Tag: bitcoin

Dr Craig Wright, together with two of his associated companies, Wright International Investments Limited (WII) and Wright International Investments UK Limited (WIIUK), have filed and served a claim for infringement of database rights and copyright in the Bitcoin White Paper against all 26 individuals and entities involved in the promotion, development and use of Bitcoin Core (BTC).  

The Claimants assert that the Defendants in this claim have been developing, promoting, funding, trading – and encouraging investors and consumers to trade and invest in – digital cash known as BTC (Bitcoin Core), whilst throughout infringing the Claimants’ intellectual property rights in both the White Paper and the Bitcoin Blockchain on which these digital assets are based.

Dr Wright devised the Bitcoin System and issued the White Paper under the pseudonym “Satoshi Nakamoto” on 31 October 2008.  A number of the Defendants to these proceedings proposed significant changes to the Bitcoin System in 2016, which deviated from the protocols as set out in the Bitcoin White Paper.  On 1 August 2017, the BTC Network was created without the authorisation of the Claimants.

By participating in the operation of the BTC Network, it is the Claimants’ case that the Defendants have infringed the Claimants’ Database right which subsists in the Bitcoin Blockchain and infringed Dr Wright’s copyright which subsists in the Bitcoin White Paper by copying Block 230,009 in the Bitcoin Blockchain whilst making copies of the BTC Blockchain. 

According to Dr Wright, the only digital asset that implements the protocols as set out in the Bitcoin White Paper is “Bitcoin Satoshi Vision” (BSV).   

The Claimants seek an injunction restraining the Defendants from continuing to develop and/or participate in the promotion of BTC.  The Claimants also seek a declaration from the Court that database rights subsist in the Bitcoin Blockchain and that copyright subsists in the Bitcoin White Paper and that Dr Wright is the owner of it.  

Damon Parker of Harcus Parker, leading this claim on behalf of the Claimants, said:

“At its heart, this litigation is straightforward, in so far as it represents a claim for breach of database rights and copyright in the White Paper.   

“My clients simply assert their rights to the intellectual property underpinning Bitcoin.  For the digital asset market to gain widespread credibility, users need confidence in a sustainable digital currency underpinned by enforceable laws and regulation. This claim, in parallel with other claims brought by my clients, may prove a step in the right direction.” 

ENDS 

Issued on behalf of HARCUS PARKER by: 

Bell Yard Communications       BellYard@bell-yard.com            +44 (0) 20 7936 2021

Louise Beeson                         Louise@bell-yard.com               + 44 (0) 7768 956997

NOTES TO EDITORS

Dr Wright, WII and WIIUK are advised by Harcus Parker Partner, Damon Parker, alongside Associates, Olivier Altmeyer and Brad Pistorius.

If successful, the claim is likely to be worth several hundred billions of pounds when an inquiry into the full account of profits is undertaken by expert witnesses to the Court.

At a hearing on 3 February 2023, permission was granted by Mr Justice Mellor for the Claimants to serve the Defendants out of this jurisdiction, concurring there is an arguable case for the database claim.  Defendants are known to be based in USA, Canada, Australia, New Zealand, Ireland, The Netherlands, Switzerland and the UK.  The Claimants are seeking permission to appeal a judgment of Mr Justice Mellor in which he declined to allow a claim in relation to copyright in the Bitcoin file format to proceed.  

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 to ensure that no other digital asset improperly advances itself on the basis of unauthorised use of his substantial intellectual creativity, skill and labour over decades.

Dr Wright was involuntarily outed as Satoshi Nakamoto by Wired magazine in December 2015. Since then, he has faced unprecedented levels of harassment and disparagement by those who have a vested interest in supporting BTC and BCH.

In response to this persistent and pervasive abuse both online and in print, Dr Wright has sought to uphold his and his associated entities’ rights to protect their intellectual property in the Bitcoin eco-system, as well as his reputation as the creator of Bitcoin.  

