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Kleiman Estate Says Satoshi Reveal ‘Is Relevant’ in Billion Dollar Bitcoin Lawsuit

March 31, 2019 |

Kleiman Estate Says 'Satoshi Reveal Is Relevant' in Billion Dollar Bitcoin Lawsuit

In the state of Florida, there’s an ongoing lawsuit against Craig Wright, the self-proclaimed Satoshi Nakamoto, for billions of dollars. Wright is being sued by the Kleiman family on behalf of the late Dave Kleiman for allegedly misappropriating billions worth of BTC through a partnership years ago. On March 29, the Kleiman vs. Wright discovery meeting transcript was published revealing more interesting details about this unique case.

Also read: Jeff Garzik Subpoenaed in Kleiman Bitcoin Lawsuit Against Craig Wright

The Billion Dollar Bitcoin Lawsuit Continues With a Discovery Meeting

According to Ira Kleiman, his brother David’s inheritance was allegedly manipulated during a multi-year partnership with Australian native Craig Wright. On Valentine’s Day last year, a case was filed against Wright in Florida which accused him of defrauding Kleiman out of an assumed 1.1 million BTC stash. The lawsuit has continued into 2019, after Wright’s legal counsel attempted to get the case dismissed only for Florida district Judge Beth Bloom to deny the defendant’s dismissal. This week, on March 29, the court’s discovery meeting transcript was released which explains that Wright and Kleiman’s partnership was very complicated. Wright is scheduled to be deposed under oath by Kleiman’s lawyers on Thursday, April 4.

Kleiman Estate Says 'Satoshi Reveal Is Relevant' in Billion Dollar Bitcoin Lawsuit

The discovery meeting reveals some fascinating aspects in regard to one of the most compelling Bitcoin-related lawsuits to date. For instance, during the proceedings, the court asked Wright’s legal counsel whether he did or did not collaborate with Kleiman in the development of Bitcoin. Wright’s attorneys replied by saying: “It is Dr. Wright’s position, your Honor, that Dave Kleiman assisted in editing the protocol related to Bitcoin but did not create Bitcoin.” The judge then asked the defendant’s counsel if Wright and Kleiman jointly mined bitcoin and co-owned any cryptocurrencies. The lawyer detailed that Wright’s position is that he never mined bitcoin with Kleiman nor did any co-owned bitcoin exist. Additionally, Wright’s attorney asserted that Kleiman had no legal rights to intellectual property associated with Bitcoin or the Bitcoin protocol.

Kleiman Estate Says 'Satoshi Reveal Is Relevant' in Billion Dollar Bitcoin Lawsuit

Parsing Through Thousands of Documents

The judge and the two disputing parties also discussed Wright’s issues with the Australian Tax Office (ATO), which explained that the ATO was and still might be investigating Wright and Kleiman’s collaboration. The lawyer representing the Kleiman estate stated that the plaintiffs were contacted by the ATO while conducting an investigation to find out whether there was information the Kleimans had for corroborating evidence on the matter. Further, the discovery transcript reveals that the late David Kleiman left a significant trail of documents behind which may pertain to the lawsuit. The two disputing parties are parsing through thousands of documents that belonged to David Kleiman, his brother Ira, and the business W&K Info Defense Research. This includes documents that stem from a number of electronic devices, computers, phones, hard drives, encrypted chats, and emails that belonged to Kleiman.

Kleiman Estate Says 'Satoshi Reveal Is Relevant' in Billion Dollar Bitcoin Lawsuit
Submitted evidence from the Kleiman estate that allegedly shows Wright promising certain assets to Dave’s heirs.

Kleiman’s Legal Counsel: ‘The Satoshi Nakamoto Story Is Relevant’

Toward the end of the discovery hearing, the parties also discussed the Satoshi Nakamoto moniker and how Wright claimed to be the creator of Bitcoin but failed to provide evidence. Kleiman’s lawyer explained how Andrew O’Hagan, the famous London Review of Books author who wrote an article called “The Satoshi Affair,” had hours of Wright discussing how he invented Bitcoin. The entire story between O’Hagan and Wright makes the plaintiffs believe that Wright came out saying he was Satoshi for “celebrity status” and to “sell his intellectual property that Satoshi Nakamoto created for billions of dollars.” The Kleimans think the Satoshi story is “relevant” to the proceedings and that the late David Kleiman was very much involved in a partnership with Wright involving Bitcoin.

