LONDON — Craig Wright, an Australian computer scientist who inaccurately claimed to be the creator of the bitcoin cryptocurrency, has been adjudged in contempt of a ruling made by London’s High Court. He has received a sentence of 12 months in prison, which has been suspended for a duration of two years.
In a decision delivered on Thursday, Justice James Mellor indicated that Wright had committed a “clear breach” of a court order issued in March. This order prohibited him from initiating or threatening further legal proceedings tied to bitcoin. The cryptocurrency has experienced significant growth since its inception around the time of the global financial crisis in 2008.
Representatives from the Crypto Open Patent Alliance (COPA), which is composed of various technology and cryptocurrency entities, informed the court on Wednesday that Wright had made claims amounting to more than 900 billion pounds (approximately $1.1 trillion) in October, leveraging intellectual property rights associated with bitcoin.
The organization contended that Wright’s conduct constituted contempt of court, as he had been specifically instructed to avoid making any claims linked to bitcoin in a March ruling. In that decision, Mellor asserted that Wright was not, as he had alleged, the elusive creator of the digital currency, nor the originator of its initial software versions.
Mellor expressed that it was “beyond any reasonable doubt” that Wright had indeed violated the court’s order. According to court documents, Wright, currently located in either Indonesia or Singapore, attended the Thursday hearing via video link but did not participate in the previous day’s proceedings during which COPA laid out its argument.
Following the ruling, Wright announced his intention to appeal the finding of contempt. He had maintained for eight years that he was the individual behind the pseudonym “Satoshi Nakamoto,” the name linked to the identity of bitcoin’s creator.
The origins of bitcoin are shrouded in mystery, tracing back to 2008’s financial crisis. A paper published by an anonymous individual or group using the Nakamoto name detailed a method for transmitting digital currency on a global scale independently of banks or national currencies. Three years later, Nakamoto disappeared, and their true identity has not been uncovered.
At its core, cryptocurrency is a form of digital money designed to operate through an online network devoid of central governance, meaning it generally lacks backing from any governmental or banking institution. Transactions are recorded using a technology known as blockchain.
Bitcoin is recognized as the largest and most established cryptocurrency, although others like ethereum, XRP, tether, and dogecoin have also gained traction over the years. Some investors perceive cryptocurrency as a “digital alternative” to conventional money; however, most everyday transactions continue to take place using traditional currencies such as the dollar.
Wright first claimed he was Nakamoto in 2016 and has faced allegations of attempting to capitalize on the significant surge in bitcoin’s value. For instance, at the onset of the COVID-19 pandemic in early 2020, bitcoin was valued at just above $5,000. In the latest developments following the election of Donald Trump in the U.S., who is known to be a supporter of cryptocurrencies, bitcoin soared past the $100,000 mark for the first time.
Nevertheless, the cryptocurrency market remains highly volatile. As of Thursday, bitcoin was trading at around $80,000, which represents a decline of nearly 20% within just a few weeks.
