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Craig Wright won’t be paying BTC as focus shifts towards Tulip Trust

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The self-proclaimed Satoshi Nakamoto – Craig Wright, has been involved in an on-going case with David Kleinman. Wright had been sued by Ira Kleiman – the brother of Wright’s late business partner Dave Kleiman – for $10 billion, alleging that Wright was trying to seize Dave’s Bitcoin holdings that they had mined together.

Magistrate Judge Bruce Reinhart recommended that the Kleiman estate be awarded 50 percent of the bitcoin that Wright held before December 31, 2013, as well as 50 percent of the intellectual property that Wright owned prior to December 31, 2013.

The Kleiman v. Wright lawsuit continues this week with some interesting developments as a United States District Judge has ruled that the previous sanctions that require Wright to give up half of his bitcoin holdings to the Kleiman estate, will not stand.

As per the court documents filed in court on January 10, Judge Beth Bloom has stated that the previous sanction was not proper, because even if the court considers all the deemed facts regarding Wright’s share in this, the court believes that this issue would still remain “uncured,” as the court still does not know how much Bitcoin Wright owns.

The court, however, concluded that Wright would still be paying the legal fees for the Kleiman estate as they had filed a motion requesting legal costs of $658,000 in November last year.

The controversial Tulip Trust

Wright had previously refused to pay the 500,000 BTC settlement claiming that the funds were inaccessible to him as it was entrusted to the ‘Tulip Trust.’

Last month, documents from The Tulip Trust contract that surfaced and is allegedly signed and written by David Kleiman on June 9, 2011, states that On January 1st, 2020, Wright would supposedly receive the private keys from a bonded courier, for a wallet that contain close to 1.1 million Bitcoins.

When Wright was asked to disclose the public addresses he owned prior to December 31, 2013. He told the court that because the Tulip Trust is split into multiple keys, he cannot decrypt his file until he gets access to his key.

Previously, On January 9, court filings indicated that the plaintiffs were shown documents three days prior that describe a document called the “Tulip Trust III.” Following the discovery of the document, the depositions of Craig Wright, Ramona Watts, and Andrew O’Hagan were postponed.

The Bitcoins from the Tulip Trust is playing an important role, both in the on-going lawsuit and backing Wright’s claims of being Satoshi Nakamoto. Earlier Wright had said in a statement to Bloomberg News that he “cannot be certain that information will in fact arrive.”

Judge Bloom has decided to give Craig Wright more time in hopes that the bonded courier will arrive. Wright has until February 3, 2020, to tell the court whether or not he has access to the funds.

Anna Larsen
Anna Larsen has been a Crypto enthusiast since 2016. Fascinated by the technology and its usecases she decided to pursue a career in content creation related to this space. The journey has been exciting ever since.

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