Říj 07

Twitter Mentions of Bitcoin SV Down 87% Since May Highs

Bitcoin SV, an offshoot blockchain project that self-proclaimed bitcoin inventor Craig Wright supports, is losing touch with its core audience on Twitter. 


Cryptocurrency researchers at the TIE found that Bitcoin SV lately suffered one of its worst ‘Twitter-mentions’ deficit. Tweet volumes on the project dropped by a sheer 87 percent since its May highs, marking an all-time low. The move downhill reflected that social media users are quietly losing interest in Bitcoin SV, which is further visible in the price performance of the project’s native asset, the BSV.

bitcoin sv, bsv price

Bitcoin SV dwindles sharply against the US dollar and Bitcoin | Image credits: TradingView.com

The ninth-largest cryptocurrency by market capitalization slipped by more than 75 percent against the US dollar between June 22 and September 25. Its performance against the benchmark cryptocurrency bitcoin was similar. The BSV/BTC instrument, within the same period, plunged by 76 percent, showing that traders parked their BSV capital to other cryptos and fiat currencies.

What Drove Bitcoin SV Followers/Traders Away?

At the core of Bitcoin SV’s surplus losses is its founder Wright. The self-proclaimed Satoshi Nakamoto lost credibility before its hardcore followers after a Florida court judge savaged him for repeatedly lying under oath.

Judge Bruce Reinhart, who was hearing a case against Wright’s alleged involvement in cheating his deceased partner Dave Kleiman, noted that the Bitcoin SV founder forged documents to steal multimillion dollars worth of bitcoin. He ordered Wright to handle back all the bitcoin, which many believed were mined during the early years of the cryptocurrency, to Dave’s brother Ira Kleiman. A defensive Wright responded that he couldn’t produce bitcoin without Dave’s signatures, clarifying that they remain locked inside a so-called Tulip Trust.

The same bitcoin could prove that Wright is the true inventor of bitcoin.

“Dr. Wright’s demeanor did not impress me as someone who was telling the truth,” Judge Reinhart wrote. “I completely reject Dr. Wright’s testimony about the alleged Tulip Trust, the alleged encrypted file, and his alleged inability to identify his bitcoin holdings […] Dr. Wright’s story not only was not supported by other evidence in the record, it defies common sense and real-life experience.”

Bitcoin SV’s followers supported the project because of the weight Wright – which they believed was the real Satoshi Nakamoto – put behind it. Kleiman’s case against Wright damaged the latter’s reputation, which could have been instrumental in driving its core users away.

What do you think about Bitcoin SV’s diminishing social media popularity? Let us know in the comments below!  


Images via Shutterstock, BSV/USD charts by TradingView, Twitter: @TheTIO

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Zář 01

Sunday Digest: Bitcoin Price, Libra-Killers and Craig Wright (again)

Obviously, it’s still just about the end of summer, so French air traffic controllers have decided to go on strike. Maybe there would be less annual havoc across Europe’s skies if they ‘paid them in Bitcoin’?


Bitcoin Price: Yet More Consolidation

So BTC has spent another week trading sideways in a band around $10k. Whilst the lack of breakout will undoubtedly be disappointing for some, the further solidification of support is welcome.

The week again started strongly, with a push on Monday taking price up to $10,600. We also saw the realized market cap (which adjusts for lost coins) breakthrough $100 billion for the first time ever.

The MACD indicator turned bearish for the first time this year, but we still had plenty of bullish sentiment from analysts. Bulls were accumulating, the order book looked bullish, and Max Keiser chipped in with a $25k prediction based on the fragile stock markets.

Institutional investors were becoming more bearish according to one report, but this could all change in the autumn with the Bakkt futures launch, and final Bitcoin-ETF decisions from the SEC.

All the while Monday’s gains had been slowly trickling away. Then Wednesday evening through Thursday saw a larger crash of 9% over the course of a few hours. Support at $9,400 held and we looked for potential reasons for the sudden drop.

Still, looking at longer-term trends, there are a lot of reasons to be positive. The uptrend for the year is still very much intact and will be even if price falls back to $6k levels. Although at least one analyst believes that bitcoin won’t retrace that level, claiming that $10k is the new $6k, and is just a stepping stone on the inexorable grind upwards for bitcoin price long-term.

Technicals were good, as hash rate hit an all-time high, while BTC price finished the week trading sideways at around $9,600.

The Race Is On To Beat Facebook’s Libra

The one thing that Facebook appears to have achieved with its announcement of the Libra ‘cryptocurrency’ is galvanizing the entire crypto-community to make it obsolete before it even launches.

It seems that everyone and their mum is now working on a stablecoin for online payments and money transfer. Telegram has long mooted its cryptocurrency, but recent reports suggest it is now imminent, along with a bunch of localised stablecoins from Binance.

Even the Chinese government is (or isn’t depending on who you believe) about to launch a Libra-killer.