As a result, there is a series of pending legal claims issued by lawyers across jurisdictions on behalf of Dr Wright and his associated entities which include:  

• Tulip Trading Ltd, a trust beneficially owned by Dr Wright has been granted permission by the English Court of Appeal to bring an action against developers of the BTC network to restore the Trust’s access to Bitcoin stored in an encrypted private wallet that was stolen in a hack on Dr Wright’s computers in 2019.
• Dr Wright and companies owned by him last year issued passing off claims in the High Court against exchanges Kraken and Coinbase.
• Dr Wright is bringing a defence to the Crypto Open Patent Alliance’s (COPA) challenge to his authorship of the White Paper, which will be heard in the High Court in early 2024.
• In May 2023, the High Court in London will hear Dr Wright’s defamation claim against digital currency enthusiast, Mr Magnus Granath, in England.  
• In September 2023, the Court of Appeal in Oslo will hear Dr Wright’s appeal of the November 2022 judgment that determined Mr Granath’s campaign of disparagement of Dr Wright through social media was not defamatory under Norwegian law. 
• In 2022 the London High Court found that podcaster Peter McCormack had defamed Dr Wright – the costs awarded are currently being appealed.
• In 2021 Dr Wright, successfully brought a copyright claim against the anonymous digital currency enthusiast operating under the pseudonym “Cøbra”. Enforcement of this judgment is ongoing, with the court recently concurring with Dr Wright that no individual can take part in proceedings for detailed assessment of costs whilst declining to inform the court of their identity.

In addition, in December 2021 Dr Wright successfully defended a claim brought in Florida, USA, by Ira Kleiman, brother of Wright’s late friend Dave Kleiman, who predicated the claim on the fact that Dr Wright is Satoshi Nakamoto, but that Wright created Bitcoin with the help of Dave Kleiman.  The jury rejected that allegation.

London, 14 March 2023

Contact Bell Yard today

The latest battle of the handbag, aka the high-stakes lawsuit brought by French luxury design house Hermès in the US against the artist Mason Rothschild over his ‘MetaBirkin’ NFT collection was hardly going to go unnoticed. Not only did the subject matter offer great headline and photo opportunities for business, tech, crypto, art, fashion and legal news outlets alike, but there were important principles at stake for the burgeoning world of NFTs and luxury brands. 

Some say Hermès took a risk filing such a dispute to be heard before a jury and taking on the so-called artistic community. However, its success in protecting its brand was a legal and reputational triumph setting a precedent for other brands and NFT creators in the relationship between digital art, NFTs and the physical fashion it purports to replicate. 

The Birkin handbag

Hermès was established in 1837 and, inter alia, they are known for designing and producing the iconic and highly sought after Birkin handbag. The Birkin handbag has been synonymous with high fashion, exclusivity and wealth since it burst onto the cultural scene in 1984 with its value being seen through the two-year-long waiting list and the hundreds of thousands of pounds each one can fetch at auction. Unsurprisingly, Hermès owns trademark rights for the “Hermès” and “Birkin” marks as well as trade dress rights in the design of the handbag.

‘MetaBirkin’

The artist Rothschild, whose real name is Sonny Estival, began selling ‘MetaBirkin’ NFTs in 2021 that portrayed the highly coveted Birkin handbag adorned with various eccentric items like fur, tusks and even a Santa hat, rather than the typical leather of the genuine Hermès handbag. He intended this as a comment “on the animal cruelty inherent in Hermès’ manufacture of its ultra-expensive leather handbags”. The NFT collection proved a hit with fans shown through the range reportedly making over $1 million for Rothschild through online sales. 

See you in court

Hermès filed a lawsuit in January 2022, arguing that consumers only purchased Rothschild’s NFTs because the Birkin name wrongly led them to think the product was endorsed by Hermès.

In response, Rothschild argued that his ‘MetaBirkin’ NFT project was an “artistic experiment” that commented on society’s adoration of luxury goods and its displays of wealth. He adopted a fair use defence in line with the First Amendment of the U.S. Constitution, referring to the example of Andy Warhol’s depictions of Campbell’s soup cans. 

