Judge confirms ruling: Craig Wright to forfeits 50% of Bitcoin holdings.

An order has been filed in Craig Wright’s sanctions and contempt hearing.
Magistrate Judge Bruce E. Reinhart confirmed this in a court document published Tuesday, that the self-acclaimed inventor of bitcoin, Wright, must forfeit half his crypto mined which was done prior to 2014 to Ira Kleiman including half of his intellectual property. Attorney’s fees and relative expenses incurred in this motion will be paid by Wright as being ordered by the court.

According to the court findings, Wright had argued in bad faith, perjured himself and also admitted false evidence during the motion.

The ongoing trial has long begun in 2018, during the time Dave Kleiman , the brother of Wright’s late business partner alleged that Wright defrauded the family’s and sued for half the bitcoin holdings in the so-called Tulip Trust.

The magistrate stated thus:
Dr. Wright and David Kleiman developed Bitcoin intellectual property and to mine bitcoin on equal partnership at 50/50 level. Any Bitcoin-related intellectual property developed by Dr. Wright prior to David Kleiman’s death was property of the partnership. Again, all bitcoin mined by Dr. Wright before David Kleiman’s death “the partnership’s bitcoin” was property of the partnership when mined and Plaintiffs presently retain an ownership interest in the partnership’s bitcoin and any assets that is traceable to them as well.”

Wright’s argument was found to be in bad faith as he claimed that the bitcoin is inaccessible due to his former business partner’s death and encryption mechanism complication. Wright was alone given the sanctions, according to  Reinhart

Jason Gottlieb, partner at Morrison Cohen LLP, said the ruling was “atypical” and as such, the district judge overseeing the trial may likely not accept Reinhart’s decision without amendment.”
District Judge Beth Bloom said previously that Wright’s testimony was declared “inconsistent”.

Wright was represented by Rivero Mestre LLP while Kleiman was represented by Kyle Roche and Velvel Freedman of Roche Freedman LLP in the suit.

Further discovery for the trial may actually start soon as this ruling does determine liability. It is also expected that Kleiman , his business partner must inform him of the real costs due to him on or before September 20th.


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Credits: Daniel Kuhn


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