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Not Your Tulip Trust? Message Calling Craig Wright ‘Fraud’ May Unlock the Case

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Infamous cryptocurrency figure Craig Wright faces newfound legal challenges over more than 1 million Bitcoin (BTC) after addresses listed in the Tulip Trust were used to sign a message labeling him a fraud. Wright has long been a divisive figure within the cryptocurrency community, having made unverified claims of being Satoshi Nakamoto, the founder of Bitcoin.

These claims have been met with derision and disbelief by various prominent industry participants, including Ethereum founder Vitalik Buterin, podcast host Peter McCormack and Bitcoin Cash (BCH) proponent Roger Ver. Wright went as far as filing lawsuits for libel in the United Kingdom against McCormack, while Buterin and Ver were also recipients of legal notices from Wright’s lawyers. Wright’s initial case against Ver was dismissed in a U.K. court, and although he appealed the dismissal, it was then dismissed again by the court on May 29.

Wright has also been embroiled in a lengthy court case relating to the estate of his former business partner since 2018. Ira Kleiman, the brother of Wright’s late business partner David Kleiman, has laid claim to half of 1.1 million BTC that Wright and Kleiman reportedly mined together as part of a group of people who worked on creating the Bitcoin network.

As Cointelegraph has previously reported, the Kleiman legal team is not out to prove or disprove the actual identity of Satoshi Nakamoto, but provide enough evidence in order for their clients to be awarded the claim to proceeds purportedly held by Wright. The case essentially rests on the ability of either proving or disproving that Wright is in possession of various private keys to early wallets that are believed to belong or have been used by Satoshi.

A long history of claims

Wright’s reputation in the crypto community has been under a cloud for many years, given his history of claims and aggressive rhetoric toward industry peers. Back in May 2016, Wright claimed to have access to the cryptographic keys associated with the first Bitcoin blocks ever mined in a blog post — which was subsequently covered by mainstream media outlets, including the BBC, GQ and The Economist.

Wright subsequently went back on his claim that he was Satoshi Nakamoto in a post that was published on his website just days after his initial claims had been made. He refused to make good on a prior promise to further prove he was indeed Bitcoin’s pseudonymous creator by actually moving Bitcoin believed to belong to Satoshi. There have been a number of incidents where Wright has made confusing statements in order to further justify his assertions that he is Bitcoin’s creator. In 2019, he claimed that Satoshi had plagiarized large portions of work from one of his theses written in 2008, adding more to the confusion: “Either I am Satoshi or Satoshi plagiarized me. You can make the choice, I don’t really care.”

Just over a year ago, Wright went as far as filing a copyright claim in the United States for the original Bitcoin white paper, as well as a major portion of the code used to build the cryptocurrency. As previously reported, the U.S. Copyright Office does not check the validity of any statement or claim made to a copyright. Furthermore, it does not legally validate any identity.

The Tulip Trust

Wright’s assertions that he is Satoshi Nakamoto have been intrinsically tied to his ongoing legal battle with the Kleiman estate since 2018, which is demanding half of over 1 million BTC that Wright and David Kleiman had mined together in the early years after Bitcoin’s inception. Wright maintains that he and Kleiman had tied up the BTC holdings into the “Tulip Trust” — which can only be accessed with private keys to the various wallets holding the BTC.

As this Reddit post explains, Wright supposedly split up private keys “into several parts using a Shamir’s Secret Sharing Scheme,” which were then distributed to trustees. Wright lost access to the holdings — a list of addresses in an encrypted file — when David Kleiman died but said that the various private keys that are needed to unlock the BTC held in the trust would be delivered by a bonded courier at the beginning of 2020.

In the months leading up to that, Wright had been ordered to deliver addresses that contained some of the BTC holdings of the Tulip Trust. While he told the court that it was impossible to do that due to the way he had split up the root private keys when the trust was created. Nevertheless, Wright did supply a number of blocks that potentially belonged to him in the Tulip Trust with the help of nChain midway through 2019. That list was met with scrutiny for various reasons, including the fact that some of the blocks’ coin base had been spent.

Media houses speculated that the mysterious bonded courier delivered the package to Wright in January 2020 after his legal team notified the court that he had produced a list of his Bitcoin holdings. Again, this list was heavily scrutinized by the Bitcoin community and was almost identical to the list that had been provided in 2019.

