Craig Wright, a self-proclaimed Bitcoin creator, has been issued a restraining order by the British High Court, effectively barring him from initiating further defamation lawsuits. On May 12, Justice Edward Mellor declared that Wright’s relentless legal pursuits had plunged several individuals and developers into a legal “hell,” marking a significant development in the ongoing “faketoshi” saga.
Legal System Weaponized
Justice Mellor’s ruling sheds light on Wright’s extensive use of the legal system as a tool of intimidation. The court found Wright’s claims to be exaggerated and often built on shaky evidence. According to Mellor, Wright’s lawsuits were designed to be grueling, costly endeavors, frequently based on false assertions of his identity as Satoshi Nakamoto, Bitcoin’s elusive creator.
“Dr. Wright had substantial financial backing from the outset of his campaign,” Mellor noted, describing the legal battles as “deliberately unequal.” This narrative aligns with accusations made by the Crypto Open Patent Alliance (COPA), a nonprofit promoting cryptocurrency innovation free from the constraints of patents. COPA filed claims in 2021, seeking protection from Wright’s threats, which targeted figures like crypto blogger Peter McCormack and Magnus Granath, known online as Hodlonaut.
Chilling Effect on Innovation
COPA’s argument, bolstered by the judge’s observations, highlights the chilling effect Wright’s litigation had on the cryptocurrency world. Developers and innovators faced significant disruption, as the fear of legal repercussions loomed large. “Dr. Wright’s actions have not only affected the individuals he has sued,” Judge Mellor pointed out, “they have also caused significant disruption to innovation in an important technology industry.” This concern echoes broader industry anxieties, as seen in the ongoing debate about regulatory clarity in staking, discussed in US crypto groups urge SEC for clarity on staking.
The restraining order is not Wright’s first brush with the British legal system. Just last year, the court ruled that he was not the author of the Bitcoin white paper nor the operator of the pseudonym Satoshi Nakamoto. In July, Wright issued a legal disclaimer on his website, distancing himself from the claim of being Bitcoin’s creator. Moreover, he received a one-year suspended sentence for contempt of court in December 2024. These actions contribute to the complex tapestry of Wright’s contentious relationship with both the law and the crypto community.
A Decade of Controversy
Wright’s legal skirmishes have spanned nearly a decade, involving high-profile figures like Ethereum co-founder Vitalik Buterin and Bitcoin pioneer Adam Back. The ongoing defamation claims have put the crypto world on edge, raising questions about the intersection of law, identity, and innovation. As explored in Crypto Coalition Tells SEC Staking Is ‘Essential Good,’ Not a Security, the intersection of regulation and innovation remains a contentious issue within the industry.
The recent court decision is a pivotal moment, potentially marking the end of Wright’s aggressive legal tactics. But the broader implications for the crypto industry remain uncertain. How will this affect investors and developers moving forward? Will it foster a more open environment for innovation, or will caution still prevail?
As the dust settles, the crypto community is left to ponder the fallout from this legal saga. With the restraining order in place, Wright’s influence over the narrative may diminish, but the reverberations of his past actions will likely continue to shape conversations about identity and legitimacy in the digital currency sphere.
The coming months will be crucial as stakeholders assess the landscape post-Wright’s legal reign. While the threat of litigation may have subsided, the industry still faces the challenge of balancing innovation with the need for accountability and clarity. The story of Craig Wright serves as a potent reminder of the complexities and growing pains in the evolving world of cryptocurrency.
Source
This article is based on: Craig Wright sent enemies to legal ‘hell,’ says judge in restraining order
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
