In a noteworthy twist in the legal saga surrounding Craig Wright, who controversially claims to be Satoshi Nakamoto—the mysterious figure behind Bitcoin—a UK judge has sentenced him to a year in prison. Justice James Edward Mellor delivered the verdict on Thursday, stating that Wright’s actions were marked by “significant and persistent falsehoods” regarding his purported identity as Bitcoin’s creator.
A Mounting Legal Spiral for Wright
This sentence is just one part of Wright’s complicated legal landscape. Previously, he filed a staggering $1.15 trillion lawsuit targeting Bitcoin developers and Square, a prominent payment service provider. The court found that Wright had violated an earlier injunction that restricted him from publicly claiming to be Satoshi Nakamoto or pursuing legal action based on that assertion.
Despite the ruling, Wright indicated plans to appeal the contempt decision, although he has yet to elaborate on his next steps. His legal troubles have deepened due to a lawsuit initiated by the Crypto Open Patent Alliance (COPA), a coalition of cryptocurrency companies that aims to establish, in court, that Wright is not Satoshi Nakamoto. They are seeking to limit Wright’s capacity to file ongoing lawsuits regarding intellectual property conflicts tied to Bitcoin.
After a lengthy six-week trial, Justice Mellor delivered a verdict that clearly undermines Wright’s claims. He indicated that Wright likely fabricated documents to bolster his narrative of being Bitcoin’s creator. The judge characterized Wright’s actions as a “vehicle for fraud,” suggesting they stemmed from an insatiable desire to maintain the charade of being Satoshi Nakamoto.
Rejection of Wright’s Legal Assertions
Adding to the complexity, Justice Mellor has referred the matter to the Crown Prosecution Service for consideration of criminal charges against Wright for what he called “wholesale perjury.” However, as of now, no formal perjury charges have been laid against him.
Wright’s legal action, filed in October against Square and Bitcoin developers, claimed they had misrepresented Bitcoin as the first cryptocurrency and accused them of unauthorized changes to the original protocol. He maintained that these changes significantly deviated from the principles outlined by Satoshi Nakamoto in the Bitcoin White Paper.
In response, COPA argued that Wright’s lawsuit violated prior court orders and cited contempt on five key grounds. Justice Mellor ruled in favor of COPA, mandating Wright to halt all legal actions against Square and the Bitcoin developers, confirming that there was overwhelming evidence to substantiate the contempt allegations against him.
Wright had planned to be present at a hearing concerning the contempt charges but opted out, citing fears of incurring financial losses exceeding £240,000 (around $303,000). Recent reports suggest he may be in Asia, possibly in Singapore or Indonesia, although he did not reveal his exact location to the court.
Current Cryptocurrency Market Status
In cryptocurrency markets, Bitcoin currently trades at $96,340, having recently fallen below the crucial $100,000 threshold following the Federal Reserve’s decision to cut interest rates. The cryptocurrency has experienced a nearly 5% decline in the past day.
Source: Bitcoinist
