Thread by @wizsecurity

We're still waiting for the full transcript, but Judge Reinhart's order on the Kleiman v Wright case is now available (thread)

courtlistener.com/recap/gov.usco…

From the very beginning the judge makes it clear that he is NOT deciding on whether CSW is Satoshi Nakamoto. CSW and his fans have already repeatedly lied about this since the ruling.

The judge takes CSW's bitcoin ownership claims at face value; those lies now only work to Wright's detriment, and the judge seems content to let Wright lie in the bed he made for himself.

Judge Reinhart ordered sanctions under Rule 37 as punishment for Wright's willful misconduct during discovery.

The judge doesn't believe Wright's stories about being unable to access his bitcoins, but doesn't think the evidence is enough for criminal contempt of court.

There *is* enough for civil contempt, but the judge thinks the sanctions he's ordering are sufficient punishment, so he declines to refer it to Judge Bloom.

Judge finds that W&K was formed as a 50/50 partnership, and owns all Bitcoin-related assets created by Wright prior to Kleiman's death. Plaintiffs retain Kleiman's 50% ownership.

Note the "and any assets traceable to them", directly contradicting Wright's recent claims that this ruling somehow only covers BTC, not BCH or BSV.

As sanctions, the judge awards attorney's fees and strikes Wright's affirmative defenses, basically leaving Wright without a leg to stand on for the rest of the case.

The judge tears into Wright's testimony and credibility in no uncertain terms, completely rejecting it. He agrees with Judge Bloom's recent finding that Wright is not credible.

Cui fucking bono at work. The judge clearly took no stock in Wright's suggestions that "a hacker did it".

The judge concludes that the Tulip Trust described by Wright does not exist, and that Wright merely used this story to intentionally impede discovery.

Though not being 100% accurate with terminology, the judge correctly identifies that it's weird to transfer bitcoins by copying keys instead of issuing transactions. (I'm not sure if this point was even argued during the hearings.)

Judge's TL;DR: the defense's entire argument rests on Wright's word, which is beyond worthless. Someone like Wright *would* lie in court.

The judge does not fault Wright's lawyers for Wrights willful misconduct. (In a previous hearing he more or less openly sympathized with them for having to deal with a lying client.)

As part of sanctions, the court deems the aforementioned facts (W&K 50/50 owns all assets etc.) as established. In other words, Wright is such a liar and a fraud that the court won't even try to find out what's really true, and instead declare facts in the plaintiff's favor.

BONUS: The judge explains how Shamir's Secret Sharing works, since Wright previously stated untrue things about it.

courtlistener.com/recap/gov.usco…

That's it for the judge's order. Stand by for a Kleiman v Craig Wright part 5 where I'll dig into the full court transcript.

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Full transcript and commentary:

https://twitter.com/wizsecurity/status/1166588225709850624