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Craig Wright, the self-professed inventor of bitcoin, is testifying today in a West Palm Beach federal courtroom about why he hasn't been able to produce the public addresses of the bitcoin he's mined over the years.
He says he just can't get this information, and that public addresses wouldn't provide the plaintiff in this $10B suit against him with anything relevant.
He choked up as he told of how he wanted to create a cryptocurrency that did not fall to crime, but that he was unsuccessful. Others he worked with started Silk Road and Hydra, on which drugs, weapons and child pornography are traded and sold.
We're on a break now. Cross-examination will begin after lunch.
Just a few minutes into cross and things are getting testy. Ira Kleiman's counsel is asking Wright about an email that Kleiman says Wright forged. Background on that: law360.com/articles/11543…
Wright accused Kleiman's counsel of committing perjury by putting this document, which is a printout of a pdf of an email, before the court. "You are provably misleading the court," Wright said.
Wright then tossed the document, which did not sit well with Judge Reinhart:
"You throw another document in my courtroom you will be in handcuffs so fast your head will spin" -- Judge Reinhart
They combed through the metadata of the email, and Wright kept insisting "it's not an email, it's a pdf."
Wright says Kleiman's counsel is trying to mislead the court, but the allegedly forged email in question was provided by Wright's team.
Wright says this document was sent by his staff, who were at the time trying to force his company into liquidation. "You want me to comment on a file from a server run by a person who was trying to force me into liquidation so they could sell my intellectual property."
Now we've moved on to a line of questioning about the trust in which Wright put his bitcoin.
Kleiman's counsel @VelvelFreedman: "A company you didn't buy until 2014 is listed as a beneficiary of a trust you claim to have created in 2012?"
@VelvelFreedman Wright: "You have put forth documents I don't recognize."
Freedman: "Documents you produced in discovery."
@VelvelFreedman This is a recurring theme. Wright says he doesn't recognize several documents, and Kleiman's counsel points out that his side is the one that produced them.
@VelvelFreedman So Wright has explained that he needs at least 8 of 15 key slices in the right order to access the bitcoins in his trust. (Bear with me here on the technical stuff; I'm a legal reporter, but definitely not a cryptocurrency expert.)
@VelvelFreedman Freedman: "Who holds the 15 key slices?"
Wright: "I hold some. I don't know off the top of my head."
@VelvelFreedman Freedman: "Who else holds them?"
Wright: "I haven't looked at the file. No one asked me to look at the file."
Freedman then pointed out that he'd been asked to produce the public addresses. Didn't he think to try to track down who holds the keys?
@VelvelFreedman So the judge took over questioning here. Wright explained that he gave some keys to Dave Kleiman and directed him to give them to bonded couriers. Some of the keys won't be made available until 2020.
@VelvelFreedman Judge: "So since 2016 you have known that you didn't have access to these files and wouldn't have access until 2020? And you knew this in February 2019, and March 2019?"
@VelvelFreedman The judge didn't say anything more about this, but the clear implication was that he would've liked to hear about this before today.
@VelvelFreedman Kleiman's counsel has rested. We're on a break now before we go to redirect. This definitely will not be over today. They're trying to finish up with Wright but will have to come back another day for testimony from expert witnesses.
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