Meanwhile, Facebook launched its bug bounty program for Libra. Anybody who finds 100 bugs will bag themselves a cool $1 million… and with Facebook, one would imagine that there will be enough bugs to go around.

News In Brief

Goldbug Peter Schiff couldn’t wait to gloat after bitcoin’s midweek price drop, claiming it had ‘failed [the] safe haven test again’. Obviously he didn’t mention the recent Reuters report saying that $50 million of forged bars had been flooding the gold market.

An XRP advocate has suggested that users fork the cryptocurrency to prevent Ripple from repeatedly dumping its ‘reserved’ share of the tokens for profit.

Blockstream’s Samson Mow called Ethereum a technological dead-end, much to the chagrin of the Ethereum community.

And Finally…

Always nice to finish with an update into (Dr) Craig Wright’s clownery.

The Craigster didn’t have much luck in his Florida court case with the estate of Dave Kleiman this week. The judge ordered that he must hand over half of his claimed 1 million BTC and half of all his intellectual property (which arguably may not be worth all that much).

‘Faketoshi’ stated that he now ‘had no choice’ but to do this, warning that the flood of $4 billion worth of bitcoin would likely tank the market. Few were convinced by his insistence that (as Satoshi) he could do this though. Peter McCormack, currently being sued for libel by Wright in a UK court, bet $10k that Wright would/could not move any of the coins in the next year.

What do you think of this week’s Bitcoin news roundup? Let us know your thoughts in the comment section below!


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Srp 10

McCormack Vs Wright – You Can’t Harm An Already Bad Reputation

Yesterday saw the release of ‘What Bitcoin Did’ podcaster, Peter McCormack’s legal defence against Craig Wright. Wright sued McCormack for libel over tweets suggesting that he wasn’t really Bitcoin’s creator, Satoshi Nakamoto. McCormack’s defence basically states that Wright’s suit is a cynical waste of the court’s time.


Craig Wright – Hoisted With His Own Petard

The legal notice to Wright’s lawyers is mired in legalese, but still manages to be quite an entertaining read. It states that the contention that Wright has or could suffer serious harm to his reputation is fanciful.

The allegation that he fraudulently claimed to be Satoshi Nakamoto, is purely the result of his own actions. In repeatedly publicly promising and conspicuously failing to provide proof to the contrary, he has built himself a negative reputation.

…within the bitcoin and cryptocurrency sector in particular, the allegation of lying is synonymous with your client and he has no reputation in that respect which can be damaged.

The (Impossibly) Reasonable Way Out Of This

The letter goes on to say that there is a way for Wright to get exactly what he says he has always wanted. McCormack will make a public statement withdrawing his allegations that Wright’s claim to be Satoshi is fraudulent. He will also walk away from the proceedings without any contribution to his legal costs so far incurred.

The kicker? The way for Wright to achieve this is to voluntarily provide the proof, within 21 days, that he and Calvin Ayre say they have. They have said that they intend to provide this proof during the proceedings anyway, and providing them voluntarily now would “avoid the wholly unnecessary costs and delay of litigation.”

However, Ayre tweeted in April that they were “just waiting for a volunteer to bankrupt themselves trying to prove a negative and then letting Craig show the proof.”

McCormack’s lawyer points out that:

It would obviously be highly unattractive for a claimant to seek to pursue a libel claim merely in order to ‘bankrupt’ the defendant… Moreover, that cynical posturing underscores the futility of pursuing the claim when the claimant claims he can readily dispose of the issue of truth.

Not Your Keys, You’re Not Satoshi

Failing Wright’s agreement to voluntarily provide the satisfactory and independently verifiable proof that he is Satoshi, McCormack will apply for the case to be struck out.

There were also questions raised as to what connections Wright had to the ‘plaintiff friendly’ jurisdiction of the UK. In his Particulars of Claim he says that he is ‘based’ and ‘domiciled’ in England, but gives a different address to the one he has provided in his other ongoing legal battle in Florida.

This is the line of defence used by Roger Ver, who had Wright’s defamation case against him struck down last week on these grounds.

Interestingly, McCormack only got into this legal argument after openly inviting Wright to sue him. Wright had previously been targeting community member Hodlonaut, known for starting the Lightning Network Torch. This caused many to react, including Binance CEO, CZ, who delisted Wright’s Bitcoin SV form the Binance exchange.

What do think of these latest developments? Let us know your thoughts in the comment section below!


Images via Shutterstock

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Kvě 13

This Latest ‘Who Created Bitcoin’ Theory is The Craziest One Yet

Bitcoin was the creation of a programmer and drug lord who wanted to launder money, and Craig Wright is trying to steal his private keys.


Bitcoin Creator, Solotshi Nakamoto?

That was the latest wild conclusion to emerge in the debate over who the ‘real’ inventor of Bitcoin is – the entity behind the Satoshi Nakamoto pseudonym – as Wright’s multibillion-dollar court case continues.

