Craig Wright to Lose Half His Fortune

Craig Wright claims to be the inventor of Bitcoin. However, Wright has had a difficult time proving his claim to the throne to the rest of the world. In a legal battle between the late David Kleiman and Craig Wright, billions of dollars are at stake. It appears Wright may not win the battle he set out to win leading to a forfeiture of up to half of his Bitcoin holdings. It seems imminent for Craig Wright to lose half his fortune.

The Case

In court, on August 26, 2019, the judge overseeing the case ruled against Wright citing falsifications and perjury as the reason. Wright had offered misleading, false documents to the court which have proven to work against him in the court of law. The presiding judge in the case suggested that Wright forfeit up to 50% of the Bitcoins he accrued while working with David Kleiman, as well as giving up his rights to any ownership of the Bitcoin software. To put it in perspective, Wright and Kleiman, while working together, mined in excess of 1 million Bitcoins. That means Wright may be expected to give up 500,000 bitcoins as a result. The case is not over but it seems the major components of the judge’s decision have been set.

Background

The Bitcoin holdings in question to be halved are any that Wright held before December of 2013. The case began in 2018 when Kleiman’s brother sued Wright for a total of $10 billion. The lawsuit came in response to the brother’s belief that Wright was trying to absorb Dave Kleiman’s intellectual property rights to the world’s most influential cryptocurrency, as well as Kleiman’s Bitcoin.

Looking forward

As the case has not completely finalized, Wright’s future is yet to be decided. The fact that Wright did not provide the requested documentation connected with his Bitcoin holdings before 2013 does not look good for Wright. The loss he is facing has nothing to do with whether he has the right to the intellectual property rights and Bitcoin holdings he believes he is entitled to. His loss is simply due to failure to comply with a court order for information. For that reason, Wright’s contempt course appears to be going in the court’s favor.

Craig Wright still has time to make an appeal or produce additional information, but we will have to wait and see what he is able to bring to the table.

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