ONTIER: Bitcoin Creator Launches IP Claims Against Digital Currency Exchanges

London 3 May 2022 – Dr Craig Wright, the inventor of the first successful electronic cash system, Bitcoin, together with two companies associated with him, Wright International Investments Limited (WII) and Wright International Investments UK Limited (WIIUK), have filed intellectual property claims against two currency exchanges – Kraken and Coinbase (NASDAQ: COIN) – for misrepresenting that the digital asset “Bitcoin Core” (BTC) is Bitcoin.

The Claimants assert that these exchanges, and others, have been trading – and encouraging investors and consumers to trade and invest – in BTC, by passing off that asset as Bitcoin, despite it only having been created in 2017 as a software implementation which is different from and separate to the Bitcoin protocol which Dr Wright fixed when he first created the electronic cash system more than 13 years ago. The only digital asset that remains true to the original Bitcoin protocol is “Bitcoin Satoshi Vision” (BSV) which is the software implementation of the original Bitcoin protocol. The Claimants contend that this misrepresentation by Coinbase and Kraken has led to confusion among digital currency asset holders as to the authenticity of the assets many have purchased and traded in.

The Claimants seek an injunction restraining the defendants from promoting BTC as Bitcoin, through improper use of the Bitcoin sign or any visually similar sign or wording.

The claims are likely to be worth several hundred billions of pounds when an inquiry into the full account of profits of each of these exchanges is undertaken by expert witnesses to the Court.

The proceedings were filed on 29 April 2022 in the Intellectual Property List of the Business and Property Courts of England and Wales. They are the first in what will be a series of claims against each of the largest digital currency exchanges, designed to prevent future misperceptions as to the true operational nature of Bitcoin.

Bitcoin (BSV) is the fastest, most scalable environmentally efficient and regulation-friendly public

ledger that exists whilst remaining fixed to Dr Wright’s original protocol. Dr Wright is concerned for no other digital asset to improperly cloak itself under the Bitcoin moniker.

Simon Cohen of ONTIER said:

“These actions are undoubtedly game-changing for the digital asset market. Simply put, the Claimants’ assertion is if your digital asset doesn’t strictly adhere to the Bitcoin protocol and is linked to the Bitcoin blockchain it is not Bitcoin, and should not be marketed or referenced as such. Product choice is a vital driver of innovation – but asset-holders must be aware of exactly what they are buying and stability comes from transparency. Bitcoin was always designed to be a peer-to-peer electronic cash payment system, not a store of value. While this is quite likely the highest value claim to have ever come before the English courts, in fact the arguments in support of our clients’ position are straightforward and verifiable.”

Dr Wright, WII and WIIUK are advised by ONTIER LLP Partners, Derek Stinson and Aoife Keane,

Managing Associate, Simon Cohen and Associate, Tom Leach. Alastair Wilson QC, Michael Hicks and

Jamie Muir Woof of Hogarth Chambers are instructed as Counsel, with additional assistance from

Harcus Parker Partner, Damon Parker.

ENDS

Notes to Editors:

Dr Wright wrote the White Paper “Bitcoin: A Peer-to-Peer Electronic Cash System” and published it in October 2008 under the pseudonym, Satoshi Nakamoto. He was involuntarily outed as Satoshi by Wired magazine in December 2015.

The claimants recognise the regulatory responsibilities held by those exchanges that are listed on

NASDAQ in respect of these proceedings.

This litigation is the latest in a series of legal claims issued by ONTIER LLP on behalf of Dr Wright and his associated entities to uphold his right to protect his lawfully-held digital assets, his reputation as the creator of Bitcoin and his associated intellectual property:

  • In 2021 ONTIER successfully brought a copyright claim against the anonymous digital currency enthusiast operating under the pseudonym “CØbra”).
  • Last year ONTIER also launched a landmark claim against the developers of BTC, BCH, BCH ABC and BSV to restore control to addresses containing Bitcoin and other digital assets. The defendants’ jurisdictional challenge to this claim is currently being appealed by the claimant, Tulip Trading Ltd (the trust beneficially owned by Dr Wright and his family).
  • 23/24 May 2022 sees the London High Court trial of Dr Wright’s defamation claim against bitcoin commentator Peter McCormack.
  • Similarly, ONTIER is instructed by Dr Wright in his English defamation action against digital currency enthusiast, Magnus Granath, the trial of which is likely to be heard in late 2023.
  • ONTIER is also advising Dr Wright on his defence and counter-claim in respect of the Crypto Open Patent Alliance’s challenge to Dr Wright’s authorship of the White Paper which will likely be heard in 2023.

The firm is increasingly recognised for its high-profile and market leading Bitcoin related and cybercrime litigation and has an established and growing practice for recovering lost, stolen and hacked Bitcoin. The firm acted in successful English High Court proceedings against Reliantco Investments Ltd, a digital asset and securities exchange which blocked and seized a substantial amount from a client’s trading account. ONTIER LLP was able to recover the client’s full investment, its unrealised gains and loss of profit (that the client would have earned from intended investments had its funds not been unlawfully withheld).