After testimony from Wright leaked online, one user of the 4Channel forum pieced together clues to ‘reveal’ Satoshi as infamous US drugs informant Paul Solotshi Calder Le Roux.

The testimony mentioned Le Roux numerous times, with the leaked documents blocking out all but one – assumedly accidentally – of those mentions.

“He intended it simply for the purpose of money laundering (a use case which is clearly seeing fruition even today with the likes of Crypto Capital),” the user summarized.

“Unfortunately, soon after he went quiet with the Satoshi identity, he was captured by law enforcement, and he’s going to spend the rest of his life rotting in jail cell.”

So Craig Wright IS Faketoshi?

As Bitcoinist reported, Wright has purported to be Nakamoto for several years. In 2019, he has stepped up efforts to protect his reputation, launching lawsuits against anyone who disagrees with him.

At the same time, Wright is being sued for 1 million bitcoins by the estate of former business partner Dave Kleiman, relatives claiming he defrauded them.

Now, Kleiman could also figure in the conspiracy, as an accomplice of Wright who prior to his death sought to help him crack Le Roux’s wallets, which also involves a sum of around 1 million BTC.

Calvin Ayre, who supports Wright’s lawsuits and altcoin Bitcoin SV as the ‘real’ Bitcoin, is allegedly further faking a mining operation to disguise ongoing efforts to access Le Roux’s fortune.

“Craig Wright was an employee of Le Roux, who was vaguely aware of the bitcoin project. Craig was an informant who helped bring down Le Roux, and after his arrest, Craig managed… to get his hands on the wallets that hold a million bitcoins,” the user claims.

…He has been trying for years to crack them but with no success.

1 Day To The Big Reveal

As Bitcoinist noted, the idea of unmasking Nakamoto has formed a central preoccupation for some Bitcoin users.

While others are content to use his or her creation without knowledge of its exact genesis, others have sought to uncover the facts via methods such as a crowdfunding campaign last year.

Meanwhile, a dedicated website, Gotsatoshi.com, has promised to formally reveal Nakamoto’s exact physical whereabouts on May 14. Whether the event will include any extra details or proof of its assertions remains to be seen.

What do you think about this latest theory on Satoshi’s real identity? Share your thoughts below!


Images via Shutterstock

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Srp 14

Crowdfunding Campaign Aims to Discover Where in the World the Real Satoshi Is

Satoshi Nakamoto’s true identity has been a well-kept secret. Many are still on the hunt. A new crowdfunding campaign has been launched in order to hire detective agencies who will scour the globe in a public-funded search for Satoshi.


The hunt for Satoshi Nakamoto still carries on. Over the past few years, a variety of online publications and individuals have hunted the trail of the person (or people) synonomous with Satoshi.

There have been a number of theories about Satoshi’s identity, and the cryptocurrency community has always been incredibly interested when someone steps forward with something new.

Back in 2016, the virtual currency world was in a frenzy when BBC published a report concerning Dr. Craig Wright, saying he provided “technical proof” he was the elusive Bitcoin 00 creator.

Back in 2016, the virtual currency world was in a frenzy when BBC published a report concerning Dr. Craig Wright, saying he provided “technical proof” he was the elusive Bitcoin creator.

Many were skeptical of the purported evidence, and there have been a number of nuanced, and light-hearted swipes, at Wright’s claims.

Other people, like Tesla creator Elon Musk, have spoken out to quell rumors about being Satoshi. The CIA even responded to a Freedom of Information Act (FOIA) request saying they could “neither confirm or deny” the existence of documents relating to Satoshi. Some took the response as evidence the agency could possess files on the Bitcoin creator.

Now an international group of digital currency enthusiasts are raising funds to conduct an international search for Satoshi.

We Need To Find Satoshi

Posted on crowdfunding site Boomstarter.ru, the campaign is looking to order a search for Satoshi from “several independent detective agencies located in the US and Japan, as well as Europe.”

The creators said the hired agencies would have to conduct a “public and transparent account of their activities,” and mentioned that three locations were chosen because of Satoshi’s purported affiliation with these areas.

According to the creators, people have the “right” to know the identity of Satoshi. They write the need to “declassify it ourselves,” if Satoshi “does not want publicity.” However, the group explains how they pledge not to disturb the person (or persons) if Satoshi turns out to be someone “ordinary” who is “afraid of publicity.”

‘Be Sure Bitcoin Is Not A Global Deception’

The crowdfunding campaign creators list a couple of reasons why finding Satoshi is not just a “trivial curiosity.”

According to the campaign, discovering the identity of the mysterious Bitcoin 00 creator could help with its further development, while possibly solving some of the questioned assumptions behind the digital currency.

The crowdfunding campaign creators list a couple of reasons why finding Satoshi is not just a “trivial curiosity.”

The crowdfunding group also believes cryptocurrency enthusiasts should be able to know the identity of a figure with more than “1 million coins in his wallet,” and a figure who could “overthrow the market overnight” by executing transactions.

