UK court battle begins over Bitcoin creator Satoshi Nakamoto's identity
What's the story
A high-stakes legal battle is underway in the UK to determine the true identity of Bitcoin's creator, Satoshi Nakamoto.
Australian computer scientist Craig Wright (53) claims to be Nakamoto, but many are skeptical.
The Crypto Open Patent Alliance (COPA), supported by Jack Dorsey's firm Block and Coinbase, is suing Wright to officially declare he is not the creator of Bitcoin.
History
How did the Nakamoto-Wright identity crisis begin?
Bitcoin's creator, known as Nakamoto, published a paper titled "Bitcoin: A Peer-to-Peer Electronic Cash System" in 2008. It became the basis for the cryptocurrency.
They interacted with the first Bitcoin users but vanished in 2011.
In 2016, Wright claimed he was Satoshi but was unable to prove it, because he could not show private keys (a secure hexadecimal string of letters and numbers), required to access the original bitcoins mined by Nakamoto.
Those bitcoins are now valued at $47 billion.
Goal
COPA's motivation for the lawsuit
COPA hopes to stop Wright's challenges against Bitcoin-related projects by proving he isn't Satoshi Nakamoto.
The month-long trial is taking place at the high court in England and Wales.
A COPA representative said the case will "conclusively show that Dr. Wright is not Satoshi Nakamoto and will not be able to continue to threaten developers."
Issue
Wright's unsuccessful settlement offer
Recently, Wright offered to settle the dispute, but COPA turned him down.
They claim his proposal had loopholes "that would allow him to sue people all over again."
The trial's outcome could impact those working on Bitcoin projects and the wider crypto community, as it examines evidence from both sides, including allegations that some of Wright's proof is fake.
Legal
Arguments and counters
Representing COPA in court, lawyer Jonathan Hough KC said that Wright's claim was a "brazen lie and elaborate false narrative supported by forgery on an industrial scale."
He described elements of Wright's conduct as "farce" and accused him of doctoring documents to create a fake identity.
In response, Wright's attorney Lord Grabiner KC, insisted there was "clear evidence" demonstrating his creation of the cryptocurrency.
Grabiner claimed that if Nakamoto was someone else, they or their partners would have come forward.
Future
Potential impact of verdict on Bitcoin system
This trial could shape the future of Bitcoin and its related projects. Wright supports a version of the cryptocurrency called Bitcoin Satoshi Vision (BSV).
A spokesperson for Wright called the trial "a war," comparing it to past tech battles like Blu-ray versus HD DVD or Betamax versus VHS.
Wright is facing questioning for six days starting today, with the verdict next month potentially affecting Bitcoin's future.