In an interview with Wright published by Cointelegraph on Jan. 23, 2020, he explained that he had set up the trust to protect the funds and had deliberately decided not to be a trustee. That meant that he could not be forced to move funds by a third party. Wright also said that he was still awaiting the delivery of keys to access the funds.

Satoshi strikes back?

Wright’s provision of public addresses to the courts in January could potentially be the fuel to drive the Kleiman estate’s legal case after recent developments. On May 20, news broke that 50 BTC had been moved from an address that contained coins that had been mined in February 2009, some six weeks after the Bitcoin mainnet went live. The address contained a coin base transaction of 50 BTC, which is the transaction containing the reward to a miner.

The cryptocurrency community was awash with speculation that Satoshi Nakamoto may have been responsible for the transaction, given that the address contained coins mined so soon after inception.

Nevertheless, that summation has also been questioned by various industry participants, including renowned cryptographer Adam Back, who cast aspersions on the address being linked to one address identified in the “Patoshi Pattern.” The Patoshi Pattern was identified by Bitcoin researcher Sergio Demian Lerner, who told Cointelegraph soon after the news broke that he didn’t think the transaction had been carried out by Satoshi.

Bitfury’s Crystal also released its own insights into the transactions and echoed Back’s belief that the actions were not carried out by Satoshi. Crystal CEO Marina Khaustova told Cointelegraph that the company’s clustering tool identified that the majority of the addresses did not line up with the Patoshi Pattern address.

However, the address itself is weaved into the Wright vs. Kleiman legal battle, as it is one of the addresses provided by Wright in the preliminary list of addresses of the Tulip Trust. Wright has since denied moving the coins on May 20, while claiming the address was not among those given to the court in January 2020.

Wright was thrown another curveball just days later, as a message calling him a “liar and a fraud” was signed alongside a list of 145 addresses and their corresponding signatures. These addresses all contain Bitcoin mined in the first few years of its creation. Perhaps more damning was the fact that various members of the crypto community verified that all of the addresses were found among the list of addresses listed as part of the Tulip Trust. This has been independently verified by Cointelegraph as well.

The legal ramifications

The Kleiman estate’s legal team has wasted no time pouncing on the fact that these addresses that were listed by Wright are seemingly controlled by someone else and submitted a notice of supplementary evidence to argue that the “CSW Filed List” provided by Wright’s legal team in January was fabricated:

“Wright represented these 145 addresses were part of his bitcoin holdings and were locked in an inaccessible encrypted file. This week, the person that actually controls the private keys to those addresses used those private keys to declare that ‘Craig Steven Wright is a liar and a fraud’ and ‘doesn’t have the keys’ for those addresses — thus proving the addresses do not belong to Wright.”

The Kleiman legal team still believes that Wright has access to these Bitcoin holdings and has been hiding the true list from the court. Cointelegraph reached out to United States-based corporate lawyer Dean Steinbeck to ascertain whether the recent development could be used against Wright successfully by the Kleiman legal team. Steinbeck believes that the information will be used to demonstrate that Wright is not in control of the addresses he’s previously claimed to own:

“This information pretty much confirms what many industry pundits have thought all along: Wright is not Satoshi. This turn of events will negatively impact Wright’s claims. In order for Wright to continue asserting that he has control of these addresses, he will need to argue that either he sent the messages calling himself a fraud or he will need to argue that his accounts were hacked. Either argument is unbelievable to anyone familiar with how crypto works.”

New York-based lawyer Daniel Kelman also weighed in on the situation and the potential effect it will have on the Wright vs. Kleiman case. Kelman told Cointelegraph that these latest developments could have serious knock-on effects for Wright, saying: “The judges have already stated on record that they did not find Wright’s testimony believable.” He added:

“These addresses provide mathematical proof that Wright perjured himself. So, the question now becomes (1) whether this will result in a return of the sanctions from last summer (which were set aside on appeal) and a judgement for billions to Kleiman based on the sanctions (rather than the case’s merits); and (b) whether Wright’s perjury will be referred to a U.S. attorney to bring him up on felony perjury charges.”

As Kelman elaborated, there is far more to the story that needs to be considered and that Wright has potentially cornered himself in this dispute because of his assertions that he is Satoshi Nakamoto, adding that “the backstory to this dispute is more complicated than what we see in court papers.” Kelman believes that Wright went along with the case for the sake of keeping nChain and BSV afloat while also hoping to eventually settle, but once damages began to pile up, it no longer became an option. Kelman concluded:

“What Wright probably didn’t consider before he embarked on his defense is that he could in fact wind up on the hook for Satoshi’s billions by virtue of court sanctions for perjuring himself, which happened last summer, and he managed to have set aside on appeal. Those sanctions could now come back and hand a major victory to Kleiman.”

