Another one bites the dust. No, not another Queen song. Another lawsuit by Craig Wright, who is infamous for his claim as the inventor of Bitcoin and the subsequent exposure as a falsehood, has recently experienced a further setback in his legal battles. He has withdrawn a high-profile lawsuit against a group of Bitcoin developers, in which he was attempting to claim ownership of billions of dollars worth of Bitcoin, connected to the 1Feex/12ib7 addresses. These addresses hold a significant amount of Bitcoin associated with the hack of Mt. Gox, the Tokyo-based Bitcoin exchange that went bankrupt after a series of hacks.
Wright’s ownership of the coins in these wallets had been contested, and the developers were fighting the lawsuit which alleged they wrongfully refused to assist Wright’s company, Tulip Trading, in retrieving the lost Bitcoins. Wright told a Norwegian court that he destroyed the hard drive that held the key slices necessary to access Satoshi Nakamoto’s private keys, which has made it “incredibly difficult” for him to prove cryptographically that he is the creator of Bitcoin.
He claimed this act was intentional to prevent being forced to prove his identity through cryptographic means, which he refused to do because it would allow his critics to avoid other arguments he believes are important.
For more background to this story refer to the Pineapple Case article.
This legal action required Wright to prove ownership of the 110,000 bitcoins, which are central to the case. The Court of Appeal ruled that the claim presented a serious issue to be tried, citing the area of law as developing, uncertain, and complex. Despite this, Wright has chosen to discontinue his lawsuit.
This decision is seen as a win for the Bitcoin developers, who were backed by the community against Wright’s legal actions. The case was poised to explore complex questions about the duties owed by developers to the owners of digital assets, potentially setting precedents affecting Bitcoin and decentralized finance as a whole.
Community Reaction
The Bitcoin community is reacting to the news of Craig Wright withdrawing his Pineapple Hack claim case, with the user Hodlonaut tweeting about the case dismissal. The claim involved a $5 billion lawsuit against Bitcoin developers, where Wright alleged theft of Bitcoin from specific addresses. The case was highly contentious within the space, earning Wright the pejorative nickname “Faketoshi,” a portmanteau of ‘fake’ and ‘Satoshi’, alluding to doubts about his claim of being Satoshi Nakamoto, Bitcoin’s pseudonymous creator. Hodlonaut’s tweet reflects a sentiment of triumph among the Bitcoin developers and a mockery towards Wright’s defeat in this case.
Arthur van Pelt’s reaction to Craig Wright discontinuing his lawsuit against Bitcoin developers is one of palpable relief. Labeling it as “good news,” Arthur recognizes the stress the case has put on the developers, referring to it as the “Pineapple hack case” and highlighting the high stakes involved concerning fiduciary duties. He implies confidence in the developers’ position, suggesting that they would have prevailed due to the alleged fraudulent aspects uncovered.
Arthur further interprets Wright’s withdrawal from the lawsuit as an acceptance of “total defeat,” a move that detaches from Wright’s claim of being Satoshi Nakamoto. He sees this as a harbinger of positive developments for other related cases, like the one involving Hodlonaut, indicating a potential domino effect of legal victories following this withdrawal. This reaction mirrors a sentiment of vindication felt by many supporters of the Bitcoin developers embroiled in legal challenges posed by Wright.
Arthur van Pelt clarifying a query from MoparMiningLLC regarding the defendants in Craig Wright’s lawsuit, confirms that the Bitcoin Association for BSV was indeed one of the four groups sued by Wright. Arthur explained that Wright targeted the 1Feex/12ib7 tokens on the BSV blockchain, leading to a lawsuit against the BSV Association, which apparently resulted in a quick settlement and the creation of a Notary Tool. He adds that the other defendant groups in Wright’s legal pursuits included Bitcoin developers, Bcash devs, and eCash devs, highlighting the broad scope of the litigation Wright initiated.
Ex nChain CEO Christen Ager-Hanssen‘s opinion on the discontinued case reflects a critical view of Wright’s legal maneuvers. Ager-Hanssen seems to suggest that Wright and his associated companies are withdrawing from the lawsuit as a last-ditch effort to maintain dignity amidst a situation they can no longer control. He views this withdrawal as an inadequate measure to rectify the disorder that has unfolded due to Wright’s actions, indicating skepticism about the motives behind the decision to drop the case. Ager-Hanssen’s stance is consistent with a broader skepticism within the community towards Wright’s various legal claims related to Bitcoin.
Developer Frank Rundatz has expressed a dismissive response to the discontinuation of Craig Wright’s $5 billion lawsuit. According to Frank’s commentary, Wright’s claim was seen as unfounded and lacking in substantial evidence from the outset. He points out inconsistencies in the narrative, such as the supposed acquisition of Bitcoin from a Russian exchange that didn’t deal in Bitcoin at the time, and the unusual method of transaction, which included a “test transaction” over the phone.
Frank is also critical of the lack of a proper police investigation and media coverage, skeptic of the claim’s authenticity. The developer’s reaction reflects a broader sentiment within the tech community about the validity of such lawsuits and highlights the importance of critical thinking in the face of sensational legal claims.
The community has been following this case closely, and Wright’s decision to drop the lawsuit has been met with relief and a sense of vindication for the developers involved.
Author Profile
- Lucy Walker covers finance, health and beauty since 2014. She has been writing for various online publications.
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