At the time of writing, the campaign was 47% funded, having raised roughly 7,103,400 Russian rubles ($104,952 USD) from 1,543 backers. Donors are able to receive a variety of rewards, including an “I Find Satoshi” pin, t-shirts, and hoodies.

The highest reward category, which was limited to one person, was already reached by press time. For 500,000 Russian rubles (roughly $7,390 USD), the donor will have a week-long tour of the country where “Bitcoin Satoshi Nakamoto will be found.”

Do you think this campaign will be even remotely successful in unmasking the identity of Satoshi? Let us know in the comments below!


Images courtesy of Bitcoinist Archives, Unsplash.

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Čvn 27

Vitalik Buterin Demands Court Challenge Against New nChain Patent

Ethereum co-founder Vitalik Buterin has openly criticized Blockchain research company nChain’s latest patent award, calling for opponents to challenge it in court.


Pure Invention?

nChain, whose chief scientist Craig Wright claims to be Bitcoin creator Satoshi Nakamoto while heavily endorsing altcoin Bitcoin Cash, received its latest European patent for what it describes as a “digital security invention.”

“This Deterministic Key Generation technique provides for improved secure communication between a pair of nodes or parties on a network, while being able to keep their private keys secret,” a press release issued June 25 claims.

nChain is attempting to create a raft of Blockchain-based tools to facilitate transactions worldwide through what it calls the “Internet of Transactions.”

The company, often via Wright as a spokesperson, continues to hit the headlines in the cryptocurrency industry for its controversial approach to marketing.

craig Wright

Last month, Wright told a conference audience in Rwanda that he “had more money than their country” while plugging nChain’s future plans.

‘Can’t Someone Attack It In Court?’

Reacting to the patent meanwhile, Buterin appeared unimpressed at the prospect of the company using it as a basis for innovation, appearing to argue it contained no new “invention” at all.

“This looks like they’re trying to patent plain old public master key-based deterministic wallets, like what we had in 2013,” he wrote on Twitter Tuesday.

“Can’t someone attack it in court with the obvious mountains of prior art?”

Buterin had previously called Wright a “fraud” for his Nakamoto claims.

Discussing its implementation, nChain claimed a hook-up with Japanese conglomerate SBI had legitimized the technology.

“We will work with select partners on projects to produce maximum benefit for the Bitcoin Cash ecosystem,” CEO Jimmy Nguyen stated, the release adding SBI and nChain were “collaborating to develop a next-generation advanced secure cryptocurrency wallet system.”

What do you think about nChain’s latest patent? Let us know in the comments section below!


Images courtesy of Shutterstock, Twitter, Bitcoinist archives

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Kvě 06

Craig Wright Possesses Technical Knowledge To Dupe Gavin Andresen

Source: bitcoin

Bitcoinist_Man in the middle attack

More and more details are surfacing as to who Craig Wright took the necessary precautions to validate his claims of being Satoshi Nakamoto. One worrying piece of evidence shows his list of certifications, which may give him the right tools to pull off a successful man-in-middle attack to sign a particular Bitcoin message.

Also read: Post-Mortem Of A Con: To Be Satoshi Nakamoto or Not To Be?

Craig Wright Accomplishments Are Concerning

While there is nothing wrong with obtaining as many certifications in the world of cyber security as possible, the list of achievements also poses some interesting questions these days. Craig Wright, who claimed to be Satoshi Nakamoto yet decided not to unveil all of his evidence in a dramatic turn of events, has a very long list of accomplishments in this area.

At the same time, there has been some speculation as to whether or not Craig Wright pulled off a man-in-the-middle attack when presenting his “evidence” to Gavin Andresen. Keeping in mind how a special laptop had to be used to show Wright was indeed Satoshi Nakamoto, there was some speculation as to whether or not how legitimate this whole scenario has been.

We will probably never know whether or not Craig Wright used some man-in-middle-attack when presenting his evidence to Gavin Andresen. However, one Reddit user dug up his list of certifications, and there are several courses taken which would provide him with enough knowledge to execute such an attack.

Two of the accomplishments obtained in 2007 stand out in particular. First of all, there is the SANS Stay Sharp Master Packet Analysis, which touches upon the subject of executing a man-in-the-middle attack by looking at data packets and making tweaks to the data transmitted. For example, intercepting data from an Electrum download on a brand new computer would theoretically be possible, to validate one has access to a particular signature allegedly belonging to Satoshi Nakamoto.

Secondly, there is the Stay Sharp: Defeating Rogue Access Points course, which would explain why Gavin Andresen was flown into London for this demonstration. Everything had to take place at a predetermined location by Craig Wright, using a very meticulous process. Not that his necessarily indicates he had gone to great lengths to set up this MITM attack, but it poses some interesting questions, to say the least.

However, there is also a case to be made as to how all of these accomplishments give Craig Wright the necessary knowledge to create Bitcoin in the first place. Now that he has withdrawn himself from revealing further evidence, the truth will never be known. Bitcoin will continue without ever knowing its creator, and so can the community.

