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Self-proclaimed bitcoin inventor faces contempt case over US$1.2bil lawsuit

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Craig Wright Accused of Contempt of Court Over Bitcoin Lawsuit

Background

Craig Wright, an Australian computer scientist, has been accused of contempt of court after he filed a £911 million (US$1.18 billion) lawsuit against Twitter founder Jack Dorsey’s payments firm Block in the UK. Wright claimed to have been the author of the foundational text of bitcoin published under the pseudonym "Satoshi Nakamoto". However, a court found that there was "overwhelming evidence" that Wright did not write the 2008 text.

Previous Legal Proceedings

The Crypto Open Patent Alliance took legal action against Wright to stop him suing bitcoin developers. After a trial at London’s high court, a judge said in a written ruling in May that Wright lied "extensively and repeatedly" and forged documents "on a grand scale". The judge in July referred Wright to the UK’s crown prosecution service to consider whether he should be prosecuted for perjury. He also made an injunction preventing Wright from bringing any litigation on the basis of his claim to be Nakamoto.

Recent Developments

Wright is appealing against the ruling and a decision on whether he can bring an appeal has not yet been made. He denied forging documents when he gave evidence in February. However, at a preliminary hearing on Friday, Copa’s lawyer Jonathan Hough argued that Wright was in breach of the injunction having filed a lawsuit against Square Up Europe Limited, which is ultimately owned by Block, earlier this month. Wright was not legally represented and appeared at the hearing by videolink from Singapore, Hough said.

Wright’s Response

Wright stated, "I do not believe I am in contempt." He added that, if he was found to be in contempt of court, he was willing to amend his lawsuit to make clear the case had "nothing to do with the ownership of the creation of the system".

Next Steps

A hearing to determine whether Wright is in contempt will be heard in December. Wright’s lawsuit against Block was put on hold in the meantime.

Conclusion

Craig Wright’s legal troubles continue to unfold as he faces accusations of contempt of court over his recent lawsuit against Block. The outcome of this case will have significant implications for the cryptocurrency community and beyond.

FAQs

  • Who is Craig Wright?
    • A computer scientist who claims to have invented bitcoin under the pseudonym "Satoshi Nakamoto".
  • What is the controversy surrounding Wright’s claim?
    • A court found that there was "overwhelming evidence" that Wright did not write the foundational text of bitcoin.
  • What is the current legal status of Wright’s lawsuit?
    • The lawsuit is currently on hold pending a hearing to determine whether Wright is in contempt of court.
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