Behind the magical surge of BSV: CSW claims to have obtained key evidence to prove himself as Satoshi Nakamoto

Author: Bai Ye, Jiang Xiaoyu

Craig Wright (CSW) has always claimed that he is the creator of Bitcoin, Satoshi Nakamoto. However, he has been criticized and questioned because he has been slow to produce valid evidence to prove his identity and his style of doing things has angered many members of the cryptocurrency community. However, now, Craig Wright has revealed that he has obtained a key piece of evidence to prove his identity, that is, he has obtained the key to access the $8.9 billion worth of Bitcoin in the "Tulip Trust".

01

The Tulip Trust and the Huge Bitcoin

What is the Tulip Trust? Why is it related to Satoshi Nakamoto, and why are there so many Bitcoins in it? If I really want to tell you, it’s a long story.
Let’s make this short.

Since 2015, CSW has been claiming to be the real Satoshi Nakamoto. Because the traces he disclosed had many similarities with the Satoshi Nakamoto who was once active on the Internet, he initially gained the trust of early members of the Bitcoin community. Strangely, CSW has been reluctant to produce the signature of the Bitcoin Genesis Block. He either said that showing the signature in public would bring him personal danger, or that he could not produce the signature due to various objective reasons. This is the most critical step to prove that he is Satoshi Nakamoto.

The appearance of CSW once plunged the Bitcoin community into chaos. It was not until he got into a lawsuit that the truth of the matter became more and more clear. It turned out that CSW was Dave Kleiman's business partner. According to the various information dug up later, more and more people believe that the real Satoshi Nakamoto should be Kleiman rather than CSW. The details here are not elaborated in this article. For specific content, readers can read Carbon Chain Value's previous article "Ten Thousand Words to Reveal Australian Satoshi: A Collapsing Lie".

Unfortunately, Dave Kleiman died mysteriously in 2013. But W&K Info Defense Research LLC, the company he founded, has mined 1.1 million bitcoins and put them in a trusteeship called the Tulip Trust. You know, there are only 21 million bitcoins in total. Only 18 million have been mined so far, of which about 10 million are currently dormant. It is conceivable that if the 1.1 million bitcoins in the Tulip Trust really exist and are unlocked and flow into the market, the price of Bitcoin will be devastated.

After Dave Kleiman’s death, his brother Ira Kleiman soon discovered the problem of the inheritance. However, the cryptocurrency community was still in its early days, and Ira Kleiman was not an insider. Although he was Dave’s brother, he was not aware of the Bitcoin he owned and its potential value.

CSW took advantage of Ella's ignorance of Bitcoin. At that time, Ella Kleiman did not know that the value of these Bitcoins would be an "astronomical figure." CSW told Ella that he and Dave Kleiman jointly created and owned a large number of Bitcoins, and also jointly owned intellectual property rights. In addition, Dave Kleiman had signed some documents before his death, agreeing to transfer, sell or return his Bitcoin and intellectual property rights to CSW at that time.

At first, Ella didn’t take it seriously, but as the price of Bitcoin kept rising, Ella gradually realized what kind of wealth his brother had left him; and he found that the documents provided by CSW were all forged! In early 2018, Ella finally made up his mind to sue CSW and submitted the case to the United States District Court for the Southern District of Florida.

Under CSW's delaying tactics, the case lasted from 2018 to 2020. The reason for the repeated delays was that he once said in court that he stored the algorithm, software, and the undisclosed version of Bitcoin he was developing into encrypted files, and then divided the file keys and gave them to different people, most of which were given to Dave Kleiman, who was supposed to give the keys to a bonded courier. According to the agreement, the bonded courier needs to return the keys in January 2020.

Without this key, no one can unlock the sky-high bitcoin in the Tulip Trust, and neither Ella nor CSW can get the money. Therefore, the court repeatedly agreed to postpone the case.

Now, January 2020 is finally here.

02

CSW Provides Key Evidence to the Court to Prove Himself as Satoshi Nakamoto

According to a court document filed with the U.S. District Court for South Florida on January 14, CSW has obtained the "Tulip Trust" information and key slices provided by a third party, the guarantor courier, which means that the previously sealed, huge Bitcoin encrypted files worth up to $9.6 billion may be unlocked. It is worth mentioning that the key file guarantor courier, who is the "middleman", is very mysterious and did not provide any name information.

In another court document, Ira Kleiman's lawyer said that he only provided a list of 16,404 addresses and did not provide any information about the key. (Note: Providing an address list does not mean that you have the key.)

Unlocking the Bitcoin held by the "Tulip Trust" is the key to this case. It is reported that the file storing the relevant key information was sent by express delivery and was supposed to arrive at the court on January 1, 2020, but CSW did not confirm or deny whether this happened at the time, but only asked the court to postpone the case. On January 10, 2020, U.S. District Court Judge Beth Bloom approved his application for extension, allowing CSW to submit relevant evidence to the court before February 3, 2020.

