The Curious Case of Craig Wright and the Missing Bitcoins

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Craig Wright, who claims to be the brains behind Bitcoin, is currently embroiled in a lawsuit, and according to Bitcoin Core developers’ legal team, his actions might imply an admission to pilfering 80,000 BTC (equivalent to around $2 billion today) from the Mt. Gox exchange.

Wright alleges that he possesses 111,000 Bitcoin, thought to have been siphoned from Mt Gox. However, the defense points out a glaring issue: he hasn’t produced any concrete evidence or documents to prove his claim. In fact, they’ve gone so far as to accuse him of conjuring up the scant documentation he did present.

Our intention is to dismiss this claim as it’s likely fraudulent and a misuse of the legal process

To deal with this, lawyers representing the 12 Bitcoin Core developers, whom Wright has taken to court, have made a preliminary issue application at the UK High Court. Timothy Elliss, a representative from Enyo Law LLP, emphasized in the application, “Our intention is to dismiss this claim as it’s likely fraudulent and a misuse of the legal process. We also want some key disclosures and directions to pinpoint the issue of potential deceit before diving deeper.”

Memories of the Tulip Mania

What is a preliminary issue application? It is a legal strategy that seeks to sort out certain contentious points before a full-blown trial kicks off. It’s essentially a move to streamline the process, which can save both time and money. The case in question goes by the title “Tulip Trading Limited v. Bitcoin Association For BSV & Others”, with Tulip Trading being Wright’s own venture. Fun fact: the company’s name harks back to the tulip mania phenomenon that hit the Netherlands in the 17th century.

The Bitcoin Legal Defense Fund provided more clarity on the matter, saying, “The application outlines the evidence Tulip Trading must furnish in an initial trial to confirm their ownership of the contested Bitcoins. Moreover, it asks Tulip Trading to deposit $1.63 million as security, to be used for litigation costs if the case gets thrown out.”

Tulip Trading Ltd accepts that it must establish that it owns the Digital Assets in order to obtain the relief it seek. It cannot do so because it never owned the Digital Assets and has commenced this claim fraudulently and in reliance on fabricated documents. This is of a piece with the historical conduct of the individual behind Tulip Trading Ltd, Dr. Craig Wright. Dr. Wright has a long history of fraud, forgery, and dishonesty (including in court proceedings in this jurisdiction and internationally). He has been shown to be a thoroughly dishonest individual and it is the position of the [defendants] that these proceedings are an attempt by Dr. Wright, through Tulip Trading Ltd, to use the English courts as an instrument of fraud. These are plainly serious allegations and they are not made lightly.

The crux of the developers’ argument is simple: neither Wright nor his company, Tulip Trading Limited, had any rightful claim over the Bitcoins mentioned in the suit. If the judiciary sides with this argument, the onus will be on Tulip Trading to validate their ownership for the proceedings to move forward.

Adding another twist to the tale, Elliss has made a bold assertion. If Wright truly has ownership of the Bitcoins, it indirectly suggests that he acknowledges stealing a massive chunk of 80,000 BTC. The defense added, “A consensus in the crypto circle indicates that the Bitcoins in the 1Feex address trace back to a notable hack in March 2014 at a Japanese crypto exchange. So, if Dr. Wright owns the Bitcoins in this address (a claim we challenge), he’s essentially confessing to the Mt. Gox heist.”

Lastly, a nod to The Bitcoin Legal Defense Fund, an entity established in 2021 with a boost from Jack Dorsey, the erstwhile Twitter CEO. This non-profit has the back of Bitcoin developers when legal storms brew, as evidenced in April when they rallied behind the developers facing off against Wright.

The Satoshi Nakamoto Mystery: Is Craig Wright the Man Behind the Name?

Craig Wright, the Australian computer scientist born in 1970, is no stranger to controversy. He’s put forth the claim that he’s the elusive creator of Bitcoin, known by the pseudonym Satoshi Nakamoto. Delving deeper into his claims, Wright highlights the role of his late friend, Dave Kleiman, a renowned computer security expert. Together, Wright asserts, they played an integral role in forging Bitcoin’s design.

His claims weren’t unprovoked. In fact, they came on the heels of articles by Wired and Gizmodo in December 2015. These publications had suggested that Wright may indeed be Nakamoto, citing blog posts he purportedly made in 2009, right before Bitcoin’s beta release saw the light of day.

However, the narrative took a turn when evidence surfaced via the Wayback Machine, indicating that these posts might not be as old as they seemed. The articles in question may have been backdated, potentially emerging between 2013 and 2014. This twist led Wired to reassess its initial assertion, expressing reservations about the veracity of Wright’s claims and hinting at the possibility of a deliberate “hoax.”

The Bitcoin community, known for its sharp-eyed members, was both intrigued and skeptical. While many remained unconvinced, some influential figures in the crypto world sided with Wright. Notably, Gavin Andresen, a pivotal figure in the Bitcoin Foundation and someone who had direct interactions with Nakamoto during Bitcoin’s infancy, voiced his belief. He stated that he was “convinced beyond a reasonable doubt” that Wright indeed was the man behind the Nakamoto moniker.