Furthermore, Rothschild relied on the ‘Rogers’ legal test from the landmark Rogers v. Grimaldi case from 1989 that allows trademarks to be used without permission being granted so long as a) the title of the work has some artistic relevance to the underlying work and b) that the title is not explicitly misleading as to the source of the content of the work. However, Hermès claimed that these NFTs were not only created purely for financial gain and not protected under free speech as an artistic expression but they also diluted the Birkin name and violated Hermès’ trademarks. Hermès further argued the ‘MetaBirkin’ experiment had damaged its future prospects in the NFT world where other luxury brands are already active. 

Hermès wins

On February 8, the jury in the Southern District of New York reached its finding that Rothschild’s unauthorised versions of the Birkin handbag constituted trademark infringement, trademark dilution, and cybersquatting, since Rothschild used the ‘MetaBirkins.com’ domain name that was deemed confusingly similar to that of the luxury fashion house. Hermès was awarded US $133,000 in damages.

Interestingly, the jury also found that Rothschild’s unauthorised use of the Birkin handbag as an NFT was not a protected form of speech under the First Amendment of the U.S. Constitution as it was explicitly misleading to consumers. The jury found that the ‘MetaBirkin’ was more akin to consumer goods, which are subject to trademark regulations, than free speech-protected works of art, and that Rothschild did this to profit from Hermès’ goodwill.

NFT legal precedent

Whilst Hermes can now claim that it fiercely defends its brand from replicas in both the real and virtual worlds, this lawsuit also has implications for the wider world of NFTs. The ruling has been reported as a blow to creators looking to use online space to sell replications of established brand products for financial gain, representing a win for IP protection for luxury brands in general. One headline even went so far as to report that the judgment meant NFTs are not art.

Clearly, there will be further cases in this new frontier where technology and art – and the legal principles to be applied – collide. Meantime, this case offers various other lessons and consideration points.  Commentary in established media was, unsurprisingly, more pro-Hermès than the spectrum of debate on social media, where the David v Goliath battle was sometimes viewed more sceptically. It highlights not only the threat to big brands but also the potential for a new realm of customers that this new technology can bring.

Crypto Experience

By Declan Flahive

22/02/2023

Bell Yard advises ONTIER, the firm whose client, Dr Wright, authored the Bitcoin White Paper, under the pseudonym, Satoshi Nakamoto, creating the blueprint for a new digital asset over 15 years ago.

Having been ‘doxxed’ as Satoshi in 2015, he faced relentless online hostility from individuals and entities with a vested interest in alternative digital coins. Dr Wright soon determined to prove his identity through the courts, establishing and enforcing his copyright in the White Paper and numerous patents relating to the blockchain.

Bell Yard’s role has been to promote ONTIER’s incremental successes in the English legal cases being brought and/or challenged by the firm on Dr Wright’s behalf, so as to marginalise the online abusers and to achieve public recognition, through court judgments, that Dr Wright is indeed who he says he is.

We work in close conjunction with Dr Wright’s personal PR team, while remaining dedicated to our task of promoting the litigation outcomes. 

We are currently advising on the communication around a ground-breaking action against 16 bitcoin developers to establish their duty to restore access to stolen/lost private keys to those who can demonstrate, to the satisfaction of a court, their ownership of the wallet in which digital currency is stored.   We also support ONTIER in the various copyright infringement cases ongoing, as well as defamation actions in UK and Norway.  Running in parallel is a huge case (brought by ONTIER on behalf of an entity beneficially owned by Dr Wright), against digital currency exchanges Kraken and Coindesk, valued in the hundreds of billions of pounds.

Summary

Not only are these various litigations complex, involving multi-parties across multiple jurisdictions, they are also at the cutting edge of digital currency development, with Bitcoin gaining increasing traction towards mainstream acceptance.  There can be few litigation PR instructions of such novelty and magnitude and we remain fortunate to be advising such a creative and brilliantly innovative legal team and end client.

Bell Yard’s contact details can be found here.

Rt. Hon. Lady Justice Andrews DBE has granted permission for ONTIER LLP client, Tulip Trading Ltd, to appeal the judgment handed down by Mrs Justice Falk of 25 March 2022 denying jurisdiction over a claim for breach of fiduciary and tortious duties. Tulip Trading Ltd, a Seychelles registered company, whose primary beneficial owner is Dr Craig Wright, is seeking to bring proceedings in the English High Court against 16 bitcoin developer defendants, 13 of whom had challenged jurisdiction leading to Mrs Justice Falk’s judgment upholding their challenge.