Ira Kleiman's lawyer said that the plaintiff (i.e. Ira Kleiman) required CSW to respond to the locked Bitcoin key within ten days through seven inquiries. The plaintiff will then use these responses to seek other litigation information about related companies. During this period, the plaintiff is asking experts to review and analyze the address list provided by CSW. The plaintiff expects that they will completely "crush" CSW after getting the truth in early March 2020.

The Tulip Trust currently holds 1.1 million bitcoins and is at the heart of Ira Kleiman's case against Craig Wright, who he believes embezzled the money and forged documents, emails and other correspondence to defraud his brother Dave Kleiman's estate.

However, U.S. District Court Judge Beth Bloom expressed doubts about the "information and key slices" submitted and the amount of bitcoin involved in this case. In addition, CSW was previously convicted of contempt of court for failing to produce a complete list of his bitcoin holdings. He claimed at the time that complying with the court order was "impossible" because the bitcoins he held were encrypted through a complex "Shamir Secret Sharing Scheme."

03

Behind the Magical BSV Explosion

If these keys can really unlock the 1.1 million bitcoins held by the "Tulip Trust", it will undoubtedly drop a bombshell on the entire cryptocurrency market. It can be said that the Ella vs. Craig Wright case has become the most concerned case in the cryptocurrency circle.

It is worth noting that on January 14 (the day CSW claimed to have obtained key evidence to prove his identity), BSV, supported by CSW, started a "magical" rise, from $210 to $455, with the highest daily increase reaching 116%. At the same time, the coin price exceeded its forked counterpart BCH, becoming the fourth largest coin in the cryptocurrency market. On the same day, the price of Bitcoin, the "market index" of cryptocurrency, only rose by 7%.

In the cryptocurrency world, it is not uncommon for projects to increase by 1000% in one go. Why did BSV’s 116% increase cause such a stir? The reason is that those projects that have experienced a sudden increase generally have a small market value, are highly controlled by the market makers, and have low liquidity, so price manipulation is extremely easy. But for a project like BSV, it requires much more capital and operation difficulty to bring the market value ranking into the top four of the cryptocurrency market. While BSV was experiencing a sudden increase, many people also sold their coins. The trading volumes on the 14th and 15th were both surprisingly high, but the price of BSV remained above $400 for more than a day. The strong financial strength of the market makers behind it can be imagined.

CSW himself does not actually have enough funds to boost the price of BSV. Some people suspect that the real "financial owner" behind the BSV price manipulation is Calvin Ayre, who has been secretly funding CSW. Regarding the rise in BSV prices, Calvin Ayre has quickly responded on Twitter, pointing out that if BSV continues to rise, its market value will soon exceed BCH, and Bitcoin miners will slowly turn to BSV. (Carbon Chain Value Note: CSW and Calvin Ayre currently control about 40% of the computing power of the BSV network).

So, what do you think about the future direction of BSV?

An optimistic view from BSV community members is that CSW will unlock 1.1 million bitcoins in the "Tulip Trust" in 2020, use these bitcoins to smash the market, and then buy "real bitcoin" BSV. By then, the price of BSV will be far higher than the current price. "1,000 US dollars is nothing, now is just the beginning."

Another view is completely opposite to the former. Some people believe that as Ella presses forward in court, CSW will no longer be able to hide his true colors. Once he publicly goes bankrupt in court, the manipulability of BSV will decrease. Instead of waiting for the market to lose its appeal to the community, it is better to take advantage of the situation now. "I believe it will go up to $1,000, after all, there is a huge sickle behind it."

In fact, since Craig Wright has applied for a trial extension and has been approved by U.S. District Court Judge Beth Bloom, he can submit evidence before February 3, 2020, which means that Craig Wright has been given about 18 days of buffer period. But problems also arise. If Craig Wright cannot produce the key on February 3, or provides the wrong key, it will also bring unpredictable consequences to the currently skyrocketing BSV.

There is also a darker speculation: Even if CSW gets the 1.1 million bitcoins, he can refuse to provide sufficient evidence to the court. Because according to the previous ruling, if he has so many assets, he must give half of them, that is, 550,000 bitcoins, to Ira Kleiman. Faced with such a huge loss, CSW can completely give up the title of Satoshi Nakamoto. But before that, he can harvest the BSV community well, and then use the money harvested and the 1.1 million bitcoins to spend the rest of his life.

However, it seems that these speculations are not important at present. After all, the core fans of BSV have received returns on their assets, and they do not care about who will take over. At the same time, many BCH holders who are deeply trapped have also taken the opportunity to get out of the trap. A happy New Year will be waiting for these people.