Man Behind False Bitcoin Founder Claim Given Suspended Sentence

Craig Wright arrives at the Rolls Building, part of the Royal Courts of Justice, in London on Feb. 6, 2024. Dan Kitwood/Getty Images

Computer expert Craig Wright, who falsely claimed he invented bitcoin, has been sentenced to a 12-month suspended jail term by the High Court.

The court found Wright guilty of contempt after he defied a previous ruling banning him from filing legal claims related to bitcoin’s creation.

The ruling follows Wright’s longstanding efforts to position himself as Satoshi Nakamoto, the pseudonym of the cryptocurrency genius accredited with creating bitcoin.

Sued by the Crypto Open Patent Alliance (COPA), a non-profit group including large cryptocurrency firms, Wright was found in “clear breach” of a court order issued in March.

The court had found that Wright is not Satoshi Nakamoto, concluding that he had lied extensively and forged documents to support his claims.

The March order barred Wright from launching or threatening further legal action related to bitcoin, but COPA told a hearing on Wednesday that in October Wright issued a claim worth more than £900 billion related to bitcoin.

Mr. Justice Mellor said that therefore Wright was in contempt of court “beyond any reasonable doubt.”

The court heard on Wednesday that Wright’s latest claim, over intellectual property rights related to bitcoin, represented “multiple, clear breaches of the order.” The breaches were “impossible to remedy,” the ruling said, adding that Wright “has shown no remorse.”

Jonathan Hough, KC, representing COPA, said that bitcoin developers have been affected by Wright’s conduct.

“Bitcoin developers have once more had to suffer the distress and inconvenience of knowing or at least suspecting that Dr. Wright is attempting to sue them for huge sums of money and intending to use the proceedings to blacken their names.

“The order was made after careful judicial consideration to prevent this happening, and Dr. Wright’s conduct has so far denied developers the benefit of its protection,” he said.

He also described the defendant’s behaviour as a “desperate publicity stunt to keep his cultish supporters engaged.”

Wright’s Claims 

The pseudonym Satoshi Nakamoto first came to light in October 2008, when an individual used it to publish a groundbreaking paper that outlined the principles behind what would become the world’s most influential cryptocurrency.

In 2009, the bitcoin network was launched, with Nakamoto mining the first block, known as the Genesis Block. Bitcoin has since become the most successful and widely recognised cryptocurrency, but also known for its high volatility.

Wright’s claims to be Satoshi Nakamoto have been widely discredited within the cryptocurrency community and by legal authorities.

Commenting on the March ruling, COPA said in May that it was the “result of a concerted and united effort across the entire open source community” and thanked its members for their support.

Wright, who attended court on Thursday via a video link, said he was in Asia but didn’t specify his exact location.

While the court had previously rejected Wright’s application to attend by remote link, it was notified via an email less than an hour before the Wednesday hearing that the defendant would not be present in person.

In his email, Wright said that he doesn’t have the “means to be in the UK,” adding: “While my current work commitments involve international travel, and while I have the ability to travel for work purposes, this does not mean that I can presently base myself in the UK or meet the logistical requirements to appear in person at this time. That travel is paid as a part of the tasks I do.”

He told the court, “I still don’t believe that the areas that you have addressed are correct,” and that he “will be appealing” against the contempt finding, adding, “COPA are an organisation with one purpose—to sue me.”

The court ruled that Wright was to pay around £145,000 of COPA’s legal costs.

PA Media contributed to this report.