Craig Wright’s 1m BTC fortune to be unlocked in 9 days! Maybe…
Next week, Craig Wright is set to receive the keys for more than 1 million bitcoins, the crypto community is becoming impatient to see whether the self-proclaimed Satoshi Nakamoto will deliver on its promise. Worth more than $8 billion at press time, the unlocked Bitcoins could tank the entire crypto market.
The notorious Tulip Trust to be unlocked on Jan. 1, 2020
Craig Wright, the chief scientist at nChain and chief defender at BSV, has been at the forefront of crypto news from 2018. However, the self-proclaimed Satoshi Nakamoto could see his reign over crypto industry drama come to an end at the beginning of next year.
Wright has been embroiled in a dramatic legal battle with the estate of his former partner Dave Kleiman, with whom he allegedly mined more than 1 million bitcoins in the cryptocurrency’s early days. Kleiman’s estate has successfully sued Wright and won the rights to half of the fortune they mined, worth more than $8 billion today.
However, Wright claimed he was unable to access the funds, as they were held in the Tulip Trust, a Seychelles-based fund. But, despite having lost the keys to the funds, Wright claims Kleiman hired a bonded courier to return the keys to Wright on Jan. 1, 2020.
With just a week left before the end of the year, the crypto community is becoming impatient to see how Wright’s story about the courier plays out. If the keys to the trust were to be delivered, Wright would become the owner of 1.1 million BTC, worth over $8 billion at press time.
Wright paved the way to shift the blame to Kleiman
And while the BSV community is already gearing up for a crypto revolution, the skeptic majority has been pointing out the gaping holes in Wright’s story.
The only evidence backing Wright’s claim that he is set to receive the keys is a 2011 email from Dave Kleiman. The email, produced during the Wright v Kleiman case, claims Kleiman became the sole trustee for 1.1 million bitcoins he received from Wright. The funds, worth $100,000 at the time, were to be put in a trust managed by “at least three people but not more than seven at any time,” it said in the email.
However, the originality of the email has been widely disputed. One of the main things that raised suspicion was the use of the word “satoshi” in the text. The term first popped up in 2013 during a community discussion on how to name the smallest amount of Bitcoin.
It also seems like Wright has been paving the way to shift the blame away from him when, not if, the bonded courier doesn’t show up with the keys. In court testimony, Wright said he instructed Kleiman on how to hire a courier, but he never confirmed whether or not one was actually hired.
While the story about the courier came out long before Wright claimed he was Satoshi Nakamoto, the judge that presided over his case with Kleiman seemed to think it was also a big bag of nothing.
Judge Bruce Reinhart said back in August:
“During his testimony, Dr. Wright’s demeanor did not impress me as someone who was telling the truth.”
The chances for this to come true are slim to none, but Jan. 1, 2020 will nonetheless become an incredibly important day for the crypto industry. BSV could possibly take a hit, while the rest of the market might firm up a bit and regain its confidence knowing that 1 million Bitcoins won’t be hitting exchanges any time soon.
- Article Originally Featured In CryptoSlate
Only 1.3 million Bitcoin are left in circulation on cryptocurrency exchanges!
Christmas is coming, and Bitcoin (BTC) scarcity is at historically low levels. CryptoRank announced in a recent tweet that just 6.3% of the overall Bitcoin supply, or 1.3 million BTC, are kept on cryptocurrency exchanges.
The decreasing amount is nothing new; it’s been steadily declining since the Bitcoin halving in 2020, when the BTC block reward was cut in half. The supply of BTC on exchanges has also decreased gradually over the past year, trending downward. On October 2020, exchange wallets made up 9.5% of the BTC supply, just before the all-time highs at Christmas time, and 7.3% in July 2019. In December 2021, the 6.3 percent figure is a record low.
However, the dominance of Coinbase’s BTC wallet is also falling. The American exchange used to store more bitcoin than all other exchanges combined. Over the past year, its domination has decreased from 50.52% to 40.65%.
Following a spate of good price statistics that tie into the rising price of Bitcoin, the announcement has sparked further excitement among investors. First and foremost, owing to the fact that BTC output is shifting from a “liquid” to an “illiquid” state, monthly BTC production has frozen at 100,000 BTC. In other words, more BTC is stored in cold storage than is being mined.
Additionally, it’s crucial to remember that many retail investors and several firms keep their BTC on exchanges, demonstrating that the “illiquid” BTC category may be even smaller. Instead of keeping their BTC in cold storage, some Bitcoin holders would entrust it to exchanges instead of leaving custody of their keys with them.
Surprisingly, Binance CEO and co-founder Changpeng Zhao has encouraged hot wallets, despite the best efforts of Bitcoiners like Andreas Antonopolous to the contrary: “Not your keys, not your bitcoin.” is part of everyday BTC mantra.
This may lead to the situation in which 1.3 million BTC is “stored” on exchanges, but they are not “circulating,” and they certainly do not contribute to the liquidity problem.
Despite calls for a “Santa Rally” on the back of strong analytics, the bears are not yet out of the woods. A tweet from BullRun Invest using Glassnode data showed that 24.6% of all BTC supply is sitting above $47,000.
According to the report, close to a fourth of the BTC purchased at those prices levels are now underwater. If BTC fails to make progress into the 50s, there may be fewer gifts under the tree tomorrow.
U.S. Takes Crypto Crime Seriously with Anti-Money Laundering Reforms
The United States passed into law its Anti-Money Laundering Act of 2020, which takes effect on January 1, 2021. This brings digital currency exchange companies and other digital-asset-related businesses under the scope of regulations of the Bank Secrecy Act (BSA), which requires financial institutions “to actively detect, monitor and report potential money laundering activity.”
“I’m pleased that our anti-money laundering legislation was included as a part of this year’s [National Defense Authorization Act]. This bipartisan legislation protects Americans by depriving criminals and terrorists of the tools they use to finance illicit activity. It is the first serious overhaul of our anti-money laundering system in decades, and it makes sense to include it in the biggest, most important national defense legislation Congress passes each year,” South Dakota Sen. Mike Rounds said in a press release.
The massive anti-money laundering reforms are targeting businesses dealing with digital currencies and assets by clearly specifying the definition of a “financial institution” to “‘a business engaged in the exchange of currency, funds, or value that substitutes for currency or funds” and “a licensed sender of money or any other person who engages as a business in the transmission of funds or value that substitutes for currency.”
The reforms further define a “money transmitting business” to include those who deal with “currency, funds, or value that substitutes for currency.” Now, there are no longer loopholes that digital asset companies can use when dealing with the Financial Crimes Enforcement Network (FinCEN), the agency that enforces the BSA.
Stricter Penalties Enforced
Aside from updating definitions to ensure that digital currency exchange firms and others dealing in digital assets are clearly within the scope of the AML Act of 2020 and the BSA, stricter penalties are now being enforced for crypto criminals.
Now, those who have been found guilty of violating the AML Act of 2020 and/or BSA are faced with fines amounting to profits earned while committing the violation and possible jail time. Those guilty of an “egregious” breach are also going to be banned from taking a board member position of any financial institution in the country for 10 years. Furthermore, employees of financial institutions who commit these crimes will be obligated to return to their employer all bonuses received during the time the act was committed.
FinCEN is being given additional resources, like increasing its manpower, to ensure the enforcement of these reforms. This will further safeguard investors against crypto crimes and nail down digital currency exchange firms and other digital-asset-related businesses that do not comply with BSA regulations.
Bitcoin (BTC) Crosses 55k And Is Heading Towards 60k Fast!
Less than two months into 2021, the price of bitcoin has risen 95.4%.
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