Louisiana Senate Proposes Virtual Currency Businesses Act; Crypto Companies Would Need to Register

A virtual currency business licensing bill (HB701) sponsored by state Rep. Mark Wright was cleared unanimously by the state House of Representatives and now has been forwarded to the Senate Committee on Commerce, International Affairs, and Consumer Protection.

If the bill is passed by the Senate, Louisiana would become the first state in America to approve crypto licensing for virtual currency businesses.

Rep Mark Wright has been a steadfast advocate of digital currencies. Back in 2019 itself, the Rep.Wright asked the OFI to study the various nuances of digital assets and regulations to govern their use. Back then, he introduced another crypto bill that failed to pass the House committee.

If HB701 is approved, crypto businesses would be required to apply to the state’s Office of Financial Institutions (OFI), pay a non-refundable fee, and submit their business premise along with experience, general fitness, and character for the investigation.

OFI estimated that the application charges could be around $2,000 and the annual renewal of the license would cost $1000. It is estimated that the bill would cost the state $150,000 in the first year and around $1.3 million over the next 5 years.

Individuals dealing with less than $35,000 in capital would not be required to obtain an operating license, and would only be required to be registered with the OFI.

The New Bill is Derived From Virtual Currency Business Act (VCBA)

The new virtual currency business licensing bill seems to be derived from the Virtual Currency Business Act (VCBA). VBCA has been drafted by the non-partisan Uniform Law Commission (ULC), which is known for drafting model laws.

These laws are meant to bring statutory uniformity across states and currently, Oklahoma, Hawai, and California are looking to implement a version of VBCA.

Andrew Hinkes, a lawyer by profession explained how ULC formulated laws work:

“The ULC releases model laws which sometimes are quickly adopted by multiple states and sometimes are not adopted at all.

State legislatures ultimately make policy decisions for their states and decide whether model laws are appropriate.”

However, the bill sponsored by Rep. Wright is significantly different from the ULC drafted VBCA bill.

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Author: Rebecca Asseh

Does Craig Wright Have Access to Encrypted Satoshi Files With Private Keys for $7.5B in BTC?

The class-action lawsuit filed by the Kleiman Estate against Craig Wright, the self-proclaimed Bitcoin creator and former partner of late Dave Kleiman has seen several twists and turns with no definitive outcome.

Kleiman Estate is suing Wright to get access to the Bitcoin mined by Wright in partnership with Dave Kleiman, while Wright maintains there was no such partnership.

The latest twist in the case came from the Kleiman Estate, which now claims that Wright had access to the Encrypted Files believed to be those of Satoshi, which contains private keys associated with 820,000 Bitcoin. The Estate filed a new court document on 21st May claiming Wright has the access to Encrypted Files but he won’t do so since it contains clear evidence of his partnership with Dave.

The court document claimed that $1.6 million worth of Bitcoin has been spent from the addresses submitted to the court as a proof suggesting Wright has access to those private keys. It also points to the threats made by Wright about crashing the Bitcoin market, which is only possible by a large amount of dump in the market.

Craig Wright has since submitted a list of 16,404 BTC addresses to prove his claim of being the owner. However, Kleiman’s Estate claimed that this is one of the three batches of addresses which Wright has access to and the fact that a significant amount of BTC has been spent from these addresses “is incontrovertible evidence that Wright has either:

  • Submitted a fraudulent/incomplete list of his bitcoin as the CSW Filed List and/or
  • He does have access to a list of his bitcoin and the private keys associated with them and is lying.

The legal team further points out that Craig Wright throughout the case has lied, submitted misleading filings, caused obstruction with forged evidence are clear signs that Wright has access to the Encrypted files.

Kleiman Estate Lists Lies and Perjuries of Wright

The legal court document also lists four instances where Wright has either lied during the case or submitted forged documents. The one being just last week where Wright has submitted a forged divorce document.

