What do we know about the latest court order?


Vladislav Sopova

The Supreme Court of England and Wales ruled that Mr Wright’s claims about the alleged hack of his company’s crypto simply cannot be adjudicated “on the basis of the claim”

Yesterday (March 25, 2022), UK Supreme Court judge and senior judicial commissioner Valerie Falk, DBE, ruled out that Seychelles-based Tulip Trading Limited, a company of self-proclaimed Bitcoin (BTC) inventor Craig Wright, has no legal ground. to sue core Bitcoin (BTC) developers over the alleged hack in February 2020.

Another failure for Craig Wright?

According to the text of the court order revealed through the official portal of the High Court of England and Wales, the judge clearly rejected Craig Wright’s claims.

CSW accused a number of experienced Bitcoin (BTC) developers, including the three main administrators, Wladimir van der Laan, Pieter Wuille, Jonas Schnelli, of refusing to “take steps to enable TTL to regain control of the assetsMeanwhile, it’s still unclear whether a hack has taken place as alleged: “stolen” assets are dormant as determined by a court order.

Dame Falk stressed that even if the hack did happen and Mr Wright suffered huge losses, the defendants could not be held responsible for refusing to help him get his money back by compromising network integrity:

The fact that the BSV network is preparing to make a system change to accommodate the loss of private key access (…) does not mean that such a change, whether general or TTL specific, will affect others can be imposed.

Also, Bitcoin (BTC) veterans should bear no responsibility for failing to implement security mechanisms to protect Bitcoiners (BTC) from key losses.

As such, the court ruled that CSW’s allegations cannot even be considered legal claims:

TTL has identified no serious matter to be adjudicated on the basis of the claim. In those circumstances, the proper order is to quash the warrant of the deputy chief nurse granting permission to serve the claim form outside the jurisdiction, and to set aside service of the claim form.

First reactions: ‘This can all finally be over’

For the most part, Crypto Twitter beat CSW’s allegations and applauded the ironic tone of the court order and the deep understanding of what blockchain is, as demonstrated by the judge:

I would say Mrs Justice Falk is much better at it than some might think. The verdict is well reasoned and well presented.

WizSec, a blockchain-focused cybersecurity team, mocked the claims for their lack of formal logic:

As such, CSW threatened and filed a breach of duty lawsuit, but not only does the duty not exist, by its own updated argument the *violation* hadn’t happened, and wouldn’t happen until the court ruled in its verdict. favor.

BitMEX Research, the R&D arm of the crypto ecosystem BitMEX, is confident that this could be the final court order for CSW and its attorney, Calvin Ayre, in a years-long saga.

At the time of going to press, both Craig Wright and Calvin Ayre have remained silent as to whether the court order will be appealed, as a result of which they are refraining from commenting on the matter.

What does this mean for Web3 regulation?

First, the injunction appears to be a clear failure for Craig Wright: In fact, the court dismissed his charges on technical grounds, not legal ones.

The said ruling is one of the first documents legally confirming that blockchain developers and administrators cannot be held responsible for private key issues.

That’s what decentralization is all about: the motto “not your keys, not your crypto” has somehow been approved by the High Court of England and Wales. And this goes way beyond the umpteenth chapter in the drama “CSW vs. Bitcoiners”.



Leave a Reply

Your email address will not be published.