A London court has ruled that Craig Wright’s lawsuit against bitcoin network developers to recover billions of dollars can proceed to trial. The ruling comes after Wright’s Seychelles-based company, Tulip Trading, sued the developers of three networks in an effort to retrieve 111,000 bitcoin, worth approximately $2.5 billion, which Wright lost access to due to an alleged computer hack.
Developers Owe Duties to Owners, Says Judge
The Court of Appeal ruled that developers do owe duties to digital asset owners, which should be determined in a full trial. Judge Colin Birss stated that Tulip has a solid argument that cryptocurrency is “entrusted” to network developers, who may therefore have a duty to transfer an owner’s bitcoin to safety.
Wright Claims to be Bitcoin Creator
Wright claims to be the creator of bitcoin and the author of the 2008 white paper that first outlined the technology behind digital assets, using the pseudonym Satoshi Nakamoto. This claim, however, is heavily disputed.
Read More: UK to Implement New Regulations for Crypto Assets After FTX Bankruptcy
Reaction to the Ruling
Wright expressed delight with the ruling and his lawyer, Felicity Potter, called it “a step towards a properly regulated and well-governed digital asset ecosystem.” On the other hand, James Ramsden, a lawyer representing 13 of the 14 developers involved in the appeal, stated that code writers are “incredibly nervous” about the case, as they could become liable for large sums of money if Wright wins. The outcome of the trial could affect all aspects of decentralized finance, including value tokens, non-fungible tokens, and the wider blockchain system.
The London court’s ruling paves the way for a trial to determine whether developers owe duties to digital asset owners. The outcome of the trial could have significant implications for decentralized finance and the digital asset ecosystem.