The document claimed that Wright’s wife too lied about the claims of his husband since she is financially dependent on him and thus had clear reasons to do that. The document also claimed that she has lied in the past.

The Kleiman Estate in its legal filing also criticised the court for being soft on Wright and only putting sanctions despite him showing no respect for the legal procedure and the court, as evident from his continuous lying. They appealed to the court to take strict action against the accused to keep him in check. The court filings read:

“For the foregoing reasons, Plaintiffs respectfully request that the Court issue an order pursuant to its inherent powers striking Dr. Wright’s Amended Answer and entering a default judgment against Dr. Wright.”

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Author: Rebecca Asseh

Craig Wright Claims ‘Attorney Privilege’ In Tulip Trust Case On 11,000 Crucial Documents

  • Kleiman vs Wright case took a new turn as Craig Wright, “Faketoshi”, claims attorney-client privilege.
  • The defendant has claimed attorney privilege over 11,000 documents released to him by a third party.
  • Kleiman’s lawyers claim abuse of privilege by Craig Wright in settling the $10 billion USD lawsuit.

The prolonged Kleiman vs Wright case has taken yet another turn as the defendant raised a plight of attorney-client privilege after failing to provide the alleged bonded courier. Craig Wright (defendant), self-proclaimed “Satoshi”, stated in court earlier this year, that he had received a bonded courier with over 11,000 Bitcoin addresses from a third party. However, when the court ordered him to produce the documents, Craig’s legal team is claiming attorney-client privilege on the documents.

Furthermore, the defendant claims the bonded courier is a lawyer hence no information can be shared in court yet. This back-and-forth from Craig’s camp has seen the Kleiman estate file for abuse of privilege by the defendant. The statement from Kleiman’s counsel read,

“Craig [Wright] has improperly withheld documents as privileged.”

Wright told the courts multiple times that he was awaiting a bonded courier to arrive in early January with the documents that will help him access the encrypted files. The files would then offer access to the 1.1 million Bitcoins (~$10 billion dollars) in the wallet. This is known as the Tulip Trust, which is largely controlled by Wright.

Since expiration of the court deadline to produce the files, Craig has been on the edge with the latest court hearing on February 3rd, witnessing “Faketoshi” claiming attorney privilege.

Craig used 18 companies listed by the Kleiman’s counsel to claim privilege. The lawyers released a statement reporting,

“Based on that investigation, plaintiffs [has] determined that all but two companies and Nchain have already ceased to exist; and those two are in the process of being liquidated by an external administrator in Australia.”

Notwithstanding, the self-proclaimed founder of Bitcoin, further claimed privilege on the bonded courier that brought the 11,000 files saying the courier is a lawyer. This means the lawyer cannot testify in court on the matter with the lawyer’s communication privileged.

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Author: Lujan Odera

Craig Wright’s $3 Billion Bitcoin Dump isn’t Coming Anytime Soon

  • No $3 billion dump incoming because Faketoshi doesn’t have the private keys
  • Craig Wright says he never said the private keys would arrive next month
  • Self-proclaimed Satoshi says BTC is dead, it won’t go to a million or hundred dollar

The countdown for Craig Wright’s 1 million Bitcoin fortune has stopped ticking because Faketoshi needs more time.

That’s right, Craig Wright who claims to be Satoshi Nakamoto, who invented the world’s leading cryptocurrency Bitcoin won’t be able to surrender $3 billion of his BTC holdings that he has been ordered by a judge.

US Magistrate Judge Bruce Reinhart in West Palm Beach, Florida, said earlier this year that Wright submitted false documents and even lied in the legal dispute.

The Judge ruled that the Wright’s partner Dave Kleinman owned half all the BTC that Wright mined in 2013 along with the half of all the intellectual property he created.

The problem is that there is no certainty that the information to help identify the originality of the coins that have to be split in a legal dispute will in fact arrive, said Wight in a statement to Bloomberg.

In his statement to the media outlet, he further added that he hasn’t said the private keys to those Bitcoins would be available next month.

