Aussie who claimed to invent bitcoin held in contempt

An Australian computer scientist who claimed to be the founder of bitcoin has been found to be in contempt of an order of London’s High Court and sentenced to 12 months in prison, suspended for two years.

In a judgment on Thursday, Justice James Mellor said Craig Wright had committed “a clear breach” of the order in March that barred him from launching or threatening further legal action related to bitcoin, which has registered a meteoric rise in value since its launch around the time of the global financial crisis in 2008.

Lawyers for the Crypto Open Patent Alliance, or COPA, a group of technology and cryptocurrency firms, told the court on Wednesday that Wright had issued claims worth more than £900 billion ($1.8 trillion) in October from companies and individuals related to intellectual property rights connected to bitcoin.

The organisation argued that Wright’s actions constituted contempt of court as he had been ordered to refrain from making any claims related to bitcoin in March when a judge ruled that he was not, as he claimed, the mysterious creator of the digital currency nor the author of the initial versions of the bitcoin software.

Mellor said it was “beyond any reasonable doubt” that Wright had indeed been in contempt of the court order.

Wright, who according to court documents is in either Indonesia or Singapore, attended Thursday’s hearing by video link.

He did not attend the previous day’s session when COPA made its case.

He told the court he was in Asia but refused to specify which country after being asked by the judge.

Wright said “I still don’t believe that the areas that you have addressed are correct,” and that he “will be appealing” against the contempt finding, stating: “COPA are an organisation with one purpose - to sue me.”

For eight years, Wright had claimed that he was the man behind “Satoshi Nakamoto,” the pseudonym that masked the identity of the creator of bitcoin.

The murky origins of bitcoin date to the height of the financial crisis in 2008.

A paper authored by a person or group using the Nakamoto pen name explained how digital currency could be sent around the world anonymously, without banks or state currencies.

Nakamoto seemed to vanish three years later and their identity was never established.

In basic terms, cryptocurrency is digital money designed to work through an online network without a central authority - meaning it is typically not backed by any government or banking institution - and transactions get recorded with technology called a blockchain.

Bitcoin is the largest and oldest cryptocurrency although other assets like ethereum, XRP, tether and dogecoin have also gained popularity over the years.

Some investors regard cryptocurrency as a “digital alternative” to traditional money or gold but most daily financial transactions are still conducted using currencies such as the Australian dollar.

Wright, who first claimed he was Nakamoto in 2016, has been accused of seeking to profit from bitcoin’s huge spike in value.

At the start of the COVID-19 pandemic in early 2020, for example, bitcoin stood at just over $US5,000.

Earlier this month in the wake of the US election victory of Donald Trump, who is a big supporter of cryptocurrencies, it breached the $US100,000 level for the first time.

with PA