ONTIER is recognised in the UK Legal 500 for commercial litigation, international arbitration and civil fraud. The firm has offices in 18 cities in 13 countries, giving a truly international capability.

We are recognised leaders in our field. We are proud to uphold the ethical and educational standards for the PR industry as members of the CIPR and PRCA.

Bell Yard Melanie Riley Bell Yard Melanie Riley

ONTIER Reaction to Bitcoin Developers’ Contesting Jurisdiction

·       ONTIER (on behalf of Tulip Trading Ltd) seeks to recover £3+ billion worth of Bitcoin 

·       Claim has significant implications for other users and the way Bitcoin operates

London, 25 March 2022

Litigation law firm ONTIER LLP responds to the judgment handed down by Mrs Justice Falk today. This follows a successful application by 13 of the 16 bitcoin developer defendants to challenge the English court’s jurisdiction in legal proceedings brought by Tulip Trading Limited (TTL), a Seychelles registered company, whose primary beneficial owner is Dr Craig Wright.   

Oliver Cain, Partner at ONTIER LLP comments:

“We are disappointed the English Court has granted the various Defendants’ applications and found that TTL has not established a serious issue to be tried on the merits of the claim in relation to whether or not developers owe fiduciary and tortious duties to those who have lost access to Bitcoin held on the networks which they control.  However, we note that the Judge did not reject TTL’s factual case. She held that the Defendants’ evidence was “certainly not sufficiently strong to enable me to conclude that TTL’s factual case was no more than fanciful”. She criticised the amount of evidence filed in respect of the facts of the case as “an unhelpful distraction”. 

We further note that the Judge found that TTL had the better of the arguments on the jurisdictional gateways and that England was the appropriate forum for the trial of the dispute.  In doing so, the Judge upheld TTL’s arguments that it is resident in the jurisdiction and that its Bitcoin is also located here.  The Judge also rejected the Defendants’ allegations that there had been material non-disclosure by TTL in its application for permission to serve out. 

“Nonetheless, the matter does not rest here.  The duties and responsibilities of developers are issues of the highest legal importance in a rapidly developing field that need to be fully aired and determined by an appellate court. As such, Dr Wright on behalf of Tulip Trading will seek leave to appeal today’s judgment.

The defendants in this unprecedented action are the developers of BTC, BCH, BCH ABC and BSV residing in various jurisdictions across the world including: Netherlands, Switzerland, Kitts and Nevis, France, Japan, numerous different states in the USA, New Zealand and Australia.

ONTIER was originally granted permission to serve all the developers out of the jurisdiction by the Business and Property Courts of the High Court in London, following a 173 page application submission detailing the claim.

ENDS

For further information please contact:

Bell Yard Communications:          O: +44 (0) 207 936 2021                  BellYard@Bell-Yard.com

Melanie Riley                                     M: +44 (0)7775 591244                   melanie@bell-yard.com

Notes to Editors:

Dr Wright is the inventor of Bitcoin who set out his vision for the digital currency in his famous White Paper under the pseudonym Satoshi Nakamoto. 

The litigation sought to examine, for the first time, the nature and extent of legal duties conferred upon and owed by developers resulting from the control they exercise over their respective blockchains.   

As detailed in the Particulars of Claim, TTL requested that the individual developers enable TTL to regain access to and control of its Bitcoin on the grounds that they, the developers, owe Bitcoin owners both tortious and fiduciary duties under English law as a result of the high level of power and control they hold over their respective blockchains.

In February 2020, Dr Wright’s personal computer was hacked by persons unknown and encrypted private keys to two addresses, which hold substantial quantities of Bitcoin belonging to TTL, were stolen. These assets were, and continue to be, owned by TTL. 

About ONTIER

ONTIER has an established and growing practice for recovering stolen and hacked Bitcoin. Its Partners, Oliver Cain and Derek Stinson, together with Felicity Potter (Senior Associate) and Nicholas Dawson (Associate), are advising TTL and instructed John Wardell QC, Bobby Friedman and Sri Carmichael of Wilberforce Chambers as Counsel on this matter.

This litigation is the latest in a series of legal claims issued by ONTIER LLP on behalf of Dr Wright and his associated entities to uphold his right to protect not only his lawfully-held digital assets, but also his reputation as the creator of Bitcoin and his associated intellectual property.

The firm is well known for its high-profile Bitcoin related litigation and has a highly regarded dispute resolution team. Its work is almost exclusively international and multi-jurisdictional in nature, focused on complex, high value international litigation, insolvency matters and arbitration in a wide range of financial and industry sectors. 

The firm acted in successful English High Court proceedings against Reliantco Investments Ltd, a digital asset and securities exchange, which blocked and seized a substantial amount from a client’s trading account. ONTIER LLP was able to recover the client’s full investment, its unrealised gains and loss of profit (that the client would have earned from intended investments had its funds not been unlawfully withheld).

ONTIER is recognised in the UK Legal 500 for commercial litigation, international arbitration and civil fraud.

The firm has offices in 18 cities in 13 countries, giving a truly international capability. 

https://uk.ontier.net/

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We are recognised leaders in our field. We are proud to uphold the ethical and educational standards for the PR industry as members of the CIPR and PRCA.

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