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Craig Wright pulls out of 500,000 BTC settlement, Kleiman trial back on

Craig Wright pulls out of 500,000 BTC settlement, Kleiman trial back on

Craig Wright has pulled out of the settlement with the Kleiman estate, claiming he was unable to finance the 500,000 BTC payoff. Wright lost the case against Kleiman earlier in August and was ordered by the court to hand over half of the 1 million bitcoin he mined before 2014 to the estate of his former partner.

Wright v. Kleiman case back on

Craig Wright, the self-proclaimed Satoshi Nakamoto, has broken the settlement agreement he made with Ira Kleiman, who represents the estate of his former partner Dave Kleiman.

The year-long legal battle for the 1 million bitcoin Kleiman and Wright mined together until 2014 ended earlier in August when a Florida court ordered Wright to pay Kleiman’s estate half of his BTC.

According to a Nov. 1 motion filed by Kleiman’s legal counselors Roche Freedman, both parties have reached a “non-binding settlement in principle” after several in-person meetings and numerous phone conferences.

The plaintiffs claim they stopped active litigation and focused on drafting binding settlement papers. However, about a month and a half into the process, they found their efforts to be futile.

Roche Freedman wrote in the motion:

“On October 30, without any advance notice, Plaintiffs were informed Craig could no longer finance the settlement and was “breaking” the non-binding settlement agreement.”

The Kleiman estate is now preparing for trial, with the next trial date set for Mar. 30, 2020.

Wright fights back against an important witness deposition

The first thing on Roche Freedman’s agenda was to obtain a deposition from James Wilson, who served as a chief financial officer of several Wright’s companies in Australia between 2012 and 2013. The plaintiffs believe Wilson’s testimony will be crucial for the case, as he presided over the companies at the time Wright claimed to have sold the interest in the companies to Dave Kleiman in exchange for BTC.

Wilson, who resides in Australia, agreed to have his deposition taken on Nov. 8, when he will be visiting Washington D.C.

However, Wright’s legal team said that they would not consent to the deposition, arguing that they haven’t received the 14-day notice for an out-of-state deposition required by law. The decision on whether they would consent to a video deposition at a later date will be made sometime next week, the court documents showed.

While this could prove to be a bureaucratic hassle for Kleiman’s estate, Wright’s conduct in the matter has certainly put a further strain on his already tarnished reputation with the court.

Posted In: , People of Blockchain

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Priyeshu Garg
Author

Priyeshu Garg

Crypto Analyst @ CryptoSlate

Priyeshu is a software engineer who is passionate about machine learning and blockchain technology. He holds an engineering degree in computer science engineering and is a passionate economist. He built his first digital marketing startup when he was a teenager, and worked with multiple Fortune 500 companies along with smaller firms. When he is not solving transportation problems at his company (Ola), he can be found writing about the blockchain or roller skating with his friends.

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