Is CSW penalized 550,000 BTCs, is this important?

According to reports, CSW (Craig Wright) lost in the lawsuit of brother Ira Kleiman, the brother of the late business partner David Kleiman. The judge asked CW to pay Ira Kleiman 50% of the bitcoin (that is, the bitcoin he claimed to be dug out with Kleiman before 2014) and half of the intellectual property.

However, CSW has never provided any evidence that he owns these bitcoins, and it is still a mystery for Ira Kleiman to finally get this part of the money.


CSW was sentenced to pay 550,000 BTC

The case began in February 2018, when Ira Kleiman accused CSW of illegally encroaching on David Kleiman's bitcoin. If these bitcoins really exist, the specific excavation time should be between 2009 and 2011, and today's value will exceed $10 billion.

Katie Ananina, who participated in the trial, said that CSW said that he co-founded a company with David Kleiman and dug out 1.1 million bitcoins. The judge ruled that Ira Kleiman was entitled to half of the bitcoin, and the blocks applied for by both sides before David Kleiman's death. Half of the ownership of chain-related patents is also enjoyed by Ira Kleiman. CSW must also pay all legal fees for Ira Kleiman.

Magistrate Bruce Reinhart had asked CSW to provide evidence of the ownership of 1 million bitcoins and the public address associated with the fund. CSW said this is impossible because 821,000 of them were “locked in” to the trust fund Tulip Trust and could not be taken out before January 21, 2020. CSW claims that the trust's wallet has been encrypted, its private key is split into 15 copies, and he holds seven of them. Once he gets the 8th part of the private key, he can unlock the coins and provide proof of ownership.

Judge Reinhart did not seem to believe in the CSW statement. He ruled that the trust company did not exist and expressed doubts about the credibility of CSW. A source attending the trial said that the judge’s comments were “very strict” and even hinted that CSW was a “serial counterfeiter” and perjury. Kleiman’s defense attorney pointed out that CSW’s testimony was fraudulent and contradictory throughout the course of the case.

Judge Reinhart stated:

"In my opinion, Dr. Wright (CSW) is not a person who tells the truth. All the testimony of CSW has been dismissed."

Attorney Stephen Palley refines several key points in this trial:

1. The court made it clear at the outset that its opinion does not consider whether CSW is Nakamoto or not, and does not consider how much bitcoin he currently holds.

2. The court made it clear that the CSW “deliberately filed fraudulent documents with the court, obstructing the judicial process and providing perjury”. Nothing is more contrary to the spirit of justice than this. He lied again and again, you can't do this in federal court.

3. As a sanction, the court used Article 37 of the Federal Civil Procedure Code to counter the defences of CSW and found that all relevant facts were in favor of Kleiman. Please note again that all this is because he lies and obstructs the judicial process.

4. CSW will have to pay Kleiman's attorney's fees.

5. This order is actually a recommendation and must be adopted by the local court.

CSW credibility is doubtful

The credibility of CSW, especially his claim to be Bitcoin creator Nakamoto, is often questioned by the Bitcoin community.

Earlier, CSW tried to dismiss the case, but the trial judge Beth Bloom rejected his application on the grounds that he lacked credibility. In order for Judge Reinhart to make a final decision, Bloom must revisit the case and confirm it.

CSW and his legal team responded to the development of the situation, noting that the hearing was not legally binding. Judge Reinhart can formally recommend District Judge Bloom to take action. But CW's lawyers claim that even if Justice Bloom agrees with Reinhart's advice, it is still possible to continue the trial until the problem is resolved.

Given the huge amount of money involved in the case, the lack of credibility in CSW has become particularly problematic. Reinhart's opinion in court is that if these funds exist, CSW should have the right to use them. If you can't do this, CSW must pay at least Kleiman's attorney's fees.

Shortly after the trial, CSW said in a telephone interview that if the court officially issued an order, he would abide by it and he would not pay any attention to whether he had the funds.

CSW claims that it does hold these funds, but it will not be used until 2020, and the presiding judge's skepticism is getting stronger and stronger. It is not clear how the future progress of the case will be.

Community perspective: 3 choices in front of CSW

After giving advice from Judge Reinhart, CW supporter Calvin Ayre quickly responded that Bitcoin SV would not be affected by this result.

“Although CSW is Sakamoto, this is obvious to everyone (it is obvious to every smart person), but now it makes no sense. The real bitcoin Bitcoin SV is anyone. Unreachable… It is the world's top application platform, with a unique scale around the world, and CSW does it."

However, more people are standing on the opposite side of the CSW. CNBC host Ran NeuNer said:

“Today, we learned a valuable lesson. If you pretend that you are Nakamoto, you should be prepared to give up half of the bitcoin that you couldn’t get.”


Some netizens pointed out that there are three choices in front of CSW:

"1. Prove that you are Nakamoto, and then give Kleiman half bitcoin. 2. Persist yourself in Nakamoto, but go to jail because you can't get bitcoin. 3. Admit that you are not Nakamoto, because you are jailed for perjury. ""

Monroco's chief developer Riccardo Spagni gave the fourth choice:

"4. Said that his private key was accidentally lost."


This seems to be the usual method used by people who claim to be Nakamoto.

Don't trust. Verify.

The big thing is that many people seem to have caught the wrong point. Overseas media Cointelegraph published an article yesterday entitled "Craig Wright: Kleiman Heritage Agents will sell $2 billion in Bitcoin." The move sparked a crusade in the community, which was tantamount to acknowledging that CSW holds these bitcoins, and the facts are more likely to be the opposite.

Wizsec, a Bitcoin security expert organization, analyzed a series of "addresses belonging to CSW and Kleiman" in February last year. It says that most addresses actually have one thing in common: they hold a lot of bitcoin to some extent. It’s as if someone randomly selected some addresses while browsing the “Blockchain Rich List” and then claimed to own these bitcoins, but did not provide substantial evidence.

Wizsec said that the struggle between CSW and Kleiman is more like a meaningless battle for funds that do not belong to either party. But this gave us an important reminder:

"Don't trust. Verify. (We don't need to trust, just verify)"

From the information currently given, we still can't verify effectively.

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