Courts have ruled that Craig Wright must surrender half of his Bitcoin holdings and intellectual property to the estate of Dave Kleiman. This Monday, resolution was given on a $10 billion lawsuit registered by the brother of the late Dave Kleiman.
The ruling will apply to holdings and intellectual property predating 2014, and represents a big win for the plaintiffs. The lawsuit was originally filed after the plaintiffs realized that Craig Wright was attempting to seize their late family member’s Bitcoin holdings.
The case has not yet concluded, as the mechanics of the collection of assets and other procedures that become more complicated with the involvement of Bitcoin still needs to be planned out.
However, Wright will not be permitted to have a jury trial nor oppose the ruling. He may appeal or file exceptions/objections, but the main aspects of this case have been resolved and it is expected to be adopted by the District Judge.
A Definitive Ruling
Kleiman passed away in 2013 after being an integral part in the early spreading of the Bitcoin community. Craig Wright was his business partner and offered to help his estate sell the Bitcoin, but allegedly defrauded the estate.
The judge did not rule on Wright’s controversial claim that he was Satoshi, however the ruling specified that he did not seem to be acting as a credible source. This was largely due to the fact that Wright perjured himself by putting forward falsified documents.
As the beneficiaries of Kleiman’s estate, the family will receive half of more than a million Bitcoins. This Bitcoin was jointly mined by Kleiman and Wright, and is valued at approximately $10 billion. That would place the value of the settlement in the $5 billion range, not including the intellectual property rights around Bitcoin’s software.
The Crypto Market
There are two likely effects of settling this lawsuit. First, it will take away some of the short-term uncertainty regarding Bitcoin. It did not help the cryptocurrency’s perception for fraud and controversy to be continually connected to to it. Now, the storm clouds will clear and the Bitcoin image may become (a little) more reputable.
However, the second effect is a steep drop in the price of Bitcoin as the Kleiman estate sells some of it to cover the tax liability due to the estate tax that will be triggered. It is not clear what the actual tax liability is, but with any bulk sale of Bitcoin there is usually a drop in price.
Regardless of the estate tax implications, the estate may decide to cash out on a significant amount of their cryptocurrency exposure. With approximately $5 billion in Bitcoin, they might rather diversify their holdings.
The price of Bitcoin hasn’t reacted to this potential situation and is still hovering just above $10k. This could be communicating market sentiments that the estate will slowly unload portions of their position so as to not miss out on gains. Time will tell what this development means for the crypto market at large, but a short-term unloading could be a great time for potential investors to get in.
Accepts customers from the USA
Offers 15 crypto coins to buy&sell including BTC, LTC, ETC, NEO and more
Trade on the world's leading social trading and investing platform
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Bank Transfer, Wire Transfer
Full regulations list:
The world's largest cryptocurrency exchange with over 2bn daily users
Innovative trading platform offering enormous range of crypto coins
Supports over 60 methods of payment including PayPal
Binance has grown exponentially since it was founded in 2017 and is now one of, if not the biggest cryptocurrency exchanges on the market.
Margin Trading with full legal compliance
Cex.io offers exchange of fiat currency for Bitcoin Ethereum, Tether, and 23 other cryptocurrencies, as well as Bitcoin/Ethereum trading against the USD.
Credit Card, Cryptocurrencies, Debit Card, Wire Transfer, skrill
Wide variety of instruments to trade in and diversify through
Personalized service at every stage of the client journey
Proprietary platform with various tools and features
ETX Capital is a leading spread betting and CFD broker that offers a diverse selection of markets, across FX, commodities, shares, and more.
Bank Wire, Credit Card, UnionPay, skrill
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.5% of retail investor accounts lose money when spread betting or trading CFDs with ETX. You should consider whether you understand how spread bets or CFDs work and whether you can afford to take the high risk of losing your money.
New Users Report 42% Possible Profits in Month 1
Offers Copy Trading to all its users
Get an Unfair Advantage with Advanced Algorithms
Safemoon Trader is a trading software offering users a wide range of cryptocurrency coins including SAFEMOON, DOGE and Bitcoin.
Credit Card, Debit Card, skrill
Full regulations list:
The broker offers access to a trusted MetaTrader trading system
Pricing is ensured to be completely transparent, also providing accuracy and speed
Trade a Wide Variety of Assets with Leverage up to 1:500
LonghornFX is a true ECN STP broker dedicated to delivering a superior trading experience to traders no matter their level of experience. Their services are based on transparency, innovation and efficiency, ensuring an unparalleled trading experience for all.
Bitcoin, Credit Card, Debit Card, Visa
LonghornFX offers high-leverage trading on a wide variety of assets. Trading with leverage carries a degree of risk which may result in losing more than your investments. Clients should practise risk management to protect themselves from losing more than they can afford when trading with leverage.