Source: Archive.IS

Images courtesy of Craig Wright, Ritambhara

The post Craig Wright Possesses Technical Knowledge To Dupe Gavin Andresen appeared first on Bitcoinist.net.

Craig Wright Possesses Technical Knowledge To Dupe Gavin Andresen

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Kvě 06

Post-Mortem Of A Con: To Be Satoshi Nakamoto or Not To Be?

Source: bitcoin

craig Wright

The con is over. Dr. Craig Steven Wright will not provide proof he is Satoshi Nakamoto. While Gavin Andresen admits he might have been fooled, Jon Matonis stands behind Wright’s claim that he is Satoshi.

Also read: Craig Wright Exits The Bitcoin Stage With Weird Blog Post

Dr. Satoshi Exits the Building

Jon Matonis

The Economist, BBC and GQ  broke May 2 that Craig Steven Wright, whose political views Julian Assange called “amaeteur” in a 1996 e-mail, has provided proof he is Satoshi Nakamoto, the inventor of Bitcoin. Experts doubted this claim based on the ‘proof,’ but Wright promised further “extraordinary evidence” to back his assertions.

Regardless, Craig Steven Wright, whose home was raided in December by Australian tax authorities as part of an ongoing tax investigation involving a $54 million tax refund, has yet to provide cryptographic proof that he invented Bitcoin. The ways in which he tried to prove his assertion that, in fact, he is Satoshi Nakamoto, furthermore, have seemed manipulative. For instance, Wright admitted to the BBC that he purposefully wrote a “convoluted” blog post. He could have simply provided the cryptographic proof the real Satoshi would have no problem providing.

“There are much better ways, and clearer ways he could do that by signing with his PGP key or the Genesis Block receiving key,” Trace Mayer, a lawyer and early Bitcoin investor, said on his Bitcoin Knowledge podcast. Moreover, this was not the first time Wright tried to fabricate evidence that he was the creator of Bitcoin. [Bitcoin developer], Greg Maxwell, disproved his last attempt by arguing Wright had backdated a PGP key. Realistically, if Wright is Nakamoto, he should be able to sign transactions on the Genesis Block.

“[That] would be much better than what we have seen” Jonas Schnelli, Bitcoin core developer, told Mayer in an interview. “[That] would be a very clear cryptographic proof that he could be the same person…But what he showed today [contains missing pieces] to the puzzle and it was proven by some crypto-analysts within one or two hours that this proof is almost worth nothing in terms of math and cryptography.” Mayer spelled out what Wright must do to prove he is truly Nakamoto.

“He needs to come up with a message –  for example, ‘Craig Wright, Satoshi’ –  and he needs to sign that message with the private key to the Genesis Block,” Mayer explained. “And also, sign the message with one of the PGP keys that is not backdated but that Satoshi used then we would have two different authentications based on the timing of when these keys would have been created.

“It would be extremely simple, even if he could sign something or sign a simple sentence with [Satoshi’s] PGP key. That would even be better proof.”

Wright’s assertions were backed by two main participants in the Bitcoin community: Gavin Andresen, the one to whom Nakamoto originally entrusted the Bitcoin source code, and Jon Matonis, an early Bitcoin writer at Forbes. Both are founding members of the Bitcoin Foundation. That foundation, a failed non-profit by any stretch of the imagination, was originally funded by Mt. Gox, whose beleaguered CEO Mark Karpeles currently sits in a Japanese jail. Former founding and board member Charlie Shrem is in jail for abetting illegal money transmission on the Silk Road.

That leaves Andresen and Matonis as the other founding members. Each claimed, though Andresen seemed less convinced than Matonis after a convoluted blog post by Wright appeared online, they saw cryptographic proof by Wright that he is Satoshi. ‘Proof’ has yet to be delivered to the public. The confusion cost Andresen his developer status on the Bitcoin core project. No proof obtained, it’s unclear whether Andresen will receive it back.

Before the fiasco, he had commit access to the Bitcoin core protocol, meaning he could propose updates to the protocol which would then only be implemented after the network agreed to download and run the new version. Bitcoin Core developers revoked it citing a “muddled environment” in the aftermath of Wright’s claims and Andresen’s support.

“His commit rights were revoked because there is a certain risk or possibility that he is hacked,” Schnelli, a Bitcoin core developer, told Mayer.  While commit access doesn’t allow anyone to hack the Bitcoin code and change it, one with such access could create a mess of proposals which other developers would then have to clean up. One can imagine Andresen would receive commit access once more when Wright provides his cryptographic proof that he is indeed Satoshi.

There are, to be sure, other motives in revoking Andresen’s commit access; that is, his involvement in several projects seeking to fork (read: change) the Bitcoin code. Andresen has championed two different code forks – Bitcoin XT and the acid influenced Bitcoin Classic – to the Bitcoin protocol.

