Some Bitcoin investors and enthusiasts are getting uncomfortable over the actions of Craig Wright, the self-proclaimed inventor of the world’s largest cryptocurrency, and are beginning to fear another major downturn in the BTC price.
Wright has failed to comply with a US Federal court order instructing him to list his Bitcoin holdings prior to December 31, 2013, and could be held in contempt of court at a hearing which follows on Friday this week.
The Florida District Court order was issued under the ongoing lawsuit filed by Ira Kleiman – representing the estate of his deceased brother David Kleiman, former business partner of Wright – who claims Wright defrauded his brother out of more than a million Bitcoins following his death in 2013.
Investors Getting Nervous
Some investors are getting nervous that Wright may be ordered to repay the Kleiman estate the Bitcoin stockpile, allegedly held in a fund called the “Tulip Trust”. If such a stockpile were immediately consolidated into cash it could have a significant impact on the price.
Others fear that Wright – known for his sometimes volatile and capricious behaviour and who claims to be Satoshi Nakamoto, the mysterious inventor of Bitcoin – if piqued by the court’s decision on Friday could sell much or some of his own significant holdings.
One Twitter user said:
Do you think #craigwright will sell all his #BTC holdings in 2020? Satoshi or not, he has a stash that would cause an epic crash in BTC. Which would probably scare everyone else in all the other coins out of the market probably including #BSV.
— $AnthonyM (@amentesa85) June 22, 2019
Another nervously asked a question of BitcoinSV (Satoshi Version) – a hard fork of Bitcoin Cash in November last year promoted by Wright: “Just wondering, what does the BSV community expect to happen to the coin if Craig Wright is indicted?”
That would be the instant end to all promotion efforts.#bitcoinsv
— Joshua Zeidner (@JoshuaZeidner) June 16, 2019
According to a court filing on May 8, Wright had named seven trustees of the Tulip Trust, including himself and David Kleiman. The filing also pointed to the existence of a second Tulip Trust.
While it remains unclear whether both, or either Wright or Kleiman created Bitcoin, the Kleiman estate’s lawyer Vel Freedman has said “it is undeniable, however, that Craig and Dave were involved in Bitcoin from its inception and that they both accumulated a vast wealth of Bitcoins from 2009 through 2013”.
Freedman took to Twitter last Friday saying that Wright had not complied with the court order to list his Bitcoin holdings as of the end of 2013.
Craig Wright hasn’t complied with the court’s order to list his bitcoin as of 12/31/13. He remains under an order to show cause why J. Reinhart shouldn’t issue sanctions under R.37 & order him to appear before J. Bloom to explain why he shouldn’t be held in contempt. @KyleWRoche
— Vel Freedman (@VelvelFreedman) June 21, 2019
While some investors may have appeared to be showing the nerves, the price of Bitcoin remained just below $11,000 by early afternoon on Monday, up 1.3% on the day. BitcoinSV, however, was down 0.4% at $238.