However Lady Justice Andrews in granting the appeal recognised the importance of the issues in the claim, saying:

“The issue as to whether Developers owe duties of care and/or fiduciary duties to the owners of digital assets and if so, what is the nature and scope of those duties is one of considerable importance and is rightly characterised as a matter of some complexity and difficulty.  Given that in addition to its complexity and difficulty the underlying facts will play a significant role in determining that issue, it is arguable with a real prospect of success that it is not susceptible of summary determination in the context of a challenge to the jurisdiction, and therefore that the Judge fell into error in deciding that there was not even a serious issue to be tried and in the approach she adopted.”

Oliver Cain, Partner at ONTIER LLP comments:

“We are grateful that Lady Justice Andrews recognised the wider importance of establishing in law the responsibilities of developers of digital assets to end users. The complex and fact-heavy considerations, that characterise developers’ duties to those who have lost access to their Bitcoin, deserve to be explored and determined at full trial and not to be dismissed through a jurisdiction challenge.

“Individual owners of digital currencies will be grateful that leave to appeal has been granted as the outcome will set the precedent for others to follow, should they lose access to their private wallets.  We look forward to successfully presenting our case in full in due course.” 

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

The defendants in this unprecedented action are the developers of BTC, BCH, BCH and ABC 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.

Following the jurisdiction hearing, the Bitcoin Association, developers of BSV, has entered into a settlement agreement with Tulip Trading Ltd.

ENDS

In the Court of Appeal: Lady Justice Andrews DBE.

Legal Advisors:   Dr Wright was represented by Derek Stinson, Oliver Cain, Felicity Potter and Nicolas Dawson of ONTIER LLP.

For further information please contact:

Bell Yard Communications                        +44 (0)20 7936 2021  BellYard@bell-yard.com

Melanie Riley                                            +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 seeks 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. 

Other litigation involving Dr Craig Wright

There is a series of successful or pending legal claims issued by lawyers across jurisdictions 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:

·         Earlier this year, Dr Wright’s UK lawyers, ONTIER LLP, on behalf of Dr Wright defeated a strike-out attempt by Magnus Granath, following Dr Wright’s English defamation proceedings against Granath.  This trial will heard by the High Court in late 2023. 

·         On 12 September 2022, the District Court of Oslo will hear Granath’s application for a Negative Declaration to determine that his campaign of disparagement of Dr Wright through social media is not defamatory. This is challenged by Dr Wright, who will give evidence in person in Norway during this trial.

·         Earlier this month, influential digital currency podcaster, Peter McCormack, was found by the English High Court to have defamed Dr Wright in 14 tweets and 1 YouTube video, in which McCormack decried Dr Wright’s assertion that he invented Bitcoin.  This judicial ruling came not long after McCormack withdrew his reliance on a defence of truth to his publications.  Aspects of this judgment are under consideration by Dr Wright and his lawyers with a view to launching an appeal.

·         In 2021 Dr Wright successfully brought a copyright claim against the anonymous digital currency enthusiast operating under the pseudonym “Cøbra”. Enforcement of this judgment is ongoing.

·         ONTIER LLP and Harcus Parker LLP are advising companies owned by Dr Wright in their passing off claims against exchanges Kraken and Coinbase, filed in the High Court earlier this month.

·         Dr Wright is also advised by ONTIER on his defence and counter-claim to the Crypto Open Patent Alliance’s (COPA) challenge to Dr Wright’s authorship of the White Paper, which also will likely be heard in 2024.

·         In December 2021 Dr Wright successfully defended a claim brought in US by Ira Kleiman, brother of Wright’s late friend Dave Kleiman, who predicated the claim on the fact that Dr Wright is Nakamoto, but that Wright created Bitcoin with the help of Dave Kleiman.  The jury rejected that allegation.

About ONTIER

ONTIER has an established and growing practice for recovering stolen and hacked Bitcoin. Its partners, Oliver Cain, Derek Stinson, Felicity Potter 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. 

