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Craig Wright Reportedly Must Give 50% of Mined Bitcoin to Kleiman Estate

Craig Wright Reportedly Must Give 50% of Mined Bitcoin to Kleiman Estate

Self-proclaimed Satoshi Nakamoto Craig Wright suffered a massive blow today when a judge recommended that he turn over 50% of the bitcoin he mined with his former business associate, deceased computer genius Dave Kleiman. The duo reportedly mined 1.1 million bitcoin from 2009 to 2011.

Florida federal judge Bruce Reinhart also ordered Wright give (to Kleiman’s estate) 50% of any intellectual property he had developed with Kleiman when the duo collaborated from 2008 until Kleiman’s death in 2013.

Wright confirmed the news himself in an interview, where he gloated that he’s still a bitcoin whale who owns more than $5 billion in bitcoin.

Judge: Craig Wright Committed perjury and falsified documents

bitcoin lawsuit craig wright dave kleiman
Dave Kleiman and Craig Wright allegedly mined 1.1 million bitcoin before Kleiman’s tragic death in 2013. | Source: YouTube screenshots

According to the Twitter account 22nd Century Crypto, the “judge rejected all CSW testimony” and found that Craig Wright had “perjured himself,” “lied,” and “falsified documents.”

Bad news BSV.




— 22nd Century Crypto (@22centurycrypto) August 26, 2019

Judge reportedly referred to Wright as Satoshi Nakamoto

That said, the judge apparently referred to Wright as “Satoshi Nakamoto” several times during the hearing and believed that he was involved in the creation of bitcoin.

Judge is being very fair and critical of each sides remarks.

CSW has been referred to as SN and linked to the creation of Bitcoin several times now

— 22nd Century Crypto (@22centurycrypto) August 26, 2019

Wright not fined or jailed despite alleged perjury

Despite Judge Reinhart’s alleged assessment that Wright had lied and perjured himself, he apparently decided not to fine Wright or throw him in jail.

That’s noteworthy because perjury is a third-degree felony in Florida punishable by up to five years in prison and a $5,000 fine.

While many on Crypto Twitter are wallowing in schadenfreude at this early defeat for Wright, keep in mind that the lawsuit is still ongoing.

The case is not over, only the contempt hearing. So we still haven’t gotten to the meat of the lawsuit.

A paperless entry of the proceedings was entered into the docket of the Kleiman v. Wright lawsuit but has not yet been made public.

CCN will post any updates as they become available. CCN is also awaiting comments from Craig Wright directly about today’s hearing.

craig wright bitcoin lawsuit kleiman

Judged: Wright ‘failed to present any credible evidence’

As it is, there were hints that the contempt hearing would not go well for Wright.

As CCN reported on Aug. 15, Judge Beth Bloom expressed annoyance at what she considered conflicting statements made by Wright. For the record, Bloom is not the judge who presided over today’s contempt hearing.

Specifically, Judge Bloom suggested that Wright had lied about who were the members of W&K Info Defense Research.

Judge Bloom concluded that Wright “failed to present any credible evidence showing that any of the parties he suggests are members of W&K.”

Moreover, Judge Bloom wrote that “the Court simply does not find the Defendant’s testimony to be credible” as to membership in W&K.

bitcoin lawsuit craig wright dave kleiman forged signatures
Dave Kleiman’s estate accused Craig Wright of faking Kleiman’s signatures to take unlawful possession of Kleiman’s bitcoin stash and intellectual property. | Source: Lawsuit exhibit

W&K (which presumably stands for Wright & Kleiman) was the Florida-based company that Wright and Dave Kleiman had collaborated on before Kleiman died in 2013.

Wright and Kleiman worked on blockchain and allegedly mined 1.1 million bitcoin during their five-year partnership. That bitcoin trove is now worth more than $11 billion.

Wright never shared that massive bitcoin fortune with Kleiman’s estate after he died, according to a 2018 lawsuit filed against him by Ira Kleiman, Dave’s brother.

Update: Craig Wright reacts to judgment: I still own $6 billion in bitcoin, baby!

Samantha Chang

Samantha Chang

Samantha Chang is a New York City-based financial editor who writes about crypto and business at CCN. She is a law school grad and an alum of the University of Pennsylvania. Email her at [email protected] or follow her on Twitter at Samantha_Chang.

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