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Craig Wright lost in court and has to pay $5 billion

Craig Wright lost in court and has to pay $5 billion

Self-proclaimed Bitcoin inventor Craig Wright lost in court and has been ordered by the judge to pay billions of dollars worth of the cryptocurrency to the Kleiman estate.

August 29, 2019 | AtoZ Markets –  A Florida federal judge, Bruce Reinhart ruled on Tuesday that Craig Wright must hand over to the family of a former business partner, Dave Kleiman, who died in 2013, half of his accumulated bitcoins, which are potentially worth up to $5 billion. He must also forfeit the intellectual property held prior to 2014.

Let’s throw some light into the story. 

The Craig Wright vs. Kleiman Lawsuit in brief

According to a suit filed on February 2018 by Kleiman’s family, the pair co-owned bitcoins allegedly mined between 2009 and 2011, roughly 1.1 million (worth about $11.2 billion today), and that upon Kleiman’s death, Wright backdated contracts to transfer the ownership of the currency and intellectual property to himself.

Over the course of the year-long court battle, it appeared that Craig Wright was attempting to forge documents and lie, under penalty of perjury, in an attempt to claim right over Kleiman’s $5 billion in Bitcoin. These coins were acquired through Florida-based firm named W&K Info Defense Research, a company the two used to mine during the early days of the protocol.

“During his testimony, Dr. Wright’s demeanor did not impress me as someone who was telling the truth. When it was favorable to him, Dr. Wright appeared to have an excellent memory and a scrupulous attention to detail. Otherwise, Dr. Wright was belligerent and evasive,” Judge Bruce Reinhart said in his judgment.”

Although Craig was ordered to pay 50% of the bitcoins mined to Kleiman, the hearing continues as other details are expected to come to light in the next few weeks.

Wright claims he won’t tank the market

Because Craig Wright lost in court, some believe that it could negatively impact Bitcoin price if Kleiman decides to put out all the BTC he gets. However, we should not be worried says Wright at least according to the alleged interview he gave to Modern Consensus, right after the hearing ended.

Among other things discussed in the interview, Wright supposedly said that this court ruling won’t affect BTC rival cryptocurrency Bitcoin SV (BSV), but we can only wait and see what paying $5 billion to the family of deceased will do to the market. However, Wright praised himself a bit saying:

“Let’s see what it does to the market. I wouldn’t have tanked the market. I’m nice.”

He also mentioned that it worries him that his kids will now be aware that he has the other $5 billion and that Ira Kleiman, the brother of Wright’s late business partner David Kleiman, now has to pay taxes to inherit the $5 billion. He stated:

“Everyone wants to hate on me. This is the result. If you’d left me alone, I would have sat on my fucking money and you wouldn’t have to worry. And the biggest whale ever has to dump because he has to pay tax. It’s not a transfer. Florida has an estate tax. Trust me. This is not an outcome I would have liked. I own a lot of BTC.”

As a reminder, Wright, who is an Australian entrepreneur, claimed back in 2016 that he was the pseudonym Satoshi Nakamoto, the inventor of bitcoin, but stepped back from that claim after skepticism arose. This lawsuit, however, did not claim the Kleiman or Wright were the actual inventors of bitcoin but instead alleges that the two were heavily involved with the cryptocurrency in its infancy.

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Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.