Bitcoin (BTC) price could face fresh volatility if Craig Wright's giant $2 billion tax bill comes from dumping 200,000 coins on the market.
Wright, who faced the law after allegations he stole $10 billion from former business partner Dave Kleiman, must now pay his widow Ira half of that sum, or 500,000 BTC.
The payout, ordered by Magistrate Judge Bruce Reinhart, will attract a tax rate of 40%, which Kleiman’s estate will have to pay.
Wright claims estate tax will force Kleiman to sell Bitcoin
While the Australian claimed he would not sell $5 billion worth of BTC on the open market, which could lead to a crash, the source of the additional $2 billion remains unknown.
The alternative, which he did not discount in an interview with fintech magazine Modern Consensus, would be for Ira Kleiman to pay in cash in return.
“Whoa! The estate tax is 40%. Unless Ira has $2 billion in cash, he will have to dump 2 million BTC to pay the taxes,” the interviewer exclaimed in the first exchange with Wright since the court order.
Wright’s response was uncharacteristically short.
“Yeah,” he said.
Based on thin Ayre?
The ruling brings to a head a debacle which has dragged on for years and involved an increasing number of third parties far removed from Wright and his entourage.
In the face of multiple claims of fraud on social media, Wright even began suing those who disagreed with his alleged proof he created Bitcoin. Those lawsuits came to nothing, while this week, those publicly supporting Wright’s original statements evaporated.
Only Calvin Ayre, the major supporter of Wright’s favored altcoin, Bitcoin SV (BSV), continued to argue he was Nakamoto.
“The judge ruled Craig and Dave are Satoshi. This is not accurate but its enough to have Craig accurately be referred to as Satoshi as he is saying and this will likely be appealed,” he wrote on Twitter.
Large numbers of responses then immediately dismissed the comments. United Kingdom-based entrepreneur Alistair Milne described Ayre’s words as flat-out lies.
“The US court *did NOT* rule that Wright/Kleiman were Satoshi Nakamoto. Anyone telling you otherwise is either insane or a liar,” he tweeted.
In what will be a source of personal satisfaction to Wright’s previous legal victims, meanwhile, one person present at the hearing concluded it was now not libellous to label him a fraud.
Citing testimony from Kleiman, Katie Ananina wrote in a digest of the proceedings:
“I now know the way to say #craigwrightisafraud and don't get in trouble. It's been said in a Federal Court.”
Ananina noted the judge also threw out Wright’s claim he would be able to prove he had access to the private keys bolstering his Nakamoto claim by January 2020.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Recommended Content
Editors’ Picks
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC declines as resistance emerges near all-time high
Bitcoin and Ethereum are approaching their key support levels, and a sustained close below these marks could lead to further declines.
TON set to launch synthetic Bitcoin to boost its DeFi solutions
TON revealed its plan on Thursday to launch a synthetic Bitcoin token on its blockchain, allowing users to trade, stake, and earn yield using BTC. Following the announcement, TON is down over 3%.
Maker Price Forecast: MKR could stage 40% rally
MakerDAO is up 2% on Thursday and could be set for a 40% rise in the coming weeks if it successfully maintains an extended move above the descending trendline of a falling wedge. On-chain data also supports the bullish outlook after a four-month-long decline.
USDT market cap crosses $120 billion as stablecoins continue their uptrend
The stablecoin market cap continued its uptrend in October, characterized by USDT reaching a $120 billion market cap, according to a CCData report on Thursday. This indicates that investors are preparing liquidity to fuel more demand.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.