The High Court in London has issued a Worldwide Freezing Order (WFO) against Dr. Craig Wright, mandating a sum of £1.548 million to support the recovery of legal fees incurred by Peter McCormack. This order comes in the wake of a prolonged and complex legal battle between the two parties, centering around a defamation claim initially brought by Wright against McCormack.
Background and Context
The legal dispute between Dr. Craig Wright and Peter McCormack dates back to April 2019 when Wright, who claims to be Satoshi Nakamoto, the creator of Bitcoin, filed a defamation lawsuit against McCormack. McCormack, a well-known podcaster and commentator on Bitcoin matters, had publicly stated that Wright was fraudulently claiming to be Nakamoto.
The defamation trial, presided over by Chamberlain J in the Media and Communications List of the King’s Bench Division, was held between May 23 and May 25, 2022. The judgment, handed down on August 1, 2022, concluded that Wright had established a cause of action in defamation regarding 14 tweets and a YouTube video published by McCormack.
Despite this, Wright was awarded only nominal damages of £1 due to the court’s finding that Wright had advanced a deliberately false case and provided false evidence concerning the harm to his reputation.
The High Court today handed down a Worldwide freezing order against Craig Wright, in the sum of £1.548m, to support the recovery of my legal fees.https://t.co/M76fT684S6
— Peter McCormack🏴☠️ (@PeterMcCormack) July 5, 2024
The Costs and the Worldwide Freezing Order
Following the trial, McCormack sought to recover his legal costs, which were significant. Chamberlain J had ordered Wright to pay McCormack’s costs on an indemnity basis, save for specific costs covered under earlier orders by Master Dagnall and Julian Knowles J.
Given Wright’s extensive use of forged documents and fraudulent claims in the defamation suit, McCormack applied for a Worldwide Freezing Order to secure the costs owed to him. Mr. Justice Mellor, who was familiar with various other legal actions involving Wright and his claims to be Satoshi Nakamoto, presided over McCormack’s application.
During the hearing on July 2, 2024, Justice Mellor announced his decision to grant the WFO in the sum of £1.548 million, outlining his reasons in a detailed written judgment. The sum is comprised of costs already entitled to McCormack under the Chamberlain Order and further costs McCormack contends he will establish an entitlement to due to the fraudulent nature of Wright’s claim.
Key Factors in the Judgment
Justice Mellor’s judgment emphasized several critical points:
- Fraudulent Basis of Wright’s Claim: The judgment highlighted the fundamentally fraudulent nature of Wright’s defamation claim, underscored by the extensive use of forged documents. This fraud was central to McCormack’s application for the WFO.
- Risk of Dissipation: The court considered the risk that Wright might dissipate his assets to avoid paying the costs. Wright’s history of financial maneuvers and his resistance to disclosing his assets contributed to this assessment.
- Complex Legal History: The court’s familiarity with Wright’s involvement in other high-profile cases, such as the COPA v. Wright trial, informed its understanding of the broader context and the extent of Wright’s fraudulent activities.
- Procedural Integrity: The court underscored the importance of maintaining procedural integrity in the face of fraudulent litigation. Allowing Wright to escape financial responsibility for his fraudulent claim would undermine the judicial process.
Implications and Future Developments
The issuance of the WFO is a significant step in ensuring that McCormack can recover the substantial legal costs incurred in defending against Wright’s fraudulent defamation claim. It also sets a precedent for the treatment of litigants who engage in fraudulent conduct to manipulate legal proceedings.
The next steps will involve McCormack seeking a payment on account of the costs and proceeding with detailed assessment of all libel costs, including the potential for further claims against Wright for damages resulting from the fraudulent litigation.
This case also highlights the broader issues within the legal system when dealing with litigants who misuse the court’s processes through fraudulent claims and excessive legal spending. The judgment serves as a reminder of the courts’ commitment to upholding justice and ensuring that those who engage in fraudulent conduct are held accountable.
Community Reaction
The Bitcoin community erupted with a wave of reactions following Peter McCormack’s legal triumph over Craig Wright. The overall sentiment was one of elation and solidarity, as members celebrated McCormack’s victory and expressed their relief at the conclusion of the arduous legal battle.
Mandrik captured the bittersweet nature of the moment, tweeting, “It sucks that you’ll probably never see a dime of this, but at least he won’t be bothering anyone ever again. Thank you for fighting!” This sentiment highlighted the community’s recognition of the moral victory, even if financial gains remained uncertain.
FractalEncrypt summed up the general feeling with a concise, “You love to see it,” encapsulating the widespread joy and approval within the community. The reactions collectively painted a picture of triumph, validation, and support for McCormack’s steadfastness against Wright. The community’s response underscored a shared sense of justice and camaraderie, marking the end of a long-fought battle.
Not Over Yet
The High Court’s decision to issue a Worldwide Freezing Order against Craig Wright is a key moment in the protracted legal battle between Wright and Peter McCormack. It underscores the court’s determination to enforce justice and hold fraudulent litigants accountable. As the legal proceedings continue, this case will likely remain a focal point in discussions about legal integrity and the enforcement of court orders in cases involving significant fraudulent conduct.
Author Profile
- Lucy Walker covers finance, health and beauty since 2014. She has been writing for various online publications.
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