24.04.2024

Trial Back on After Craig Wright Fails to Pay Kleiman Bitcoin Settlement

According to a court document filed in the Southern District of Florida Oct. 30, Wright pulled out of the settlement agreement in which he would forfeit half his intellectual property and bitcoin mined prior to 2014. With the settlement broken, trial motions are now back on.

Australian-born technologist Craig Wright has attested that he cannot finance his court settlement negotiated with the Kleiman estate.

The document was filed by Kleiman’s counsel to set a date to depose an out-of-state witness.

Ira Kleiman brought the charges against Wright in 2018 on behalf of his deceased brother’s estate. Kleiman alleges Wright manipulated business documents, emails and other correspondence to defraud the estate.

Wright was sanctioned in late August, after being found in contempt of court by Magistrate Judge Bruce E. Reinhart for failing to disclose a complete list of his bitcoin addresses, reportedly amounting to 1.1 million bitcoin.

During the hearing, Wright claimed his bitcoin was inaccessible due to his former business partner David Kleiman’s death as well as a complicated encryption scheme. The arguments were found to be inconsistent and in bad faith.

“These discussions began at Craig’s request and due to the fact that Craig represented he had the means to finance a settlement”, Velvel Freedman, member of the prosecution and partner at Roche Freedman, said in the filing.

Wright allegedly reneged on the non-binding agreement “without notice.”

Earlier, just days after the sanction was levied, Wright requested additional time to challenge the judge’s court order due to the approach of Hurricane Dorian.

Kleiman is represented by Kyle Roche and Velvel Freedman of Roche Freedman LLP, while Wright is represented by Rivero Mestre LLP.

The trial date is set for March 30, 2020.

Bitcoin Ban Means India Will Get More Corrupt Under Modi – Tim Draper

India is leaving itself vulnerable to corruption by attempting to ban cryptocurrencies such as Bitcoin, says Tim Draper.

Speaking to California-based media outlet Indica on Oct. 31, the pro-Bitcoin VC investor called on prime minister Narendra Modi to rethink the current hostile environment towards crypto.

Draper to Modi: don’t “go back to old ways”

India banned banks servicing industry businesses in 2018, with government think tanks now recommending a full crackdown on ownership and use. A court battle to decide the final outcome saw its latest delay last month.

“I am hoping Modi becomes the honest politician, but when he shut down Bitcoin I thought he is going back to the old ways”, Draper said.

“Creating more corruption”

It remains uncertain how the Indian state would implement a crypto ban should one come into law. As Cointelegraph reported, the country’s disastrous 2016 currency reform, which saw the value of some paper notes disappear in holders’ pockets overnight, added to the demand for Bitcoin investment.

Proponents argue cryptocurrency aids criminal activity such as money laundering, whereas reducing or even eradicating cash allows for a more transparent economy.

Draper likewise praised the concept of currency reform but added that outlawing Bitcoin leaves the door open for more, not less, corruption.

“I thought it was a good move; he is getting rid of corruption and trying to create a corruption-free state, but by blocking Bitcoin, he is creating more corruption and I think that is very dangerous for the country”, he added.

As Cointelegraph noted, Draper previously gained mixed reviews when he delivered considerably more vocal comments about India’s stance on crypto.

In July, he described the Indian government as “pathetic and corrupt.”

Delhi meanwhile remains keen on blockchain, with defence minister Rajnath Singh on Monday describing it as having transformed the face of warfare.

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