Nevertheless, it seems clear that these latest moves by entities controlling these legacy addresses could have dire consequences for Wright’s legal case and his reputation. Steinbeck explained that Wright could face a criminal conviction if he’s found guilty of perjury:

“If it is ultimately determined that Wright perjured himself by providing the court with knowingly false information, Wright can face severe legal consequences, including the possibility of criminal action. Perjury is considered a serious offense and is treated as a felony. If Wright is convicted on such a charge, he may be imprisoned up to five years and face hefty civil penalties.”

Source: https://cointelegraph.com/news/not-your-tulip-trust-message-calling-craig-wright-fraud-may-unlock-the-case

Blockchain

Ripple Price Analysis: Things Looking Grim for XRP as Bears Attempt To Push Below 1900 SAT

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  • XRP has moved sideways over the last few days as the bulls battle to defend $0.175.
  • A break beneath $0.175 could result in XRP unwinding toward $0.15.
  • Against Bitcoin, XRP continues to make lower lows as the sellers flirt with breaking beneath 1900 SAT.

Key Support & Resistance Levels

XRP/USD:
Support: $0.175, $0.171, $0.157.
Resistance: $0.185, $0.192, $0.20.
XRP/BTC:
Support: 1900 SAT, 1890 SAT, 1873 SAT
Resistance: 1950 SAT, 2000 SAT, 2070 SAT.

XRP/USD: Bulls Continue Defence of .5 Fib Retracement

After falling beneath the descending triangle pattern last week, XRP has continuously dropped lower until the support was found at $0.175 (.5 Fib Retracement). The price has spiked beneath this support, but the buyers managed to keep it above $0.175 for the closing price of each day.

A break beneath the support at $0.175 would create a fresh 3-month low price for XRP and would likely cause it to unwind toward $0.15.

cc-xrpusd-jul2
XRP/USD. Source: TradingView

XRP-USD Short Term Price Prediction

Looking ahead, if the bulls can defend $0.175 and rebound from here, the first level of resistance lies at $0.185. Above this, added resistance is located at $0.192 and $0.20 (100-day EMA).

On the other side, if the sellers break beneath $0.175, the first level of support lies at $0.171. Below this, added support is found at $0.157 (.618 Fib Retracement) and $0.15.

The RSI is well beneath the 50 line as the bears dominate the market momentum. For a sign of XRP recovering, look for the RSI to start to rise toward the 50 line to indicate decreasing bearish momentum.

XRP/BTC: XRP Set To Push Beneath 1900 SAT

Against Bitcoin, XRP continues to create fresh lows as the sellers attempt to push the market beneath the 1900 SAT support. It has been falling continuously against BTC over the past three months and has dropped by a total of 33% during the period.

A break beneath 1900 SAT would shift the sentiment into an extremely bearish outlook for XRP as fresh multi-year lows will be created.

cc-xrpbtc-jul2
XRP/BTC. Source: TradingView

XRP-BTC Short Term Price Prediction

If the sellers do push beneath 1900 SAT, the first level of support lies at 1890 SAT. After that, added support is found at 1873 SAT and 1834 SAT.

On the other side, the first level of resistance lies at 1950 SAT. Above this, added resistance is found at 2000 SAT and 2070 SAT.

The RIS is in oversold conditions as the bears dominate the market momentum. However, the Stochastic RSI is primed for a bullish crossover signal that would send the market higher.

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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

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Source: https://cryptopotato.com/ripple-price-analysis-things-looking-grim-for-xrp-as-bears-attempt-to-push-below-1900-sat/

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Fundamentally Strong: Bitcoin Hit These Highs Today Despite Stagnant Price Action

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The last few weeks were quite stagnant for Bitcoin in terms of price movement, considering the cryptocurrency is famed for its price action. However, while BTC price is looking pretty unexciting in recent times, Bitcoin is fundamentally strong as the network activities continue to record new highs.

Positive On-Chain Market Activities

According to insight first shared by Glassnode CTO Rafael Schultze-Kraft, on-chain market metrics including transaction counts, new addresses, active addresses, and spent outputs had positive performances yesterday.

