In a groundbreaking decision on March 14, 2024, Judge James Mellor of the United Kingdom dismissed Australian computer scientist Craig Wright’s decade-old claim of being Satoshi Nakamoto, the anonymous creator of Bitcoin (BTC).
The ruling came after a long legal battle between Wright and the Crypto Open Patent Alliance (COPA), a coalition of prominent cryptocurrency companies seeking to prevent Wright from asserting his ownership over Bitcoin’s core intellectual property.
COPA filed the case against Wright in 2023, alleging that he had engaged in widespread forgery of documents to support his claims of being Nakamoto. They sought injunctive relief to prevent Wright from further asserting his identity as the Bitcoin creator, which could have had significant implications for the cryptocurrency industry.
The closing arguments in the high-profile case began on March 12 in London, with COPA’s legal team strongly criticizing Wright’s credibility. The alliance’s legal team concluded by stating:
“In the end, Mellor’s ruling was clear and unequivocal, stating that Wright had not provided any credible evidence to support his claims of being Nakamoto. He dismissed Wright’s assertions and supporting documents as unreliable, effectively putting an end to his long-standing attempts to claim ownership over Bitcoin’s design intellectual property. Mellor concluded the proceedings by stating:
“Dr. Wright is not the author of the Bitcoin white paper. Dr. Wright is not the person who adopted or operated under the pseudonym Satoshi Nakamoto between 2008 and 2011. Dr. Wright is not the person who created the Bitcoin system… he is not the author of the initial versions of the Bitcoin software either.”
The Mystery of Satoshi Nakamoto
The identity of Nakamoto has been a topic of intense speculation and debate within the cryptocurrency community for over a decade. This has become especially true as the digital currency revolution has gained momentum, with the industry’s total market capitalization reaching nearly $3 trillion in recent weeks.
While many individuals have claimed or been linked to Nakamoto’s identity over the years, Wright’s claims have been among the most persistent and controversial.
Wright first made his claim publicly in 2016, presenting what he claimed to be cryptographic evidence. However, the cryptocurrency community met this information with skepticism, as many experts questioned the validity of his evidence and pointed out inconsistencies in his accounts.
Despite the initial doubt, Wright continued to assert his identity as Nakamoto, presenting what he said was additional evidence, including early Bitcoin coding samples, personal writings, and other materials from the early days of Bitcoin’s development.
However, independent investigations and analyses by cryptography experts consistently cast doubt on the authenticity of Wright’s evidence. Many within the cryptocurrency community accused him of fabricating documents and misleading the public about his involvement in the creation of Bitcoin.
The COPA Lawsuit and Wright’s Legal Troubles
Due to Wright’s continued noise and the potential threat it posed to Bitcoin’s future, the Crypto Open Patent Alliance was established in 2020. Its purpose was to encourage the adoption and advancement of cryptocurrency-related technologies while removing any legal obstacles hindering the growth of the ecosystem.
As mentioned earlier, COPA filed a lawsuit against Wright and his associates in 2023, seeking to prevent him from claiming to be Nakamoto. During the trial, COPA presented a wealth of evidence and expert testimony challenging the validity of Wright’s claims and the authenticity of the documents he provided.
Forensic analysts and cryptography experts testified that many of Wright’s early Bitcoin materials showed signs of tampering and fabrication, further undermining his assertions.
In addition to his legal issues with COPA, Wright had previously sued 13 Bitcoin Core developers and a group of companies for alleged copyright violations related to the Bitcoin white paper, file format, and database rights to the Bitcoin blockchain.
However, many in the cryptocurrency community argued that Wright’s claims were baseless, as the Bitcoin white paper and codebase had long been considered open-source and freely available for use and modification by anyone.
The Bitcoin Legal Defense Fund, which was established to support the defendants in Wright’s lawsuits, condemned his actions as frivolous attempts to deter developers from contributing to the Bitcoin ecosystem. They argued that these lawsuits created an environment of fear and uncertainty, where developers risked costly legal battles simply for working on an open-source system like Bitcoin.
Implications for the Future of Bitcoin
Mellor’s ruling has significant implications for the cryptocurrency industry and the future of Bitcoin. By dismissing Wright’s claims, it reaffirms the decentralized nature of the digital asset, allowing the community to focus on the currency’s development and adoption without the looming threat of unfounded ownership claims.
Moreover, the ruling serves as a warning against fraudulent attempts to undermine the broader cryptocurrency ecosystem. Moving forward, the Bitcoin community is likely to shift its focus towards exploring new use cases and fostering greater mainstream acceptance rather than dealing with legal entanglements.