Craig Wright, an Australian computer scientist who has long and falsely claimed to be Bitcoin’s creator, Satoshi Nakamoto, has been found in contempt of the UK’s High Court. This verdict stems from Wright’s violation of a court order that prohibited him from initiating or threatening legal actions related to Bitcoin. As a consequence, he has been sentenced to 12 months in prison, suspended for two years.
Wright’s assertions of being Satoshi Nakamoto have been a subject of controversy since he first made the claim in 2016. In March 2024, the UK’s High Court ruled that Wright is not the creator of Bitcoin, with Justice James Mellor stating that Wright had lied extensively and forged documents to support his false claims.
Despite this ruling, Wright proceeded to file a lawsuit in October 2024 against several Bitcoin developers and companies, including Block (formerly Square), founded by Jack Dorsey. The lawsuit sought damages exceeding £900 billion (approximately $1.2 trillion), alleging infringement of intellectual property rights related to Bitcoin.
The Crypto Open Patent Alliance (COPA), a non-profit organization advocating for open access to cryptocurrency technologies, brought the contempt proceedings against Wright. COPA argued that Wright’s October lawsuit directly violated the court’s March injunction, which barred him from pursuing any legal actions based on his claim of being Satoshi Nakamoto or owning related intellectual property rights.
Justice Mellor found Wright in contempt of court, describing his actions as a “flagrant breach” of the earlier order. The judge emphasized that Wright’s continued legal threats and filings, despite clear judicial prohibitions, undermined the authority of the court and warranted significant penalties.
Wright was sentenced to a 12-month prison term, suspended for two years, meaning he will not serve time unless he commits further violations within the suspension period. Additionally, he was ordered to pay £145,000 in legal costs.
The suspended sentence serves as a stern warning: any further attempts by Wright to initiate or threaten legal action concerning Bitcoin could lead to immediate imprisonment. This outcome underscores the judiciary’s commitment to enforcing its orders and deterring frivolous or malicious litigation that could stifle innovation within the cryptocurrency space.
Wright, who reportedly did not attend the contempt hearing in person, has indicated plans to appeal the ruling. He continues to assert his identity as Satoshi Nakamoto, despite multiple legal findings to the contrary. His persistent claims and the resulting legal battles have cast a long shadow over his credibility within both the legal system and the cryptocurrency community.
The court’s decision not only penalizes Wright but also reinforces the importance of adhering to judicial orders. It sends a clear message that the legal system will not tolerate attempts to misuse litigation as a tool for harassment or to propagate false narratives.
This case highlights the challenges faced by the cryptocurrency community in dealing with individuals who make unsubstantiated claims about foundational aspects of digital currencies. Wright’s actions have led to significant legal expenses and have diverted attention from productive development within the space.
Organizations like COPA play a crucial role in protecting the open-source nature of cryptocurrency technologies, ensuring that developers can work without fear of unwarranted legal reprisals. The court’s enforcement of its injunction against Wright supports the broader goal of fostering innovation and collaboration in the cryptocurrency industry.
The High Court’s finding of contempt against Craig Wright, along with the suspended prison sentence, marks a significant development in the ongoing saga of his disputed claims to the identity of Satoshi Nakamoto. This ruling not only holds Wright accountable for his disregard of court orders but also serves to protect the integrity of the legal process and the open-source principles that underpin the cryptocurrency ecosystem.
As the situation evolves, it remains to be seen whether Wright will comply with the court’s directives or face further legal consequences. For the cryptocurrency community, this case underscores the importance of vigilance against false claims and the misuse of legal systems to impede technological progress.