman. Sources cited an unreleased ruling filed by Magistrate Court Judge Bruce Reinhart, who ordered that Wright should immediately forfeit half of all the Bitcoins he held before December 31, 2013, as well as half of the intellectual property that he owned prior to that date as well.

Wright, who claims to be Bitcoin proponent Satoshi Nakamoto, has always been rather infamous in the crypto space. However, his current legal troubles began when Ira Kleiman, the brother of the deceased David, sued him in February 2018.

According to documents, the plaintiff claimed that Wright had stolen hundreds of thousands of Bitcoin from the Kleiman estate, under the assumption that the friends and family of the deceased didn’t know how much he had accumulated. With Bitcoin trading at about $10,000 at the time, the amount I total was a staggering $5 billion.

The official complaint added that after Dave had passed away, Wright contacted the family and claimed to have worked with Dave to help develop Bitcoin and blockchain technology. He reportedly claimed that Dave had signed his rights to any resulting intellectual property or wealth in exchange for a share in an Australian company, adding that he would be able to sell the shares on behalf of the estate.

He reportedly then “forged a series of contracts that purported to transfer Dave’s assets to Craig and/or companies controlled by him. Craig backdated these contracts and forged Dave’s signature on them.”

In a bid to resolve the case, a United States District Court in Florida ordered Wright to produce a list of all his public Bitcoin wallet addresses and disclose all his crypto holdings; an order which Wright summarily defied.

Now, it would seem that Wright has hit a brick wall that he might not be able to manoeuver or weasel his way around. In addition to the forfeiture, Wright will also not have the privilege of seeking a jury trial, and while he can appeal, sources claimed that he wouldn’t be able to oppose the order.

Currently, there aren’t any documents available to corroborate the ruling. However, an evidentiary hearing was set for yesterday, regarding a motion for sanctions on order compelling discovery that was filed by the plaintiff.

It is also worth noting that the case isn’t over yet. Certain procedural issues persist, including evidence collection. It’s also worthy to note that significant issues seem to have already been ironed out, and an end to this rather lengthy case seems to be near.

Reinhart’s order will still need to get adopted by the District Judge, Beth Bloom, before it becomes final. Also, this is under the assumption that Wright and his attorneys don’t fire back with some arbitrary objections.

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Judge recommends bitcoin ‘creator’ turn over earnings in lawsuit

The self-proclaimed creator of bitcoin, Craig Wright, has been ordered to hand over half of his bitcoin earnings and intellectual property (IP) — earned …

Wright previously claimed to be Satoshi Nakamoto, the anonymous creator of Bitcoin. Researchers argued otherwise, and eventually, Wright withdrew his claim. According to Motherboard, Wright and Kleiman were either involved in creating Bitcoin or there when it launched. Regardless, it’s believed that they racked up a small crypto fortune.

Wright doesn’t have the best track record when it comes to being honest. His Ph.D. credentials are questionable. Companies he supposedly worked for denied ever working with him, and whether or not he’s the real Satoshi Nakamoto remains to be seen.

As part of yesterday’s ruling, Wright will not be allowed a jury trial. His lawyers will likely appeal the decision, but this could signal an end to the case. Though, this probably isn’t the last time we’ll hear from Wright.

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