Trace Mayer told me: “For Matonis or [Andresen] to not retain cryptographic proof of Wright’s assertion is either intentional complicity in deception or grossly negligent and the only way such credibility damage might possibly be rectified, if it even can be at all, is if solid cryptographic proof is provided.” Andresen has stated he is assured beyond reasonable doubt that Wright is Nakamoto.

“He fits the style of person I was working with,” he said. “He can also say things that sound, at first, ridiculous…After spending time with him I am convinced beyond a reasonable doubt: Craig Wright is Satoshi.” The Economist, one of the chosen papers, left room for doubt in Wright’s claims.

We are not so sure. Although they are not completely satisfactory, Mr Wright provided credible answers to the questions which were asked of him after he was outed last year. He seems to have the expertise to develop a complex cryptographic system such as bitcoin. But doubts remain: why does he not let us send him a message to sign, for example? Perhaps he has access only to one proof: the real Mr Nakamoto could have used the Sartre text to prove his identity to one of his peers and this proof is now being used to show that Mr Wright is Mr Nakamoto. Mr Wright could have used his supercomputer to calculate the signature for this particular text in what is known as a “brute-force attack”. And then, as mentioned before, there is always the possibility that he could have obtained the keys from someone else, perhaps [early Bitcoin participants] Hal Finney or Dave Kleiman. Since both are dead, they cannot be asked.”

Cryptography experts bemoaned the lack of fact checking done by BBC, The Economist, and GQ. Since cryptographic data is easily verified with the right knowhow, why would these major publications not invest no time towards proving or disproving Wright’s “proof”?

“I don’t get why we are not looking at the facts,” Schnelli said. The publications, since they’ve been sitting on the information since December, had plenty of time to verify the claims. So, why didn’t they?

The information could have been proven in minutes and experts could conclude for sure within two hours whether or Wright was Satoshi. Wright could have used a website like Bitcoinocracy.com, where one can sign messages backed by a private key, a public key and a message, such as: ‘Craight Wright, Satoshi

Gavin Andresen Satoshi

In short, the methods of Wright have cast doubt on his assertions – even in Matonis and Andresen, who at one time or another had been totally convinced by Wright. Dan Kaminsky, well-regarded American security researcher, wrote of an e-mail exchange he had with Andresen, where Andresen seemingly backs off that he believes “Craig Wright is the person who invented Bitcoin.” As Kaminsky details:

“What is going on here?” Kaminsky wrote to Andresen. “There’s clear unambiguous cryptographic evidence of fraud and you’re lending credibility to the idea that a public key operation could should or must remain private?”

Andresen replied: “Yeah, what the heck? I was as surprised by the ‘proof’ as anyone, and don’t yet know exactly what is going on.

“It was a mistake to agree to publish my post before I saw his– I assumed his post would simply be a signed message anybody could easily verify.

“And it was probably a mistake to even start to play the Find Satoshi game, but I DO feel grateful to Satoshi.

“If I’m lending credibility to the idea that a public key operation should remain private, that is entirely accidental. OF COURSE he should just publish a signed message or (equivalently) move some btc through the key associated with an early block.”

I personally exchanged e-mails with Kaminsky, who has no problem calling Wright a “con man.”  I also spoke with Michael Perklin, a blockchain-focused security expert. He asserts there was never publicly-available proof that Wright is Satoshi. He takes it further: “All of the available facts are covered with cognitive dissonance that casts doubt on his claim.”

He continues: “[Nakamoto] wrote a trustless system that allows people to carry out transactions without the need for any trusted third party. Why, then, did he announce his proof in a way that required trust in Gavin and Jon?”

Perklin casts doubt on the circumstances surrounding the early days of Bitcoin and Wright’s public assertions.

“Satoshi Nakamoto trusted Gavin enough to transfer control of his open source project to Gavin, which took a lot of faith,” Perklin told Motherboard in a written e-mail statement. “He also trusted Gavin to be on the security mailing list and receive/address security notifications/vulnerabilities with Bitcoin, and to hold the broadcast key. Why, then, did Craig Wright not trust Gavin to hold a digital signature for a few days during a press embargo?” Perklin also highlights contradictions in Wright’s actions. For instance, Wright claims he provided proof in the way he did to protect his privacy.

“Why, then,” Perklin questions, “did he announce his identity in the first place? Why go on a BBC interview? If you were identified as Satoshi in December, got your 15min of fame, and then were forgotten, why resurface when you want to be left alone?” This sort of behavior does not fit the behavior profile of the individual who wrote as Nakamoto in the early days of Bitcoin.

“He used [extreme amounts of patience, discipline, and reasoned/tempered thought processes] to remain anonymous despite numerous opportunities to bask in the limelight,” Perklin reasons. “He asked many early adopters to refrain from advertising Bitcoin because he felt Bitcoin wasn’t yet ready for mass adoption. Craig Wright strongly implied he was Satoshi Nakamoto on a panel, apparently back-dated blog posts, and seems to have taken steps to purposely place himself in the spotlight. These two sets of personality traits are not consistent.”  Still, Perklin found other facets of the claims most bizarre.

