This week, Craig Wright, BitcoinSV progenitor and self-proclaimed Bitcoin creator, sent a Letter Before Action to Bitcoin Core contributors through his law firm, Ontier LLP.
Tulip Trading Ltd. mailed the letter demanding access to two wallets that contain 31,000 BTC and 79,957 BTC. The wallets are linked to the hack that dumped nearly 800,000 BTC on the world’s then most popular Bitcoin exchange in 2014. In the letter, Wright’s Tulip Trading Ltd. (TTL) demands access to two wallets which contain 31,000 and 79,957 BTC.
The wallets, curiously, are connected to the hack that drained 800,000 BTC from the world’s then most-popular bitcoin exchange in 2014. For this reason, a lawsuit like this is doomed to fail, said Steven Palley, a lawyer with Anderson Kill. Take all reasonable steps to ensure TTL has control of the BTC files in the Addresses.”
Recently, he threatened to sue Bitcoin Core contributors who hosted the Bitcoin white papers for copyright suppression on Tier LLP's behalf, who say the letter could manifest into legal action if the recipients do not comply. Despite the letter’s request, it is literally impossible for Bitcoin developers to seize funds in Bitcoin accounts they don’t own.
The cost of reorganizing Bitcoin’s blockchain timeline for a 51% attack will be in the millions, if not billions. For this reason, a lawsuit like this is doomed to fail, said Steven Palley, a lawyer with Anderson Kill. In my opinion, it appears unlikely that an open-source developer will be forced to split open-source blockchains in the interest of allowing Wright to receive funds that he claims were stolen.
The letter alleges that “on or around 5 February 2020, unknown hackers stole the private keys for the Addresses and deleted copies of the keys on Dr Craig Wright’s computer, preventing him from accessing the digital assets at those Addresses, which he operated on behalf of TTL.”
'Doomed to failure'
Craig Wright has made repeated headlines for his unsubstantiated claim that he is Bitcoin’s creator, Satoshi Nakamoto, and he has even sued those who have challenged this claim. Palley said that the claim that open-source developers owe Wright breach of contract claims and damages in the absence of a contract is “novel” and he cautioned that his argument “does not hold water.”
Ontier Something went wrong. Please try again later. Several people have already expressed outrage at this maneuver, and we expect to hear more,” Palley concluded. I . Despite launching legal proceedings against Bitcoin contributors over hosting the Bitcoin white paper, Wright has now moved on to targeting bitcoin connected with the Mt. Gox hack. Wright contacted Bitcoin Core contributors this week through his law firm, Ontier LLP.
TTL demands access to two wallets containing 31,000 BTC and 79,957 BTC. These wallets appear to be connected to the hack that drained 800,000 BTC from the second most popular bitcoin exchange in the world in 2014.”
“According to the letter, “Each of the Developers are according to their fiduciary duties required to: a. Provide access to the TTL of the Bitcoin in the Addresses, which they own but cannot gain access or control due to theft and hack. [It] will do nothing more than force people to pay legal fees – all of which are likely going to be owed by Wright.”
Palley said that the claim that open-source developers owe Wright fiduciary obligations and damages for losses in absence of a contract “is novel and faces considerable legal and factual problems.”
Something went wrong. Please try again later. A letter dated February 8, 2020 alleges that “around that time, unknown hackers stole the keys for the Addresses, which could not be used by Dr Craig Wright, who was assigned these addresses to represent TTL.” In addition to making repeated headlines for his claims of being Satoshi Nakamoto, Craig Wright has sued those who have challenged his claims of being his real name. We’ve already heard from some people who are outraged by this maneuver and expect to hear from more,” Palley concluded.