UK Judge Orders Nakamoto To Pay $516K to Sue Kraken, Coinbase; Here's Why – Coinpedia Fintech News
Self-proclaimed Bitcoin creator must pay £400,000 security deposit for legal claims against Coinbase and Kraken.
Doubts persist over Nakamoto’s financial capability and conflicting testimonies.
Kraken defends against claims, citing Bitcoin’s decentralized vision.
In a significant legal development, the self-proclaimed Bitcoin creator, who goes by the name Nakamoto, has been ordered to pay a hefty security deposit of £400,000 (approx $516,000) if he wishes to pursue his claims against the popular crypto exchanges Coinbase and Kraken.
As the crypto community watches closely, doubts about Nakamoto’s financial capability and conflicting testimonies add a layer of intrigue to this high-stakes battle in the world of cryptocurrencies.
Doubts and Hesitations
Judge James Mellor, presiding over the England and Wales High Court, expressed concern about Nakamoto’s financial ability to cover the legal expenses, citing inconsistencies in his past statements regarding his financial position. Failure to provide the required security deposit promptly could lead to the dismissal of Nakamoto’s claims within a few weeks.
Nakamoto’s claims gain further attention as he not only asserts to be the original creator of Bitcoin but also claims ownership of the fundamental concepts underlying the digital currency. In 2022, he filed a lawsuit against Coinbase and Kraken, accusing them of copyright infringement, alleging that they violated his intellectual property rights by using the term ‘Bitcoin’.
Sentiments Remain Pessimistic
Adding to the skepticism surrounding Nakamoto’s financial standing, Judge Mellor referred to statements made by Nakamoto himself, where he boasted of being financially “untouchable” by utilizing a trust to transfer assets. Despite such claims, doubts linger regarding Nakamoto’s true financial capability to handle the legal costs. The judge also questioned whether Nakamoto and his investment firm genuinely had enough cash on hand to bear the expenses of the legal case.
Moreover, the situation becomes even more complicated due to conflicting testimonies related to Nakamoto’s financial situation in connected U.S. court proceedings involving his previous business partner, Ira Kleiman. These inconsistencies have raised eyebrows and fueled further doubts about Nakamoto’s credibility.
Read More: Who is Satoshi Nakamoto?The Ultimate Quest for Bitcoin’s Creator
Kraken’s Defense: Satoshi’s Vision of Decentralization
Responding to Nakamoto’s claims, Kraken, one of the accused exchanges, mounted a robust defense. The exchange pointed out that Satoshi Nakamoto, the pseudonymous creator of Bitcoin, never intended for a single individual to control the digital currency.
Instead, Satoshi released the Bitcoin software under open-source licenses for the benefit of the entire world. Kraken views the court ruling as a significant victory in their defense against Nakamoto’s claims of controlling Bitcoin.
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