“[Nakamoto] built a protocol that made use of multiple cryptographic digest algorithms and novel uses of public key cryptography to build bitcoin,” Perklin elucidates. “He clearly understood cryptography thoroughly. Craig Wright seems to have produced a digital signature to “prove” his identity that is a direct replay of one of Satoshi’s old transactions. Surely Satoshi would know that a replayed signature would not stand up to independent scrutiny.”

Wright promised “extraordinary proof.” Perklin promised to independently verify the proof himself “using repeatable and publicly auditable cryptographic methodologies.” Perklin planned to look at one aspect specifically. He won’t get the chance. He told me before Wright disappeared:

“I look forward to seeing which key he chooses to use so I can compare the nonce value of the block that paid the block reward to see if it fits the well-documented patterns created by Satoshi’s mining rigs,” Perklin imparts. “This type of publicly auditable validation is the only validation that I believe Satoshi would accept, and is the only one that would convince me.”

Nakamoto walked away from the Bitcoin project in 2011. Some believe he grew nervous once Wikileaks began accepting Bitcoin donations when major payment processors cut off the whistleblower organizations’ service. Andresen suspects it could have had something to do with his briefing the Central Intelligence Agency on Bitcoin around the same time.

There are still other bizarre aspects to the story. For instance, when Wright first claimed he was Satoshi, he said he invented it with a friend, Dave Kleinman. Kleinman, a Palm Beach County, Florida-based computer forensics expert, died in 2013 from complications of MRSA and never cashed out his Bitcoin position.

Kleinman, an Army veteran and paraplegic, was a computer wizard. He occasionally appeared on national TV networks for computer forensics and security interviews. Despite his knowledge of computers, a skill in demand in the early nineties, he worked as a Palm Beach County Sheriff, citing his dream to work in law enforcement.

A 1995 motorcycle accident left Kleinman handicapped and bound him to a wheelchair. He received tireless computer training, and became known as “Dave Mississippi” thanks to the many three-letter certifications after his name. He has appeared on CNN and ABC, and authored books on perfect passwords, security threats for business, and other aspects of computers. Kleinman contributed to security mailing lists, including metzdowd.com, which Nakamoto used to first introduce Bitcoin. In Late 2010, months before Nakamoto ceased contributing, at least openly, to Bitcoin’s code, Kleinman fell in the shower and would spent most of the rest of his life in medical treatment centers. Kleinman continued his work, returning to his computer soon after his many surgeries.

The first version of the Bitcoin software was released in 2009. Wright supplied Gizmodo with an e-mail he supposedly penned to Kleinman in the months before the Bitcoin paper was published: “I need your help editing a paper I am going to release later this year. I have been working on a new form of electronic money. Bit cash, Bitcoin…” it reads. “You are always there for me Dave. I want you to be a part of it all.”

Kleinman’s colleagues, though skeptical their friend invented Bitcoin, believe he had the skills to do so. Kleinman was known as a private person, generally, and his friends used “compartmentalized” and “genius” to describe him. Kleinman’s health deteriorated, and he passed away in 2013.

The Palm Beach County Medical Examiner’s Office documented a ghastly scene upon finding Kleinman’s decomposing body, including a loaded handgun and a bullet hole in his mattress, but no ammunition casing. Nobody knows who fired the gun or cleaned up the casing. The official cause of death is natural,  complications from MRSA.

Rory Cellan-Jones, BBC technology writer, explained the ultimate outcome of Wright’s outrageous claims:

“Here’s what happened. On Monday evening, I suggested to Wright’s PR firm that if he could send me a fraction of a coin from an early Bitcoin block – which of course I would return – that might show he had Satoshi’s keys. But Wright’s team came up with a different plan on Wednesday afternoon. They sent me a draft blog in which he outlined a scheme that would see Matonis, Andresen and the BBC all send small amounts of Bitcoin to the address used in the first ever transaction. Then he would send it back, in what would be the first outgoing transactions from the block since January 2009. We went ahead with our payments – I sent 0.017BTC (about £5), which you can still see in the online records. Matonis and Andresen sent similar amounts. Then we waited. And waited. Then my phone rang – with the news that the whole operation was “on hold”, with no reason given. Eighteen hours later we are still waiting for the payments to be made – and now Wright’s new blog says that is not going to happen.”

So, ultimately, Craig Steven Wright scammed Jon Matonis, Gavin Andresen and the BBC for 15 pounds.

It may matter to some people who Satoshi is. Regarding the functioning and development of the underlying Bitcoin network, though, it is largely irrelevant who Satoshi is.


Images courtesy of Forbes, The Rise and Rise of Bitcoin Documentary.

The post Post-Mortem Of A Con: To Be Satoshi Nakamoto or Not To Be? appeared first on Bitcoinist.net.

