The Man Who Claimed to Be the Inventor of Bitcoin Given Suspended Prison Sentence

We have reported previously (https://briefings.brownrudnick.com/post/102j3ab/who-is-the-inventor-of-bitcoin-we-do-not-know-we-do-now-know-who-it-is-not and https://briefings.brownrudnick.com/post/102j88f/english-high-court-ruling-wright-lied-about-being-inventor-of-bitcoin) on the case brought in the High Court of England & Wales by the Crypto Open Patent Alliance (COPA) against Craig Wright concerning Wright’s claim to be the inventor of Bitcoin who goes by the pseudonym Satoshi Nakamoto.  Wright was held not be the inventor of Bitcoin, and in fact had:

“lied to the Court extensively and repeatedly. Most of his lies related to the documents he had forged which purported to support his claim.”

Since then Wright seems to be getting himself into hotter and hotter water, culminating in being given a slightly early Christmas present of a suspended prison sentence.

In a decision made on 16 July 2024 (https://www.bailii.org/ew/cases/EWHC/Ch/2024/1809.pdf), the Court decided on the consequential orders that should be made following its substantive judgment.  The principle that Wright should pay COPA’s legal costs was not disputed, but there was a dispute on how much Wright should pay as an interim payment.  Reflecting the judge’s robust assessment of Wright, he ordered that Wright make an interim payment of £5.9m being 85% of COPA’s claimed costs.

Among other things, the judge held that Wright’s conduct of perjury and forgery should be referred to the Crown Prosecution Service to decide whether criminal proceedings should be brought against Wright.  Seemingly, however, Wright was in a hurry to roll the dice with the British criminal justice system as discussed further below.   

Among the other orders made at that hearing were that Wright, in summary, should cease asserting that he owns rights in Bitcoin and bringing claims anywhere against anyone alleging infringement of his (non-existent) rights in Bitcoin.  Notwithstanding this, in October 2024, Wright issued a claim BTC Core and Square Up Europe Ltd asserting that Wright owns the rights in Bitcoin and that the defendants were passing off BTC as Bitcoin.  The value of the claim was stated to be an eye-watering £911 billion.

COPA issued an application for contempt of court (a criminal offence) and, at a preliminary hearing six weeks ahead of the hearing, Wright was ordered to attend the hearing, scheduled for 18 December 2024, in person.  Less than an hour before the hearing was due to commence, Wright sent an email to the court saying that he was in Asia and could not afford to attend.  The hearing went ahead nevertheless.  The judge had no difficulty in finding Wright in contempt, recording (https://www.bailii.org/ew/cases/EWHC/Ch/2024/3315.pdf):-

“I have found, to the requisite criminal standard of proof, that Dr Wright committed each of the contempts alleged by COPA in their Grounds 1 to 5 inclusive.  Indeed, in my judgment, there is no doubt whatever that each of these contempts has been proved.”

The sentencing hearing took place immediately after and the written reasons for the judge’s decision handed down the following day (https://www.bailii.org/ew/cases/EWHC/Ch/2024/3316.pdf).  The case against BTC Core and Square Up Europe Ltd was struck out and Wright ordered to pay their costs in that case on an indemnity basis.  Further, Wright was sentenced to 12 months imprisonment, suspended for two years.  The term of imprisonment will be activated if, at any time in two years, Wright commits any further breach of the orders made against him.

Given his conduct to date it would seem likely Wright will continue to show contempt for the English judicial process, and it is perhaps a question of when, rather than if, the suspension will be lifted.  In those circumstances it would seem unlikely that Wright will step onto U.K. soil to enable an easy arrest to be made, and maybe an international arrest warrant will be sought.  The saga continues …