On 17 April 2019 Dr Craig Wright, a businessman in the cryptocurrency sector, filed a defamation claim for libel. Dr Wright claimed to be Satoshi Nakamoto – one of the people, widely credited with inventing Bitcoin. He brought the claim against Peter McCormack. This claim arose after McCormack, a podcaster, published tweets and YouTube videos alleging that Dr Wright was fraudulently asserting his identity as Satoshi Nakamoto.

Initially, McCormack pleaded the defences of truth (under section 2 of the Defamation Act 2013) and publication in the public interest (under section 4)  . However, due to financial constraints, he abandoned these particular defences. Instead , he relied solely on the argument that no serious harm was caused to Dr Wright’s reputation. Under section 1 of the Defamation Act 2013, a statement is defamatory only if it “has caused or is likely to cause serious harm to the reputation of the claimant”. This provision was tested and upheld in the landmark libel case of Lachaux v Independent Print Limited [2019].

However, Mr Justice Chamberlain ruled that Dr Wright was indeed Satoshi Nakamoto and that the publications by McCormack had indeed caused serious harm. Nevertheless, despite ‘winning’ the case, the Judge awarded Dr Wright nominal damages of a mere £1. He explained this was a result of Dr Wright’s conduct during the trial, which involved using falsified evidence. Case closed!

The case has, however, resurfaced due to recent rulings made by Mr Justice Mellor in a separate case, Crypto Open Patent Alliance v Wright [2019]. Ultimately, these rulings have revealed that Dr Wright is, in fact, neither Satoshi Nakamoto nor the creator of Bitcoin.

COPA filed against Dr Wright for forgery: seeking and ultimately obtaining declaration that Dr Wright was neither his claimed identity of Satoshi nor the creator of the cryptocurrency. The action by COPA aimed to end Dr Wright’s campaign of litigatory threats of issuing defamation claims against those who questioned his identity, as McCormack did previously (unsuccessfully).

From these later rulings, the fraudulent nature of the defamation claim that Dr Wright succeeded in against McCormack, is now exposed. Additionally, the judgment further served to highlight Dr Wright’s true intent: to silence those challenging his alleged identity as Satoshi.

Consequently, in light of these recent rulings, McCormack applied to the Court for a Worldwide Freezing Order against Dr Wright which was heard by and duly granted by the same Mr Justice Mellor on 5 July 2024. The Judge acknowledged that all costs incurred in the defamation claim stemmed from Dr Wright’s – eventually proven – lie. Subsequently, this ruling allowed McCormack to proceed in securing the £1.548 million that is owed to him.

Thus, the rulings in this case set a significant precedent that discourages the misuse of defamation law as a tool for intimidation and silencing, which Dr Wright sought to exploit. His initial victory was overturned, and Mr Justice Mellor openly condemned such misuse in his judgment.

For more information on the defamation claim process and our reputation management legal services, please see the services section on our website or call +442074275970.