Defense attorneys representing 12 Bitcoin (BTC) core developers in the lawsuit filed by Craig Wright have argued that false ownership claims to Bitcoin could expose him to liabilities related to the 80,000 stolen Bitcoin from Mt. Gox. Wright, who claims to be the mysterious Satoshi Nakamoto, has filed a lawsuit against the developers, asserting ownership of 111,000 BTC allegedly stolen from the Mt. Gox exchange.

Wright’s claims are made through his company, Tulip Trading Limited. However, the defendants have filed a preliminary application that challenges the validity of Wright’s claims. The defense argues that Wright is not the actual owner of the Bitcoin, which could require him to prove ownership if the court sides with the defendants.

In a statement released on Monday, it was revealed that Wright has been accused of fabricating documents to support his claims in court. The defendants are seeking to have Wright’s claim struck out on the grounds of fraud and abuse of process. They also request disclosure and case management directions to determine the issue of fraud as a preliminary matter.

In addition to challenging the ownership claims, the filing demands that Wright make a payment of $1.6 million as security to cover costs if the case is dismissed.

The defense lawyers, led by Timothy Ellis, have further argued that if Wright asserts ownership of the assets, he essentially admits to stealing 80,000 BTC worth around $2 billion in 2014 during the Mt. Gox exchange hack. They highlight that the Bitcoin in the address specified by Wright is widely believed to have originated from that hack. The defense also notes that the owners of these assets will likely face pressure to sell, which could negatively impact the market.

The 12 Bitcoin developers are being represented by the Bitcoin Legal Defense Fund, established by former Twitter CEO and Bitcoin enthusiast Jack Dorsey.

Meanwhile, speculation has been growing regarding the repayment of Mt. Gox creditors, expected at the end of October 2024. Mt. Gox infamously collapsed in 2014 after losing 850,000 BTC due to a security breach. Now, after nine years, the repayment deadline is finally within sight. Industry experts predict that many creditors will choose to sell, which could lead to a downward market pressure.


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