So there’s a court case happening right now for Billions of dollars in Bitcoin, and the way its going its likely that evidence could come out that will reveal information about Satoshi Nakamoto. Its being covered by major news publications like Fortune, Wallstreet Journal, Bloomberg, CoinmarketCap, and the Independent. Here’s what I have to say about a short squeeze
The case in brief:
A court in Florida is hearing a trial for possession of Bitcoin worth suspected roughly $70B. Ira Kleiman, the plaintiff, is defending the estate of his brother David Kleiman. David was a colleague of the defendant, Craig Wright, and suspected to work on a project he claims to be the Bitcoin whitepaper. Both parties in the case are constructing their arguments under the pretense that Craig Wright is Satoshi Nakamoto.
The plaintiffs are alleging that Wright stole Bitcoins and IP from his deceased partner Dave. The defendant is alleging that there was no formal partnership, and that Dave was simply a friend who helped at times but was not a partner in the creation of Bitcoin.
The suit is going on now, and new evidence surrounding Bitcoin’s creation is surfacing each day. Craig Wright is surrounded with mixed evidence regarding his satoshi-ness, with the biggest issue that he’s never signed with Satoshi’s keys publicly (although did sign privately, and his close associate Calvin Ayre tweeted that Craig Wright would provide Satoshi keys after the trial).
The discover process for Kleiman v Wright has dug up a myriad of documents relating to Craig Wright and his involvement with the development of the original Bitcoin :
ATO (Australian Tax Office) documents and testimony about Dr. Wright’s 2009 Bitcoin R&D spend
Deposition and documentary evidence which paint a picture of a complex structure of legal entities formed between 2009 and 2015 by Dr. Wright and related parties
2011 IP Licensing Agreement paid for with ~3% of total BTC supply (over 200,000 BTC) (page 20)
2012 Deed of Loan documents collateralized by 650,000 BTC from Dr. Wright owned entities (page 11)
2013 contracts for equity in Bitcoin related companies in exchange for 323,000 BTC (page 1)
The 2017 Tulip Trust Document which owns the rights to all of Dr. Wright’s assets which he will become eligible to control after June 2020 (page 27)
It seems as though there’s a misconception among crypto whales as to the likleyhood this trial could move markets. The trail could have signifiant short term price impacts on Bitcoin SV, a version of Bitcoin that Wright is heavily associated with and endorses as “the real bitcoin”. CW is a controversial figure and understandably many are hesitant to endorse him as Bitcoin’s creator.
Bitcoin SV is often overlooked because of its association with Wright, making it one of the most shorted cryptos. The findings in this case could eclipse market sentiment — there’s potential for both a short squeeze and a gamma squeeze.
There’s big trading implications to this trial, I think more people should be talking about trading this case and the possible price movements of Bitcoin SV.