Wright doesn’t want to dump his $3 Billion Stash

In a statement, while talking about his fortune in another attempt to try to convince people with his words when the forged documents didn’t work that he is the anonymous BTC creator, Wright said,

“I do not intend to dump my family’s BTC as some people suspect or want, as this would hurt many people in the industry.”

He also said, unlike Ira Kleinman, brother of late Dave Kleinman, who could dump his $2-$3 billion BTC in the market because he needs it, Wright wouldn’t have done if he would have been left alone.

“I would have sat on my f*cking money and you wouldn’t have to worry,” said Wright adding, This is not an outcome I would have liked.”

Bitcoin is Dead, It is going to $20 let alone a Million Dollars

The self-proclaimed Satoshi recently took a jab at the price prediction of Bitcoin Core stating, “It’s not going to keep going up in value. There is no million-dollar Bitcoin. That’s Ponzi land.”

Linking the increase in BTC value to that of Tether supply, he said “Tether is not going to pump anymore. This is dead. BTC isn’t going to 20, 40, 50, a hundred.”

Meanwhile, Bitcoin is currently trading at $7,216, up 90% year-to-date basis, as per Coincodex.

Wight’s Bitcoin SV, however, is barely at $90, down 1.78% YTD while Bitcoin cash (BCH), from which it has been hard forked, is trading at $200, representing a gain of 18.20% in 2019 till date.

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Author: AnTy

Self-Proclaimed Bitcoin Inventor, Craig Wright, Fails To Settle Kleiman Case Due To Lack Of Funds

Court documents filed recently in Florida show that Craig Wright, who claims to be the famous Satoshi Nakamoto, who is credited to have invented Bitcoin, now says he has no funds to settle his case with David Kleiman.

According to Cointelegraph, Wright told the complainant that he was pulling off an earlier out-of-the court settlement agreement as he was unable to meet the 500,000 BTC ($4.5 billion) needed.

The case has been brought back to the court by Kleiman’s lawyer and seeks to compel Wright to settle the agreement or the case goes to full trial.

After signs that the case was coming to an amicable solution, Kleiman halted active proceedings to focus on how the issue would be settled even agreeing to prolong the settlement time to the end of October. However, as court documents indicate, Wright has broken the settlement agreement.

The court documents have been filed by Ira Kleiman who instituted the charges last year accusing Wright of falsifying enterprise documents as well as other documents with the intention of defrauding the estate of David Kleiman, his late brother.

In August, Wright was found to be in contempt of court for his failure to divulge the amount of Bitcoins he holds which reportedly are about 1.1 million, CoinDesk reports.

After the hearing commenced, Wright told the court that he was unable to access his Bitcoin as the death of David Kleiman, his former business counterpart, affected some of the wallet logins. However, the court dismissed the claim saying that Wright’s arguments were inconsistent.

The court documents show that Wright did not give a notice before he broke the non-binding agreement.

Wright had at an earlier time bid to be given extra time to confront the judge’s sanctions giving an excuse of the approaching Hurricane Dorian.

In related news, Wright has severally explained that Satoshi Nakamoto, credited for starting the Bitcoin and crypto movement, copied his white paper.

Keep it here as we follow the proceedings and relay them directly to you as the case goes on.

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Author: Joseph Kibe

Craig Wright to Go Against Court Decision Using…Hurricane Dorian?

The Craig Wright vs Kleiman saga gets sweeter. Or not really. This time, the saga well known Australian businessman and computer scientist is appealing against a court ruling that puts half of his Bitcoin fortune at stake. Only this time he is appealing using the Hurricane Dorian as a plot to not pay the Bitcoins.

Mr. Wright aims to challenge a court decision in a ruling that went in favor of one Ira Kleiman. Ira Kleiman is a brother to the late Dave Kleiman who was a forensic computer expert until his death in 2013. Craig Wright who openly claims to have been part of the team that invented bitcoin is being sued for close to $10 billion on accounts of trying to illegally seize Dave Kleiman’s bitcoin holdings.