“So the plaintiffs’ position is that admissions with regard to who owned the intellectual property created by Satoshi Nakamoto and the story of Satoshi Nakamoto are relevant to the case because it is plaintiffs’ theory that Satoshi Nakamoto is the name of a partnership between Craig Wright and Dave Kleiman,” explained the Kleiman estate’s lawyer.

Kleiman Estate Says 'Satoshi Reveal Is Relevant' in Billion Dollar Bitcoin Lawsuit

In addition to the Wright deposition scheduled for April 4, Ira Kleiman will be deposed as well. After the depositions, the court will reconvene to discuss the matters and come back with any follow up. The judge also gave the plaintiff’s counsel permission to ask Wright about the communications with O’Hagan in order to proportionate the findings. The entire case between Wright and Kleiman goes beyond any scope of all the other high profile BTC cases so far because it involves the creation of Bitcoin itself. Moreover, the lawsuit started many years after Ira Kleiman became his brother’s beneficiary when Dave died from a rough battle with MRSA. The Kleiman vs. Wright case is thought provoking because whatever way it settles, some believe it will either provide answers or even more questions to the Satoshi Nakamoto mystery. So far, Wright has failed to convince the greater Bitcoin community that he is the creator of Bitcoin and has yet to provide any cryptographic evidence.

What do you think about the Kleiman vs. Wright legal battle? Let us know what you think about this subject in the comments section below.


Image credits: Shutterstock, Pixabay, Wiki Commons, Court Listener, and Pacer.


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The post Kleiman Estate Says Satoshi Reveal ‘Is Relevant’ in Billion Dollar Bitcoin Lawsuit appeared first on Bitcoin News.

Bitcoin News

Bannon: With Mueller probe over, Trump ‘is going to go full animal’

March 27, 2019 |

Bannon: With Mueller probe over, Trump ‘is going to go full animal’And despite “the gauntlet” of investigations that Trump faces, he believes the anemic Mueller report will deflate them—and simultaneously inflate the president. He believes most investigations into Trump are effectively dead in the water.



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Bank of Mexico’s Attempt to Regulate Crypto ‘Is a Disaster,’ Exchange CEO Explains

March 18, 2019 |

Bank of Mexico's Attempt to Regulate Crypto 'Is a Disaster,' Exchange CEO Explains

The long-awaited rules on crypto assets recently published by the central bank of Mexico have caused quite a stir. A local cryptocurrency exchange’s CEO explains to news.Bitcoin.com that “the impact goes beyond the crypto industry.” Calling it “a disaster,” he asserts that the people within the central bank “have really shown their ignorance” about cryptocurrency.

Also read: Mexico’s Central Bank Publishes ‘Catch-22’ Rules Impacting Crypto Exchanges

Central Bank Showing Ignorance

Much discussion has transpired after the Bank of Mexico (Banxico), the country’s central bank, published a circular detailing crypto-related provisions for the regulation of financial technology institutions (FTIs).

Sebastian Acosta Checa, CEO of local crypto exchange Isbit, shared with news.Bitcoin.com that the circular “says FTIs have to prevent consumers from being ‘exposed’ to the terrible ‘dangerous’ nature of virtual assets on the grounds of their ‘volatility’ and ‘complexity.’” Overall, noting that “In a way, it [Banxico’s circular] is preventing institutions from offering virtual assets to end consumers,” he remarked:

This is a disaster. The people within Banxico have really shown their ignorance about the subject they are trying to regulate.

Bank of Mexico's Attempt to Regulate Crypto Is a Disaster, Exchange CEO Explains

Mexico’s congress passed a law to regulate fintech companies in March last year, putting Banxico in charge of determining which cryptocurrencies would be authorized to offer to the public by regulated entities. At the time, the crypto community and stakeholders were hopeful that the central bank would introduce positive regulations to foster the fintech sector and the country’s economy as a whole.

However, when Banxico finally published the circular, it “essentially stipulated that they wouldn’t authorize any cryptocurrency to be offered by regulated financial companies,” Tomas Alvarez, CEO of local crypto exchange Volabit, recently told news.Bitcoin.com.

Restriction But Not Prohibition

Mexican crypto exchange Bitso described in a blog post that “the circular is directed at banks and fintech [companies] regarding their operations with cryptocurrencies.” The exchange noted that “Banxico mentions that it seeks to take advantage of the use of the technology of these cryptocurrencies as long as they are used for internal operations of financial institutions,” emphasizing:

This does not mean that operations with cryptocurrencies are prohibited.

