Testimony From Craig Wright’s Ex-Wife Throws a Twist in the Billion Dollar Bitcoin Lawsuit | Bitcoin News

Testimony From Craig Wright's Ex-Wife Throws a Twist in the Billion Dollar Bitcoin Lawsuit | Bitcoin News

Testimony From Craig Wright's Ex-Wife Throws a Twist in the Billion Dollar Bitcoin Lawsuit

On June 30, a jury trial was scheduled for the notorious Kleiman v. Wright lawsuit on October 13. Now a recent filing from the plaintiffs notes that when Craig Wright’s ex-wife Lynn Wright recently testified, she revealed a number of interesting findings.

Lawyers representing the Kleiman estate say her testimony brings the “infamous “Tulip Trust” into question and that it wasn’t a “‘blind trust’ as previously alleged.”

In mid-July, news.Bitcoin.com reported on the deposition of Craig Wright’s current wife Ramona Watts and her understanding of how bitcoin private keys work. In addition to the testimony from Watts, the court also heard from Craig Wright’s ex-wife who asserted that she owned a fraction of the company W&K Info Defense Research.

The firm W&K Info Defense Research is the questionable company that Wright and Dave Kleiman allegedly started years ago.

Wright’s ex-wife claims that six years ago, her interest in W&K was forwarded to Craig Wright R&D. The company Craig Wright R&D rebranded into the “Tulip Trust” and Lynn Wright ostensibly gathered a very small amount of stake in this company last month.

Testimony From Craig Wright's Ex-Wife Throws a Twist in the Billion Dollar Bitcoin Lawsuit

According to a filing submitted by Andrew Brenner from Boies Schiller Flexner LLP and Velvel (Devin) Freedman from Roche Cyrulnik Freedman LLP, the testimony argues against the Tulip Trust.

“As it turns out, and not surprisingly given the history of this case, Ms. Wright’s state court action reveals that everything Dr. Wright’s motion for summary judgment said about Ms. Wright’s alleged ownership of W&K was a lie,” the plaintiff’s lawyers wrote.

“If her sworn allegations in that state court action are to be believed, Ms.Wright, by her own admission, had no ownership interest in W&K at the time this lawsuit was filed (or at the time of her deposition in this case, or at the time Wright’s Motion for Summary Judgment was filed),” the attorney’s added.

The Kleiman attorneys also said that Ms. Wright swore she “transferred 100% of her transferrable interest in W&K to Craig Wright R&D” in December 2012. In her testimony, the plaintiff’s lawyers allege that Ms. Wright also said that Craig Wright R&D changed its name to the “Tulip Trust.” On July 10, 2020, Ms. Wright asserted that some of the alleged ownership interest was transferred back to her with “one percent interest.”

The Kleiman estate says there is no documentation that indicates a transfer and “[no] explanation by Ms. Wright why the Tulip Trust suddenly decided to transfer its claimed interest in W&K to her in the last few weeks and after Wright had moved for summary judgment.” The attorney Andrew Brenner further stated:

[The] plaintiffs have much more to say on this issue including, but not limited to, how the recent filing by Ms. Wright appears to be yet another scheme by Dr. Wright to defraud plaintiffs and this court.

The filing submitted on Tuesday is a response to Wright’s move for a summary judgment his attorney’s filed on May 8.

The lawsuit concerns the rightful ownership of the bitcoins that are allegedly held in the “Tulip Trust.” Although a great number of blockchain experts believe the trust is non-existent, it is alleged there is roughly 1 million BTC in the trust. The Kleiman estate seeks assets that far exceed $5.1 billion according to the original lawsuit filing submitted in 2018.

What do you think about the filing from the Kleiman estate on Tuesday? Let us know what you think about this subject in the comments section below.