This was formalized by a magistrate ruling on the 26th of August last month. Magistrate Bruce Reinhart concluded on the ruling that Wright must give back 50% of the bitcoins he mined before 2014 to Kleiman estate.

Craig Wright, on the other hand, is not giving in that easily. The businessman is not just giving Kleiman estate bitcoins worth billions of shillings that easily. At the moment, the computer scientist has already filed a motion pleading for a time extension before he can challenge the court order by the judge. His complaint is that the approach of hurricane Dorian towards Florida has forced them to turn their attention towards preparing for the same.

This has, in turn, reduced their concentration and ability to work on the court matter within the given time. In a document he recently filed, he expresses his dissatisfaction towards magistrate Bruce Reinhart pointing out that he does not feel the ruling was done fairly with all matters considered.

Citing rule 72 from the Federal Rules of Civil Procedure, Wright suggests that he be given an extra 14 days in order to file his challenge against the ruling.

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Author: Lujan Odera

Did Archive.org and Microsoft Office Just Expose Craig Wright as “FakeToshi”?

  • Craig Wright published an article that he claimed to have made in 2007.
  • The version of Microsoft Office used to publish this paper wasn’t available until after the paper’s alleged creation date.

Craig Wright is known by the entire cryptocurrency world as the man who claims that he is the true creator of Bitcoin, claiming to be the true identity of Satoshi Nakamoto. He’s claimed this statement for years, and the topic has been brought even more into the spotlight this year with a court case that has been challenging this claim. Now, it looks like Wright is being exposed by another source.

On August 18th, a paper was uploaded by Wright to a database called Payments Providers and Intermediaries as Defined in the Law of the Internet. The submission date has been removed, but the paper is dated in 2007, showing the first line of the original Bitcoin whitepaper. Allegedly, Wright’s paper from 2007 said,

“In a similar manner to the web, a purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a payment intermediary.”

Even though this information would realistically validate Wright’s claims, it barely took 24 hours for this whole plot to be completely exposed. Peter McCormack, who is already tied in with Wright as a result of a lawsuit that accused him of libel, discovered some interesting facts regarding the paper. McCormack downloaded the only archived version of this document, finding that the creation date of the paper was August 18th.

The paper was created in Microsoft Office 365, according to the metadata, which wasn’t even released for commercial use until 2011. However, Wright claims that this exact paper is from 2007, which would be impossible with this version of Office. This isn’t even the first time that this program has been the pitfall of Wright’s claims.

In July this year, Wright submitted documents as part of the ongoing Kleiman trial, which he claimed to be from a specific date. However, in using a version of the Calibri font, which wasn’t available until 2015, Wright’s choices again were exposed as impossible. McCormack, who is presently being sued by Wright for claiming that he is not Satoshi, tweeted to ponder why Wright is even going after him, when it is clear that the document could not possibly have been created when he said.

McCormack was sued by Wright in April this year, after he refused to agree that Wright is the official creator of Bitcoin. Wright sued Roger Ver, the owner of Bitcoin.com, as well, but the case was dismissed by the UK court for not being relevant.

Even with another self-proclaimed Bitcoin creator in the world, Wright is seemingly working to do everything he can to say that he’s the one and only Satoshi. But, is he?

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Author: Krystle M

Craig Wright to Take the Stand Soon for Kleiman Lawsuit Hearings Regarding Bitcoin’s Creation

Craig-Wright-to-Take-the-Stand-Soon-for-Kleiman-Lawsuit-Hearings-Regarding-Bitcoins-Creation
  • Craig Wright has continued to claim to be the true creator of Bitcoin.
  • He will be calling himself as a witness in the Kleiman vs. Wright lawsuit.

The case of Kleiman vs. Wright has been going on for quite some time, and new reports show that Craig Wright will be calling witnesses at the June 28th deposition. Wright has consistently stated that he is the creator of Bitcoin, and he will be calling two expert witnesses, a fact witness, and himself to the stand. Ultimately, since Wright will already be on the stand, he opens himself up to cross-examination.

