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Self-Described Bitcoin Inventor Ordered To Pay $100M In Damages

Self-Described Bitcoin Inventor Ordered To Pay $100M In Damages

An Australian computer scientist who claims he invented Bitcoin has landed in trouble.

The self-described Bitcoin inventor was told by a U.S. jury to pay $100 million in damages over claims that he cheated a deceased friend over intellectual property for the cryptocurrency.

Jurors in Miami federal court took about a week to reach Monday’s verdict, following about three weeks of trial. The jury rejected most claims against Craig Wright and the outcome probably won’t resolve the debate over whether Wright is the mythical creator of the peer-to-peer currency, Satoshi Nakamoto.

The brother of computer security expert Dave Kleiman, who died in 2013, alleged that the late Florida man worked with Wright in his early years creating and mining bitcoin. As a result, the plaintiffs claimed that the asset was entitled to half of the 1.1 million bitcoins in cash, worth approximately $70 billion, believed to be held by Satoshi.

Some cryptocurrency investors view Wright as a fake, and the years-long lawsuit in Florida has done little to pacify suspects. Wright has announced in court several times that he invented bitcoin, as he had previously done in news interviews. If the jury’s verdict had gone against Wright, he would have been forced to produce Satoshi’s fortune. For some invigilators, this will be the perfect test.

Self-Described Bitcoin Inventor Ordered To Pay $100M In Damages Agnesisika blogAfter the verdict, Wright said, “I’ve never felt so relieved in my life.” He said he would not appeal. He also said that he felt right and that the verdict proved that he was the creator of bitcoin.

“The jury has clearly found that I am because otherwise there would have been no award,” he said. “and I am.”

Devin Friedman, an attorney at the Kleiman Estate, described the decision as “a landmark precedent in the innovative and transformative industry of cryptocurrency and blockchain.”

“Several years ago, Craig Wright told the Kleiman family that he and Dave Kleiman developed revolutionary bitcoin-based intellectual property,” he said in a statement. “Despite those confessions, Wright refused to give Clemons his fair share of what Dave helped create.”

The jury found Wright liable for the conversion — the illegal acquisition of assets — and indemnified W&K Info Defense Research LLC, the entity through which Kleiman and Wright should have worked together.

In the argument closed to the jury, Friedman stated that Wright “planned and conspired with forgery and lies to steal from his dead best friend”.

In addition to the bitcoin mining the estate claimed the friends did together, Kleiman helped Wright build the intellectual property behind the $252 billion early blockchain technology.

Wright argued that Dave Kleiman’s brother Ira’s claims were fabricated. He testified that his friend did not help him launch the cryptocurrency and argued that there was no paper trail showing that they had a partnership.

“The truth has a gravitational pull,” Wright’s lawyer Andres Rivero told the jury, noting that there was not a single communication with his client that mentioned a bitcoin partnership while Kleiman was still alive.

The case is Kleiman v. Wright, 18-CV-80176, US District Court, District of Southern Florida (Miami).

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