Thread by @CarolinaBolado

The jury just walked back in to the courtroom in Kleiman v. Wright. Here's my story from yesterday: law360.com/articles/14411…

Before the jury came in, the attorneys discussed how they're definitely not going to be done presenting their cases by Tuesday, which was the initial plan. I think that's been pretty clear for a while.

Kleiman's team also asked to admit into evidence the Slack message that earned Wright a reprimand yesterday, as well as another one from several days ago that the plaintiffs say could be read to intimidate witness Jamie Wilson.

They want to be able to show these messages to the jury and cross-examine Wright about them. Wright's attorney says these messages have been cherry picked and taken out of context.

She also said Wright's team is appalled at the plaintiffs' efforts to comb through "what really was a private communication platform" and said "we are actually a bit baffled as to how the plaintiffs have access to the private channel."

There was an insinuation of hacking and then she pointed to this tweet by Kleiman's attorney that she said "belittled Dr. Wright's testimony in the case."

https://twitter.com/VelvelFreedman/status/1460031398799192068

Judge Bloom's about had enough of it. "In this age of electronic communication I’m not going to be the monitor of communications unless it affects this jury and the progress of the trial." So as of now, the Slack messages stay out, attorneys can continue to tweet.

We're continuing with the testimony of Kevin Madura, a cybersecurity expert who took the stand late yesterday as Wright began to present his case.

So far, Madura has testified that bitcoin was clearly created by a sophisticated coder in C++. "The way the blockchain code was written was very elegant and done in a way that brought together various concepts from various fields."

He said he looked at Dave Kleiman's resume, certifications, personal website and other work and concluded that it wasn't clear he could code in any language, let alone C++.

On cross-examination, Kleiman's attorney said Madura had used a resume provided by Wright's team to make that determination. He also said Dave Kleiman's friend Patrick Paige described Dave as a "self-taught computer genius" and suggested that Dave could have taught himself C++.

Next witness is Nicholas Chambers, also of AlixPartners. Looks like we're going to go into Dave Kleiman's electronic devices. Chambers is explaining formatting of these devices, how that works, etc. to jurors.

I admit I'm not paying super close attention at the moment, but Chambers is using a card catalog/book shelving analogy to explain formatting that seems effective and clear.

Chambers: "If you do a full reformat, you are throwing out the index and clearing out the shelves."

He's explaining now that he reviewed forensic images (which he says are exact copies of the originals) of Dave Kleiman's devices to look for activity after Kleiman's death, identify encryption and recover data.

He reviewed 5 hard drives and 9 thumb drives. 3 of the thumb drives were encrypted with TrueCrypt software. He could not access the encrypted files but all were named "do not delete."

There was encryption on 3 of the hard drives. He was unable to determine what kind of encryption it was.

4 devices were reformatted after Dave Kleiman's death, including device #14, which was a fully encrypted hard drive. The reformatting essentially throws out the card catalog for the drive, making it much harder to recover the files on it.

Reformatting also changes it enough so that even if you had the key to unlock the encryption, you wouldn't be able to use it anymore, according to Chambers.

Chambers: "There is no way to determine the content of what was there before due to the actions I described: formatting, changing operating systems, adding data."

On cross-examination now. Chambers says he did not find any bitcoin private keys on the devices. He found only one bitcoin public address on the devices. But he said he wasn't able to recover any data that was overwritten.

We're watching clips of a video deposition of Wright's ex-wife Lynn Wright now. She says the purpose of W&K was to get info security contracts with DHS and says having Dave, a disabled U.S. vet, as a shareholder was meant to help them do that

They apparently responded to two requests for proposals from DHS but Lynn says they never heard back. They tried and tried to get in touch with Dave but he was very sick and in the hospital, she said.

She says she was an administrator at and shareholder of W&K and wasn't aware of any IP or assets held by the company.

She says Wright had a "great deal of respect for Dave," respected his knowledge, his ability to intuitively solve security issues. "Firewalling, anti-hacking, anything like that. They could talk for hours about that sort of thing."

She says she never heard them talk about bitcoin or being business partners. She says Wright was informal about his business partnerships, rarely put anything in writing.

She never heard Wright talk about bitcoin. She says that in 2004/05, he said to her "You know the way of the future is digital currency?" He explained it a bit, and she said "Well that's fine, that's great for people who trust computers but I didn't."

She was not aware that Wright had filed legal claims against W&K in an Australian court, though she said at that by that point he had moved out of the house and they didn't really discuss business stuff.

She says she never really paid close attention to what was going on with W&K because "in my understanding not a lot came from the company."

The last 40 minutes or so we've been watching a video deposition of Wright's uncle Donald Lynam, who was in the Australian Air Force and then went into software development. Says Wright admired him.

Lynam: Wright applied to the Australian Defence Force Academy and had "all the mental acuity and education but I understand he didn't get in and didn't succeed on the basis of his personality. I think we all know that Craig is not known for his people skills."

Says his relationship with Wright is typical of an uncle/nephew. Would communicate with each other frequently via phone and email. Wright was particularly close with Lynam's father, Wright's grandfather. They liked to spend time in the "hamshack" with an amateur radio.

Lynam says Wright developed a token system for Lasseters Casino to enable online gambling using all kinds of currencies. He says this was like a precursor to bitcoin.

He says Wright would sometimes send him papers he was working on. He says he saw a version of what would later be the bitcoin white paper. "It was far too technical for me and poorly written but I didn't want to offend him and go in and correct his English."

He didn't remember details of the paper, but said it was "clearly to be a digital monetary system" and that it had the "same content or very similar content as the paper that came out."

He says Wright told him he was going to publish it under a pseudonym to protect his privacy. The name "Satoshi Nakamoto" was a "surprise but not a shock" because of Wright's "attachment to all things Japanese."

He says Wright told him it was the name of two Japanese philosophers.

When asked if he knew if Wright had any collaborators, he said he figured Wright had some people helping him "put the package together." He names Hal Finney, who he says reached out to SN after bitcoin went live and said he'd found some faults with it that he could fix.

Lynam: "I think Hal Finney did quite a bit but I don’t know of anybody else by name who did major contributions to any of the work."

Wright never mentioned Dave Kleiman to Lynam by name. Lynam did know the name though because he had seen it as a co-author with Wright on a number of books and training guides they had worked on together. But never heard him mentioned in context of bitcoin creation.

Lynam says he bought 2 bitcoins in 2010 for $5 but "didn't pay much attention to it" and has lost the keys.

We've got a medical doctor on the stand now to testify about Dave Kleiman's health. This will go to 5pm and will pick back up tomorrow morning. I'm going to step back from tweeting for now.