There is already a chance that Wright will end up being placed in contempt of court after he failed to provide the list of Bitcoin holdings that he kept before the end of 2013, according to CoinDesk. This failure could lead him to trouble at either the civil or criminal level.

The chief scientist for nChain had allegedly mined over 1.1 million Bitcoin with Dave Kleiman between 2009 and 2011, believed to be stored in the “Tulip Trust.” Though Kleiman has since passed, his sister Ira is suing on behalf of his estate, asking for the fair market value and rights to the intellectual property.

The court documents say that Brett Roberson will be offering his testimony regarding digital forensics and PGP signature. His experience also covers theft of intellectual property, analyzing the activities found on a computer through a specific range of time, and recovering files that have already been deleted. All of this experience can be found in his CV, which is being used as Exhibit 1.

Kevin Madure is the second expert witness, who is the former IBM consultant and VP of cybersecurity at AlixPartners. He will be testifying to cryptography, blockchain technology, and cryptocurrency, specifically in reference to how it affects this case.

The fact witness will be Steve Shadders, who is the CTO of nChain. Previously, Shadders posted a blog titled “On the Satoshiness of Dr. Craig S. Wright.” The blog discusses the reasons that Shadders believes that Wright could be the true identity of Satoshi Nakamoto. His statements are based on his experiences with Wright, even though he claims to have decided against seeing conclusive evidence.

To ensure that he has some kind of control over the narrative, Wright is calling himself as well. Palley, a lawyer that is following the case but is not directly involved, tweeted about the issues, saying that “criminal contempt” is still on the table.

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Author: Krystle M

Monero’s Riccardo Spagni Gets Back at Craig Wright Over Comments on Money Transmitters

Monero’s Riccardo Spagni Gets Back at Craig Wright Over Comments on Money Transmitters

Chief Scientist at nChain, Self-proclaimed Satoshi Nakamoto and a Bitcoin SV proponent, Craig S. Wright, recently released an article in which he questions the security and privacy traits of Monero XMR.

The crypto token which is the 13th largest in the market based on market capitalization is popular for its privacy features as it is constructed on the cryptographic layer system. These cryptographic qualities of the token offer an untraceable exchange of funds and separate characteristics by default.

The article details on how Monero and other mixed coins are engaged in the activity of money transfers and money handling, which according to Craig makes them Money Service Businesses [MSBs] and should therefore follow the corresponding rules. The rules include:

“Complying with the anti-money laundering (AML) program, maintaining records, and issuing against the reporting requirements as defined in their jurisdiction. Compliance would include filing Suspicious Activity Reports (SARs) and Currency Transaction Reports (CTRs). Peer-to-peer exchange is covered under the anti-money laundering (AML) rules. Avoiding the requirements of the Bank Secrecy Act (BSA) in the US is not an option.”

The article also went further to state that:

“every node, software, wallet and person engaged in the transfer of funds – any funds including Bitcoin and cryptocurrencies, was acting as a money transmitter”.

Furthermore, money transmitters and any subsystems are required to adhere with the Bank Secrecy Act [BSA] law, a U.S law requiring financial institutions in the United States to assist government agencies in detecting and averting money laundering.

Riccardo Spagni’s Response

Lead maintainer of Monero and host of Magical Crypto Conference, Riccardo Spagni, also known as Fluffypony, is one of the best-known figures in the crypto community. Riccardo then tweeted a response with an analogy saying

“Parents: are you giving lunch money to your kids? According to Craig Wright you are a money transmitter and will go to prison! Welcome to law. Have a nice life.”

And implying that with Craig’s accusations even the most basic forms of money exchange is illegal and should be prosecutable by law. However, some proponents of BSV weren’t moved by the remark and tweeted in support of the article claiming that Craig S. Wright was simply pointing out the law.

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Author: Damola