The bitcoin market could lose about $6 billion in a flash sale, according to Craig Wright.
The Bitcoin SV founder, who claims to be the creator of the Bitcoin protocol, said in an interview to Modern Consensus that a court order has directed him to hand over 500,000 bitcoin to Ira Kleiman, brother of Wright’s deceased partner Dave Kleiman. Stating that Ira would want to cash-out those winnings, Wright warned that his sell-order would eventually crash the bitcoin market.
“[Ira] doesn’t actually need [bitcoin] but he wants it,” Wright explained. “Everyone might want to start praying, because I complied with courts and that might get scary really, really quickly. The courts ruled that Ira inherited the $5 billion. Now he has to pay estate tax on that if he wants it.”
The warnings came after Wright lost a lawsuit filed by Dave’s estate. They had accused Wright of stealing half the bitcoins both he and Dave had mined before the latter’s death in April 2013. A general conception is that Wright still has his part of bitcoins and that he is now liable to handle his half to Ira as a compensation. But not a soul knows how many bitcoin Wright is holding as of now.
Wright, on the other hand, claimed that he had lost access to the said funds. He claims that he put all his bitcoin in a blind trust soon after he realized the cryptocurrency’s use in illegal online operations. The same bitcoins also hold the proofs that Wright is the real Satoshi Nakamoto, a claim he has continuously made but has been unable to prove so far.
Wright told the Florida court that he would receive a sliced decryption key through a bonded courier in January 2020. Meanwhile, Judge Bruce Reinhart ruled that Wright’s story is “inconceivable.”
“During his testimony, Dr. Wright’s demeanor did not impress me as someone who was telling the truth. When it was favorable to him, Dr. Wright appeared to have an excellent memory and scrupulous attention to detail. Otherwise, Dr. Wright was belligerent and evasive,” Reinhart said.
But many believe that Wright does not hold any of bitcoins that initially belonged to Satoshi Nakamoto – and his tactics of warning investors about a potential market dump are misleading at its best.
Lots of chatter about Craight Wright’s bitcoin crashing the market. Odds of that happening seem to be around zero.
— Alex Krüger (@krugermacro) August 28, 2019