Bank of Mexico's Attempt to Regulate Crypto Is a Disaster, Exchange CEO Explains

Alvarez calls it a catch-22 situation since the law requires crypto exchanges to become regulated financial institutions. “However, once you obtain this license you would not have the authorization to list any cryptocurrencies, making it legally impossible to operate an exchange in Mexico with the fintech law in place,” he noted.

Interpretation of ‘Consumer’

Some of the rules Banxico imposes are not clear, however. Acosta Checa told news.Bitcoin.com:

Since the circular seems to have been written in a rush and without careful analysis and basic competence, it leaves to the interpretation of certain important things.

For example, in his interpretation, “financial institutions and foreign trade companies are not a ‘consumer’ and thus can operate freely” with his exchange. Isbit has already “shifted gears to serving businesses, corporations and institutions (which are allowed to hold virtual assets in their balance sheets according to the previous bill published March 9, 2018). Thus we will not shut down or lose our most valuable customers,” the CEO emphasized.

Bank of Mexico's Attempt to Regulate Crypto Is a Disaster, Exchange CEO Explains

Nonetheless, Acosta Checa understands that, under the new rules, if his exchange wants to “continue serving final ‘consumers/the public’ we will need to appeal to the Amparo Law and ask a court to suspend the application of the circular published by the Bank of Mexico (not the entire bill passed by the previous government administration on March 9, 2018).” He clarified:

According to the March 9th bill passed by the [Mexican] congress, we have permission to operate with ‘consumers’ till September.

Damaging the Economy

The CEO of Isbit believes that the new crypto asset rules will negatively impact the country’s economy as a whole. He explained that “Mexico is the endpoint to the biggest remittance corridor in the world (second largest population of migrants), the 6th most visited country by tourists and [is the] country with the largest number of free trade agreements.” Therefore, the country “has a lot to gain from the industrial application of virtual assets (activos virtuales) to facilitate free trade, tourism and financial inclusion,” Acosta Checa detailed, concluding:

The impact goes beyond the crypto industry. I believe it damages the economy as a whole.

What do you think of the rules set by the central bank of Mexico? Let us know in the comments section below.


Images courtesy of Shutterstock.


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The post Bank of Mexico’s Attempt to Regulate Crypto ‘Is a Disaster,’ Exchange CEO Explains appeared first on Bitcoin News.

Bitcoin News

And the Year’s Most Admired Man Is…

December 28, 2016 |

The most admired men of 2016: the president and the president-elect. Gallup left the survey question open-ended, and 22% of respondents said they most admired President Obama, followed by 15% who named Donald Trump. Obama has topped the poll nine years running, but Gallup notes this year is his narrowest…
Newser

Dancing with the Stars Season 22: And the Winner Is… – E! Online

May 25, 2016 |

E! Online

Dancing with the Stars Season 22: And the Winner Is…
E! Online
After one of the closest final rounds ever, season 22 of Dancing with the Stars has named its champion, and that mirrorball trophy could not have gone to a more deserving dancer. Congratulations to…Nyle DiMarco and Peta Murgatroyd! The deaf America's …
Emma Slater's 'DWTS' Blog: Based On Final Dances, The Winner Is…Hollywood Life (blog)
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Dancing with the Stars Season 22: And the Winner Is… – E! Online

May 25, 2016 |

E! Online

Dancing with the Stars Season 22: And the Winner Is…
E! Online
After one of the closest final rounds ever, season 22 of Dancing with the Stars has named its champion, and that mirrorball trophy could not have gone to a more deserving dancer. Congratulations to…Nyle DiMarco and Peta Murgatroyd! The deaf America's …
'DWTS' Finale Recap — Who Took Home The Mirrorball Trophy?Hollywood Life
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And the Winner of Survivor: Kaoh Rong Is… – People Magazine

May 19, 2016 |

People Magazine

And the Winner of Survivor: Kaoh Rong Is…
People Magazine
Winning this season wasn't easy. There were three medical evacuations – the most in Survivor history. At the beginning of Wednesday night's episodes, there were four contestants left – and each had a strong argument for why they should win the game.
Uneven 'Survivor: Kaoh Rong' Finale Mutes An Otherwise Strong SeasonHollywood Reporter
'Survivor: Kaoh Rong' Finale Recap: Who Won the Million Dollars?Us Weekly
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