Post-Mortem Of A Con: To Be Satoshi Nakamoto or Not To Be?

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Kvě 05

Craig Wright Exits The Bitcoin Stage With Weird Blog Post

Source: bitcoin

Bitcoinist_Bitcoin Exit

There has been a lot of focus on Craig Wright claiming to be Satoshi Nakamoto as of late, and many people have inspected the blog post Wright made to legitimize these claims. But all of a sudden, he has shut down his official blog, saying he is “not strong enough for this”.

Also read: UK Law Enforcement Sources Hint At Impending Craig Wright Arrest

Craig Wright Blog Disappears With Shady Message

People active in the world of Bitcoin will have noticed how the evidence provided by Craig Wright is rather flimsy at best. Moreover, even though Gavin Andresen validated his claims, there was a lot of miscommunication between the two parties. Gavin’s post was fairly clear and honest, whereas Wright’s post was rather lackluster.

Bitcoin enthusiasts actively pursued the information he had posted and debunked it within less than a few hours. But Craig Wright was not done yet, as he was set to provide “extraordinary evidence” to the world to validate him being Satoshi Nakamoto. In fact, he even mentioned how he would move one Bitcoin belonging to a Nakamoto address to show he controls the private keys.

However, it appears as if Craig Wright has either taken his blog down, or it has been hacked by a third party. When opening the website, users are greeted with a message saying how Wright is “sorry” and “believed he could put the years of anonymity behind him.” Unfortunately, the negative attention seems to have a toll, and he continues:

“When the rumors began, my qualifications and character were attacked. When those allegations were proven false, new allegations have already begun. I know now that I am not strong enough for this. I know that this weakness will cause great damage to those that have supported me, and particularly to Jon Matonis and Gavin Andresen.”

What makes this even weirder is how the text on this web page is an image, rather than something was written. It appears this is a placeholder image cobbled together rather quickly, and it remains to be seen if Craig Wright posted this himself, or if someone hijacked the domain.Either way, this is a very strange turn of events, and it may not be the last we heard of the Satoshi Nakamoto manhunt.

What are your thoughts on this situation? Let us know in the comments below!

Source: DrCraigWright

Images courtesy of Dr Craig Wright, Shutterstock

The post Craig Wright Exits The Bitcoin Stage With Weird Blog Post appeared first on Bitcoinist.net.

Craig Wright Exits The Bitcoin Stage With Weird Blog Post

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Kvě 05

UK Law Enforcement Sources Hint At Impending Craig Wright Arrest

Source: bitcoin

Bitcoinist_Craig Wright

With all of the discussion regarding Craig Wright these days, the rest of the world is looking at this news with raised eyebrows. In fact, the UK government has not taken kindly to his “revelation”, as Wright might be facing jail time for outing himself as Satoshi Nakamoto.

Also read: I Am Satoshi: Will Dr. Wright Cause Panic in the Bitcoin Markets?

Craig Wright Remains On The Law Enforcement Radar

People who have been following the Craig Wright – Satoshi Nakamoto connection for quite some time now, will have noticed law enforcement agencies are targeting the man. Last December, when the media connected him to creating Bitcoin, his house and office were raided by Australian police. Back then, this was connected a tax advantage he had received for holding Bitcoin, which Wright claimed to have lost later on.

As one would come to expect from such a move by law enforcement, everything in his house and office was gone over with a fine-toothed comb. Given Craig Wright’s involvement in the Australian technology sector throughout the years, he has been a high-profile person in the country for quite some time now.

But Australia is not the only country in the world keeping a very close eye on what Craig Wright is doing, as the UK police have intentions to arrest him using the anti-terror legislation. Although this has not been confirmed by officials just yet, anonymous sources have leaked this information to the press.

Considering how Craig Wright was able to “show” he is Satoshi Nakamoto to the BBC and two other main media outlets, he has brought a lot of attention to himself in the past few days. This remains rather strange for someone who claims to have no interest in fame or media attention, though, but that is a topic for a different discussion.

Under the anti-terrorism legislation in the United Kingdom, the Home Secretary can impose “control orders’ on any individual suspected of involvement in terrorism. Whether or not this act can be enforced when dealing with the alleged creator of Bitcoin – which has often been associated with terrorist funding – remains to be seen, though.

One thing’s for sure; outing himself as the alleged creator of Bitcoin has painted a bullseye on the back of Craig Wright. In the end, this decision may come back to bite him in the rear, assuming the UK police wants to go through with these plans to arrest him. Moreover, it is still doubtful Wright is the actual creator of Bitcoin, as there has been no conclusive evidence so far.

What are your thoughts on these unconfirmed rumors about an impending Craig Wright arrest? Let us know in the comments below!

Source: Siliconangle

Images courtesy of Truthvoice, Shutterstock

The post UK Law Enforcement Sources Hint At Impending Craig Wright Arrest appeared first on Bitcoinist.net.

UK Law Enforcement Sources Hint At Impending Craig Wright Arrest

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