Thanks for the response. Could you tell me what's his argument concerning the UTXOs that you mentioned above (1Feex etc)? He claims he owned the private keys that derive those addresses, but he lost them somehow? If so, how? And again, why does this have anything to do with the bitcoin Devs? I am curious to know and of course any relevant link is well accepted.
He claims that he purchased the coins 1feex and 12ib7 in 2011/2010. He has claimed that in February 2020 "hackers" hid a wireless access point in his home behind a TV and used it to compromise his computer and erase the keys. This is conveniently right after the date he was supposed to get access to his bitcoin fortune via a 'bonded courier'. He claims that the coins were also stored in one drive and google drive and that they were 'synchronized' and erased too (so much for backups...). He claims that after discovering the hack and the loss he wiped his own computers to be sure they were free of hackers.
The coins have not moved since 2011/2010, wright explains the "hackers" failing to move the coins-- unlike any hacker previously known to man-- by claiming the coins were protected by unspecified "algorithmic masking" (the precise meaning of which which he never explains, I would suggest that people refrain from making up things it could mean because he'll just adopt your explanations as people here are likely to be significantly more clue-full than he is).
The 1feex coins were
well known to be
coins that belonged to mtgox customers which were stolen long before Wright came on the scene back in March 2011 when they last moved. Wright had previously included the 1feex and 12ib7 addresses on lists of addresses he claimed to own to the Australian Tax Office as part of R&D tax credit and GST rebate fraud. The ATO concluded he didn't own the claimed coins, because (among other reasons) he couldn't sign with their keys when challenged. After the lists became public the real owners of some of the addresses on his lists were identified. One even signed a message calling Wright a liar and a fraud. I believe 1feex and 12ib7 were the only large addresses from the lists that hadn't been moved away by the time he started the lawsuits.
Wright provided a few records to demonstrate his ownership. They are obvious forgeries (some apparently created to support the GST rebate fraud, some apparently newly created for case), but even if they weren't they wouldn't be particularly persuasive as they'd still just be his assertion-- they aren't third party verifiable.
You can read in detail in the documents at
https://bitcoindefense.org/our-work/ under "tulip trading".
Particularly, our preliminary issue application goes into some detail about Wright's "evidence" being junk:
https://bitcoindefense.org/wp-content/uploads/2023/07/2023.07.11-Elliss-1-Preliminary-Issue-Application-FINAL.pdf and after that was filed we gained access to prove even more of it was forged, which is described starting at paragraph 40 in
https://bitcoindefense.org/wp-content/uploads/2023/10/BL-2021-000313-Tulip-Trading-Ltd-D2-12s-skeleton-argument-for-3-October-2023.pdf And again, why does this have anything to do with the bitcoin Devs?
Wright has asserted that the people he's suing in that case have both the ability to introduce changes into the bitcoin protocol bypassing its authentication to allow him to seize these coins (the backdoor I referred to up-thread), and that we owe him a fiduciary duty under the law to do so. A fiduciary duty is a duty of single minded loyalty, pretty much the strongest and most rare duty in the law. We reply that he has not proved the coins are his, which is unsurprising because they're pretty obviously not his, that we don't have any duty to help anyone recover coins, much less write or publish backdoors, that we don't have the ability to grant him access to these coins. (and if we did, there are coins the defendants have lost that we'd have have recovered for ourselves first!) While anyone could make a backdoored version of bitcoin, including presumably us, no one would run it because it would expressly defeat the purpose of the system as clearly explained by Satoshi (who wright claims to be!) and so it would have no effect (except perhaps creating another altcoin like BSV that no one but Wright wants, and destroying the authors reputations which I'm sure would suit him fine).
The argument that contributors to
MIT licensed open source software owe fiduciary duties to rescue users of the software, in spite of the clear license language to the contrary is extremely concerning. In both the US and the UK a police officer standing next to you with a life preserver has no duty to try to save you if you start drowning... yet Wright wants uncompensated volunteer open source contributors to be exposed to billions of dollars in damages if they don't rescue users from misfortune which the contributors had nothing to do with except having contributed to the software the user was using. It's hard to imaging how open source could exist in a world with that kind of liability.
It would be a large scale disaster far outside of Bitcoin if he were able to establish that precedent that the MIT license waver of liability were insufficient.
As to why he's doing this when it plainly won't work: Some of the defendants, like myself, had previously spoken out against Wright's obviously false claims of being Satoshi (as experts on Bitcoin related tech and first hand witnesses of its history). Wright made numerous tweets saying that he intended to destroy the lives of the Bitcoin developers, making it pretty clear that retaliation is at least part of his motivation. Wright's litigation (and lifestyle) is being funded by a wealthy sucker who may believe Wright's claims that the coins could be taken this way-- expecting a multi-billion dollar windfall. Suing almost all the still visible "OG" bitcoin developers may have also been a strategic move to undermine our value as witnesses in litigation over his claims to be Satoshi and certainly has discouraged other people from stepping forward and speaking out against him. It also explains his choice of defendants-- and it includes many people who stopped working on Bitcoin prior to his supposed theft but whom had attracted his attention by calling out his fraud (like me!).
Fortunately the Bitcoin legal defense fund was created to make sure that the outcome wouldn't be Wright "winning" by bankrupting his targets before the case even reached a resolution. (As happened in his lawsuit against podcaster Peter McCormack; though Wright seized defeat from the jaws of victory by getting caught lying about his damages.)
The legal tradition common to the US and UK torts makes some fairly strong assumptions that the participants are incrementally mostly honest because being dishonest will make you lose if you're caught (and potentially receive worse sanctions, though that's rare). But when you never had a real prospect of success and were only litigating to harass or for some collateral benefit (e.g. to keep getting funded) these incentives don't work well. In the US we have widespread anti-slapp laws that are a basic attempt to try to address this weakness, but the UK is behind on these sorts of protections. His willingness to tell arbitrary lies, forge documents, etc. makes it difficult and costly deal with this litigation even though it should be an easy slam dunk.