The number of daily new addresses reached a 2-year high of 560k. The last time a similar figure was recorded was during the bull run in late 2017 and early 2018. During that period, the number of new addresses created daily was between 800k and 600k. Since then, the number has never surpassed 550k until July 1, 2020, data on Glassnode reveals.

new_addresses
New Bitcoin Addresses. Source: Glassnode

The total number of addresses on the network is now above 670 million. However, there are only 2,135 whale addresses with a balance of at least 1,000 BTC and less than 110 addresses with at least 10,000 BTC.

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Glassnode further revealed that the daily active addresses saw a spike and reached above the 1.08 million mark for the first time since January 2018 when the total recorded was 1.24 million. Active addresses are unique addresses on the network that either send or receive coins.

active_addresses
Active Bitcoin Addresses. Source: Glassnode

The surge in the number of new and active addresses caused led to an increase in hourly on-chain transactions. The daily transaction count is now at 382k. The last time Bitcoin’s daily transaction count was this high was about ten months ago. Also, the number of hourly spent outputs with a lifespan of 24 hours is at its highest level.

Hash Rate Recovering Well

Despite the recent halving, the amount of transactions processed per second has reached a one-year high. Following the third halving event, the transaction rate dropped to as low as 2.48 transactions per second. However, on July 1, the transaction rate was at 4.42 transactions per second.

The network’s computing power has also recovered from the post-halving crash. On May 15, just a few days after the halving event, Bitcoin’s hash rate recorded a massive 32% drop to 91.265 TH/s. However, as of July 1, the hash rate was solidly above 125 TH/s, making the network more secure.

Meanwhile, Bitcoin is currently hovering around $9,200, with a total market cap of $170 billion.

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Source: https://cryptopotato.com/fundamentally-strong-bitcoin-hit-these-highs-today-despite-stagnant-price-action/

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Bitcoin and Ether Market Update July 2, 2020

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Total crypto market cap added $4 billion to its value since Monday morning and now stands at $262.8 billion. Top ten coins are mostly in green for the last 24 hours with and Cardano (ADA) and Binance Coin (BNB) leading the group with 11.2 and 2.4 percent of gains respectively. At the time of writing bitcoin (BTC) is trading at $9,195 on the Bitstamp daily chart, while ether (ETH) is hovering around $228 and Ripple’s XRP nears $0.175.

BTC/USD

Bitcoin finally managed to turn the tide and formed a green candle on the daily chart after five consecutive losing sessions. The coin was in freefall since it was last rejected at $9,700 on June 23, but closed the trading day on June 28 at $9,120 or 1.3 percent higher. The coin ended the seven-day period with a 2 percent loss.

On Monday, the BTC/USD pair continued to rise and extended its gains up to $9,185. Still, it was worth noting that the leading cryptocurrency was gravitating around the $9,150 line in an obvious consolidation.

The trading session on Tuesday, June 30 was direct evidence for the above statement. BTC formed a short red candle and dropped down to $9,127. It was 3.2 percent down on a monthly basis.

The third day of the workweek was quite positive for buyers. The price of bitcoin climbed up to $9,237, but not before hitting the $9,300 mark.

In terms of trading volumes, the 24-hour values were stable in the $19-$20 billion zone from Monday to Wednesday morning then started to pick up in the evening and neared $23 billion.

At the time of writing, Bitcoin is trading at $9,205.

ETH/USD

The Ethereum Project token ETH was also under a high seller pressure since it was rejected near the mid-term downtrend line on June 23. It ended the losing streak on Sunday, June 28, and moved up to $224 after finding support in the $220-$216 zone.

The ETH/USD pair surpassed the 50-day EMA, but closed the seven-day period 1.3 percent lower.

The ether started trading on Monday by hitting the $230 mark in the early hours of the session before closing at $228 a few hours later.

On Tuesday, June 30, the leading altcoin made a short pullback to $225 but found stability near the already-mentioned exponential moving average. It closed the month of June 2.1 percent lower compared to May.

The mid-week session on Wednesday marked the return of buyers. The price of ETH reached $232 during the day and stopped at $230 at closure.

Trading volumes were relatively stable, hovering around $5 billion for the first three days of the week.

What we are seeing on Thursday morning is a slight pullback to $228.

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Source: https://btcmanager.com/bitcoin-and-ether-market-update-july-2-2020/

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