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Judge Fines Craig Wright $1M in Landmark Satoshi Identity Case

By Jerry McNeill
Dec 25, 2023
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The ongoing legal dispute over the identity of Satoshi Nakamoto and Bitcoin ownership has seen new developments, as a British judge recently rescheduled the trial between Craig Wright and Bitcoin Core developers for February 5.

Back in 2016, Craig Wright made claims of being Satoshi Nakamoto, the creator of Bitcoin (BTC). He filed a lawsuit against 13 Bitcoin Core developers and several companies, including Blockstream, Coinbase, and Block, alleging violations of his rights related to the Bitcoin white paper, Bitcoin Coin file copyright format, and Bitcoin blockchain database. These entities are represented by the Cryptocurrency Open Patent Alliance (COPA), a non-profit organization.

During a pretrial review on December 15, Judge Edward James Mellor permitted Wright to submit 97 additional documents to support his claims. These documents, reportedly discovered on two USB drives found at his home in September, included files from LaTex, the open-source document preparation system used in drafting the Bitcoin white paper.

Bitcoin developers have accused Wright of fabricating evidence, altering metadata, and deliberately prolonging the legal process. The emergence of these new documents followed the developers' submission of 50 pieces of evidence challenging the authenticity of Wright's previous submissions. Judge Mellor also granted the developers' request for additional security, instructing Wright to pay an extra £800,000 (about $1 million) by January 5 to cover their legal expenses if he loses the case. Wright has already deposited £100,000 ($127,000) as security.

Moreover, the judge ordered Wright to pay £65,000 ($82,000) for COPA's costs in obtaining expert evidence concerning his autism spectrum disorder (ASD) claim. Wright had asserted disability due to ASD and provided a report outlining necessary trial adjustments, including a list of cross-examination questions, which are used to challenge a witness's testimony.

Wright's disability claims were contested by the developers, who hired an expert supporting their assertions. Consequently, during the trial, Wright could only interact with the proceedings via the LiveNote screen and was allowed to write questions on paper.

The Bitcoin code is open source, distributed under the MIT license, allowing free reuse for various purposes, including proprietary applications. Wright's argument suggested that Bitcoin Core developers were allegedly involved as "Bitcoin partners" exerting control over Bitcoin, which has been a point of contention in the case.

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