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Craig Wright loses Kleiman case—billions in Bitcoin awarded to Kleiman estate

Craig Wright loses Kleiman case—billions in Bitcoin awarded to Kleiman estate

Craig Wright lost the Kleiman case. The judge ordered Wright to part with half of his pre-2014 Bitcoin—worth over $5 billion—to the Kleiman estate, alongside considerable intellectual property.

The Southern District Court of Florida magistrate Bruce Reinhart recommended that Kleiman’s estate be awarded half the Bitcoin and intellectual property Wright held prior to 2014.

In 2018, Ira Kleiman, the brother of Wright’s late business partner Dave Kleiman, sued Craig Wright for allegedly attempting to appropriate the estate’s massive 1.1 million BTC holdings held in a family trust. These coins were jointly owned between Wright and Kleiman.

Over the course of the year-long court battle, it appeared that Craig Wright was attempting to forge documents and lie, under penalty of perjury, in an attempt to claim right over Kleiman’s $5 billion in Bitcoin. These coins were acquired through Florida-based W&K Info Defense Research, a company the two used to mine during the early days of the protocol.

Today, the judge reaffirmed that Craig Wright was indeed acting in bad faith in court. The judge rejected Wright’s testimony, found that he perjured himself, found him in contempt of court, and found that he falsified documents, according to court documents.

That said, the judge did not determine whether Wright was Bitcoin’s creator, Satoshi Nakamoto. Though his behavior in court certainly calls into question his claims to the title.

Meanwhile, shortly after the ruling, Craig Wright’s partner, Calvin Ayre, insinuated that Bitcoin SV won’t be impacted by the ruling.

On Bitfinex, Bitcoin SV is down roughly 4 percent in terms of BTC since the news broke. However, given the lack of liquidity and high concentration of BSV ownership among entities related to Wright et. al., the real impact of the event may not be accurately reflected in market activity.

That said, should Wright sell his BSV holdings to satisfy the ruling then the thinly traded Bitcoin SV markets may be devastated.

Court rules for Roger Ver in Craig Wright’s Satoshi defamation lawsuit
Related: Court rules for Roger Ver in Craig Wright’s Satoshi defamation lawsuit

The loss in the Kleiman case follows the dismissal of another case in a U.K. court, where Wright claimed that Roger Ver had defamed him. The judge said there was little evidence suggesting Wright’s reputation was harmed and that the U.S. was a better jurisdiction to render a judgment.

With the substantive issues in the Kleiman case settled, now the court will need to determine how to collect the whopping 550,000 BTC from Wright (though the answer likely involves selling a whole lot of Bitcoin SV).

Bitcoin SV | BSV

Updated: Nov 7 at 2:51 am UTC

Bitcoin SV, currently ranked #9 by market cap, is down 3.77% over the past 24 hours. BSV has a market cap of $2.31B with a 24 hour volume of $328.09M.

Chart by CryptoCompare

Bitcoin SV is down 3.77% over the past 24 hours.

Posted In: , , People of Blockchain, Price Watch
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Mitchell Moos

Mitchell Moos

Contributing Analyst @ CryptoSlate

Mitchell is a software enthusiast and entrepreneur. His first startup built algorithms for optimizing cryptocurrency mining. Prior to CryptoSlate, Mitchell was a project manager at a firm that built distributed software on Hyperledger. In his spare time he loves playing chess and hiking.

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