Australian who falsely claimed to have invented bitcoin found in contempt of UK court
LONDON (AP) — Craig wright, an Australian computer scientist who has long and controversially claimed to be the creator of bitcoin, was found in contempt of London’s High Court on Thursday. Wright was sentenced to 12 months in prison, suspended for two years, for breaching a court order that barred him from making further legal claims related to the cryptocurrency.
Breach of court order
Justice James Mellor ruled that wright had committed a “clear breach” of the March 2023 order, which prohibited him from initiating or threatening any additional legal action regarding bitcoin. Despite the ruling, Wright filed claims in october amounting to over £900 billion ($1.1 trillion) against companies and individuals over intellectual property rights linked to the digital currency.
The Crypto open patent alliance (COPA), a coalition of technology and cryptocurrency firms, brought the case against wright. COPA argued that his actions were in direct violation of the court’s earlier decision, which had rejected his assertion that he was the pseudonymous creator of bitcoin, known as “Satoshi Nakamoto.”
Justice Mellor stated it was “beyond any reasonable doubt” that wright had wilfully disregarded the court’s ruling.
A murky claim to fame
Wright has spent nearly a decade claiming to be nakamoto, the enigmatic figure credited with creating bitcoin. Bitcoin’s origins date back to 2008 during the global financial crisis, when a paper attributed to nakamoto proposed a digital currency that could be exchanged globally without the need for banks or national currencies.
Three years later, nakamoto disappeared, leaving their true identity shrouded in mystery. To date, no definitive evidence has emerged to prove Wright’s claims, which have been widely disputed within the cryptocurrency community.
Wright first publicly claimed to be nakamoto in 2016, sparking controversy and legal battles. Critics have accused him of attempting to exploit bitcoin’s meteoric rise in value for financial gain. For example, at the start of the COVID-19 pandemic in 2020, bitcoin was valued at just over $5,000. By early november this year, it briefly surpassed the $100,000 mark before falling back to around $80,000.
COPA’s case
COPA, which represents a group of tech companies and cryptocurrency firms, argued in court that Wright’s latest actions were a deliberate and egregious violation of the earlier court order. The March 2023 ruling had determined that Wright was neither the creator of bitcoin nor the author of its foundational software.
Wright, who reportedly resides in either Indonesia or Singapore, attended Thursday’s hearing via video link but was absent from Wednesday’s proceedings, where COPA presented its case. He has since announced plans to appeal the court’s decision.
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Cryptocurrency and bitcoin’s legacy
Bitcoin remains the largest and most established cryptocurrency, despite the emergence of rivals such as Ethereum, XRP, and Dogecoin. Cryptocurrencies operate on blockchain technology, which records transactions across a decentralised network. Unlike traditional currencies backed by governments or central banks, cryptocurrencies are unregulated, making them volatile but appealing to some investors as a digital alternative to conventional money.
While bitcoin has become increasingly mainstream, its volatility remains a concern. Earlier this month, the cryptocurrency reached an all-time high, only to drop by nearly 20% within weeks.
The legal fallout
Wright’s legal battles have drawn significant attention in the cryptocurrency world and beyond. His claims to be Satoshi Nakamoto have not only been dismissed by the courts but have also undermined his credibility within the tech and financial communities.
Justice Mellor’s decision to suspend Wright’s sentence for two years means he avoids immediate imprisonment but faces serious consequences if he continues to flout court orders.
As the world of cryptocurrency continues to evolve, Wright’s case serves as a stark reminder of the challenges posed by the lack of regulation and accountability in this burgeoning field.
