Craig Wright, the computer scientist who claims to be Satoshi Nakamoto, the elusive creator of bitcoin, was <a target="_blank" href="https://www.wired.com/story/craig-wright-the-self-styled-creator-of-bitcoin-handed-suspended-prison-sentence/#:~:text=Craig%20Wright%2C%20the%20computer%20scientist,found%20in%20contempt%20of%20court.” rel=”nofollow noopener” target=”_blank”>sentenced on Thursday to a year in prison by a UK judge for contempt of court.
This decision, issued by Judge James Edward Mellor, follows a thorough analysis of Wright's conduct, which the court ruled included “significant and persistent falsehoods” about his status as the founder of bitcoin.
The sentence, however, is suspended for two years, meaning Wright will only serve time if he commits more crimes during this probationary period.
Craig Wright's legal problems deepen
This ruling arises from a high-profile case in which Craig Wright filed a staggering $1.15 trillion lawsuit against bitcoin developers and payments company Square. The court found that he had violated a previous order prohibiting him from publicly claiming to be Satoshi Nakamoto and taking legal action based on this claim.
At the recent hearing, Wright reportedly expressed his intention to appeal the contempt ruling, although he could not immediately be reached for comment. However, Wright's legal problems increased when the crypto Open Patent Alliance (COPA), a consortium of cryptocurrency companies, launched proceedings against him.
COPA sought a formal declaration that Craig Wright is not Satoshi Nakamoto, aiming to limit his ability to file multiple lawsuits against bitcoin developers and others regarding intellectual property rights associated with bitcoin.
During the six-week trial, Judge Mellor delivered a rare and swift verdict, stating: “The evidence is overwhelming.” He concluded that Wright was not the individual operating under the pseudonym Satoshi Nakamoto and accused him of deliberately fabricating documents to support his claims.
The judge characterized Craig Wright's actions as a “vehicle for fraud,” and emphasized that his extensive lies were intended to reinforce his core falsehood: his identity as the creator of bitcoin.
In addition to the contempt ruling, Judge Mellor ordered the Crown Prosecution Service (CPS) to consider bringing criminal charges against Wright for what he described as “total perjury”. However, no perjury charges have been filed against him so far.
Wright's bitcoin Alteration Claims Rejected
Craig Wright's October lawsuit against Square and bitcoin developers accused them of “misrepresenting” bitcoin (btc) as the original cryptocurrency.
He claimed that they had altered the original bitcoin protocol without authorization, stating that these changes fundamentally deviated from the system defined by Satoshi Nakamoto in the bitcoin White Paper.
COPA, on the other hand, argued that Craig Wright's lawsuit violated court orders imposed on him, alleging contempt on five separate grounds.
In his ruling, Judge Mellor ordered Wright to cease his legal action against Square and the bitcoin developers, stating: “There is no doubt that each of these contempts has been proven.”
Craig Wright had been scheduled to attend a hearing to address the contempt allegations, but did not show up, citing potential financial losses exceeding £240,000 ($303,000) as the reason for his absence. Reports suggest that he is currently in Asia, possibly Singapore or Indonesia, but he did not reveal his exact location when asked by the court.
At the time of writing, bitcoin is trading at $96,340, having missed the key $100,000 mark following the US Federal Reserve's (Fed) decision to cut interest rates on Wednesday. Currently, btc is down almost 5% in the last 24 hours.
Featured image from the Financial Times, chart from TradingView.com