London, 12 August 2022

ONTIER LLP client, Dr Craig Wright, the inventor of Bitcoin – the world’s first functioning and successful electronic cash system – welcomes today’s judgment in so far as it finds that McCormack has defamed Dr Wright and caused serious harm to his reputation in all of his tweets and YouTube interview in issue. 

Dr Wright sued in libel over 14 Tweets published by Mr McCormack and words spoken by him in a YouTube video between March and October 2019.  Dr Wright claimed that the publications alleged that he fraudulently claimed to be Satoshi Nakamoto, the pseudonymous inventor of Bitcoin.

In finding that each of the publications complained of were likely to have caused serious harm to Dr Wright’s reputation, the Judge found that “the fact that [Mr McCormack] was willing to state his views so brazenly in response to threats of libel proceedings is likely to have made those who read [the publications] more, not less, likely to believe them..”

Mr McCormack had initially sought to defend the action on the grounds of truth, public interest and abuse of process; however, he abandoned those positive defences shortly after the parties exchanged disclosure in September 2020.

Dr Wright says:

“I have endured, and for the large part ignored, extreme and offensive online trolling for many years. But there comes a point at which the orchestrated trolling has to be confronted. It has a severe impact on me and my life’s work. Where requests to cease and desist are ignored or rebuffed, I have little choice but to seek legal redress.  

“The defendant abandoned the defence of positive truth months ago – in other words he accepted his words were untrue – and chose to defend only on whether his Tweets caused me serious harm or not.   McCormack was wrong when he said I am not Satoshi Nakamoto.  His Tweets caused me harm both personally and professionally. 

“As anticipated, bit by bit the independent courts across various jurisdictions, including those with juries with the benefit of an examination of all the evidence, are concluding I am who I have admitted I am, since I was outed as Satoshi by media in 2015. However too little regard is paid to the impact my Aspergers has in my communications. I intend to appeal the adverse findings of the judgment in which my evidence was clearly misunderstood.

“I will continue legal challenges until these baseless and harmful attacks designed to belittle my reputation stop. This is not for financial reward, but for the principle and to get others to think twice before seeking to impugn my reputation.”   

Simon Cohen of ONTIER LLP says: 

“The defamation laws in England are increasingly challenging for claimants but Dr Wright has successfully exposed the damage Mr McCormack’s deliberate campaign has caused to Dr Wright’s reputation. Social media provides no hiding place for libellous comment and nor should it. In fact, we have demonstrated in this trial that its use often exacerbates the harm, given its capacity for the swift and exponential spreading of a false narrative which can fly around the world in seconds leaving the truth far behind. We are pleased that this has been recognised by the court today, but are reviewing the judgment carefully with a view to appealing the interpretation of Dr Wright’s evidence.”

ENDS

Trial judge: Mr Justice Chamberlain

Legal Advisors: Dr Wright was represented by Derek Stinson, Simon Cohen, Sara Saleh and Joe Woodward of ONTIER LLP, Adam Wolanski QC, Greg Callus and Lily Walker-Parr of 5RB Chambers.  

Issued on behalf of ONTIER LLP by:

Bell Yard Communications                        +44 (0)20 7936 2021   BellYard@bell-yard.com

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

Notes to Editors

The trial to determine serious harm with McCormack was heard over 3 days (23-25 May 2022) at the High Court in London.   

The judgment is the latest outcome 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”. 

·       ONTIER has recently defeated a strike-out attempt by digital currency enthusiast, Magnus Granath, following Dr Wright’s defamation action, the trial of which will heard by the High Court in late 2023.  

·       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.

·       ONTIER is advising companies connected with Dr Wright in their passing off claims against exchanges Kraken and Coinbase, filed in the High Court earlier this year.

·       Dr Wright is also advised by ONTIER on his defence to the Crypto Open Patent Alliance’s (COPA) challenge to Dr Wright’s authorship of the Bitcoin White Paper, which will be heard in 2024. 

(1 August 2022)

ONTIER LLP client, 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.

(3 May 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/

Follow Bell Yard Communications on LinkedIn and Twitter

(25 March 2022)