- U.K. court freezes £6 million of Craig Wright’s assets to prevent evasion of court expenses tied to his claim of being Satoshi Nakamoto.
- Concerns arose after Wright transferred assets outside the U.K. following a court ruling debunking his Nakamoto claim.
- The Crypto Open Patent Alliance (COPA) sought the freezing order to address its court expenses totaling over $8.4 million.
In a significant legal development, a United Kingdom court has approved the freezing of £6 million ($7.6 million) in assets belonging to Craig Wright. This decision comes as a preventative measure to ensure Wright does not evade court expenses related to his assertion of being Satoshi Nakamoto, the creator of Bitcoin.
The Identity Issue was whether Dr Wright was Satoshi Nakamoto, the creator of the Bitcoin System and the author of the Bitcoin White Paper and the first version of the Bitcoin Source Code. The Identity Issue was also a preliminary issue in that part of the copyright and database right action brought by Dr Wright and two of his companies against certain individuals who have been referred to as ‘the Developers’ (IL-2022-000069).
Justice James Mellor
The court’s decision stems from Wright’s recent transfer of assets outside the U.K. following a court ruling that dismissed his claim to be Nakamoto.
Specifically, Wright moved shares of his London-based firm, RCJBR Holding, to a Singaporean entity on March 18. This prompted concerns from the COPA, leading to the endorsement of a ‘worldwide freezing order‘ by the judge.
COPA’s Legal Battle
The Crypto Open Patent Alliance (COPA), has been actively involved in the legal proceedings against Wright. COPA sought the freezing order to address its significant court expenses, totaling $8,471,225 (£6,703,747.91).
COPA say the two applications necessarily inter-relate and the risks of Dr Wright dissipating his assets have made it necessary for COPA to seek an urgent determination in relation to its costs, at a point earlier than it might otherwise have done so.
Justice James Mellor
Craig Wright, an Australian computer scientist, has long claimed to be Satoshi Nakamoto. Accordingly, he has leveraged these assertions to file copyright claims related to the Bitcoin network. However, COPA and other entities have contested Wright’s claims, leading to legal battles and courtroom confrontations.
Following testimonies from key figures in the Bitcoin community, including early developers like Martti Malmi, the judge concluded on March 14 that the evidence overwhelmingly suggests Wright is not Satoshi Nakamoto. This ruling dealt a significant blow to Wright’s credibility and legal standing in the ongoing dispute.
Legal Ramifications
Wright’s legal actions have not gone unnoticed within the cryptocurrency community. In 2023, he sued several Bitcoin Core developers and prominent companies for copyright violations. In fact, related to the Bitcoin white paper and blockchain rights.
However, such lawsuits have been met with resistance from groups like the Bitcoin Legal Defense Fund. This aims to protect contributors from abusive legal actions.
With the Bitcoin white paper now subject to an MIT open-source license, Wright’s ability to claim copyright over it is in question. A court injunction would prevent further copyright claims by Wright. This is potentially reshaping the legal landscape surrounding Bitcoin and its foundational documents.
As the legal battle unfolds, stakeholders closely monitor the proceedings, anticipating their impact on the broader cryptocurrency ecosystem.
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