Billion Dollar Lawsuit, Bitcoin, BTC, Court, Craig Wright R&D, Cryptocurrency, dave kleiman, Kleiman Estate, Kleiman v. Wright, Lawsuit, Lynn Wright, testimony, Tulip Trust, W&K Info Defense Research, Wright’s ex-wife

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Read disclaimer

Source: www.americancryptoassociation.com


U.S. Congressman: Coronavirus Crisis Will Make Bitcoin ‘More Important’ And ‘Stronger’

U.S. Congressman: Coronavirus Crisis Will Make Bitcoin ‘More Important’ And ‘Stronger’

The coronavirus pandemic has caused an unprecedented global economic crisis, not unlike the 2008 global financial crisis that led to bitcoin’s creation.

A number of investors have turned to bitcoin in recent months to combat the inflation they see coming as a result of the unprecedented coronavirus stimulus measures the U.S. Federal Reserve and other central banks have pumped into the system.

Now, with the bitcoin price following other so-called safe-haven assets like gold higher over the last week, U.S. Congressman Tom Emmer has said he expects bitcoin to “get stronger” as the world emerges from the coronavirus crisis.

MORE FROM FORBES’I Want To Buy All The Bitcoins,’ Portnoy Tells Winklevoss Twins In Bitcoin Interview ChallengeBy Billy Bambrough

Rep. Tom Emmer, R-Minn., is a long-time advocate of bitcoin, cryptocurrencies and blockchain and … [+] thinks bitcoin will be strengthened once the world emerges from the economic chaos caused by the coronavirus pandemic.

“As we come out of the crisis, bitcoin isn’t going away,” U.S. representative Tom Emmer (R-MN) told bitcoin and crypto investor Anthony Pompliano, speaking during an interview on Pompliano’s popular podcast, adding bitcoin and cryptocurrencies are going to “continue to become more and more important.”

“[Bitcoin is] going to get stronger. You just watch, it has value, when something has value, people are going to take risks and it’s going to advance.”

Emmer pointed to recent developments, including U.S. regulators last week authorizing banks to provide custody for cryptocurrencies, as the kind of progress that will bring bitcoin and crypto into the mainstream.

Emmer also criticized modern centralized monetary systems, going back to the U.S. departure from the gold standard in the 1970s.

“There are things happening that are going to disrupt the centralized nature of our society. We’re about to blow that whole thing up, because of the pandemic, I believe,” Emmer said.

Bitcoin is powered by decentralized blockchain technology that replaces centralized authority with a distributed network. Using blockchain, some think governments will be able to move away from top-down, centralized systems.

“I think we’re just moving into that next phase, which is why crypto, the area, excites me.”

MORE FROM FORBESIs This The Real Reason Behind Bitcoin’s Huge Weekend Flash Crash?By Billy Bambrough

After crashing in March, the bitcoin price has strongly rebounded, climbing back above the … [+] psychological $10,000 per bitcoin level last month.

Emmer has advocated for decentralized and blockchain-powered innovation in the past, calling for the U.S. government to take advantage of cryptocurrency technology.

Just this week, he co-signed a letter to the IRS, requesting the U.S. tax agency create a policy that supports the protocols used to create some cryptocurrencies, known as proof-of-stake.

Earlier this year, he raised concerns that regulation could ultimately smother innovation and called on the U.S. government to provide more regulatory clarity for the crypto industry.

“We’re not going backward when it comes to the internet superhighway,” Emmer told Pompliano. “We’ve got to go forward.”

Emmer also used the recent Twitter hack, where high-profile Twitter accounts were hijacked and used to promote a bitcoin scam, to lend his support to bitcoin.

“Bitcoin isn’t the problem,” he tweeted in the wake of the attack. “Centralized control is.”

Source: www.forbes.com

Author: Billy Bambrough


Square's Cash App Bitcoin Revenue Surges 600% to $875 Million in Q2, Profit Up 711% | News Bitcoin News

Square’s Cash App Bitcoin Revenue Surges 600% to $875 Million in Q2, Profit Up 711% | News Bitcoin News

Square Inc. has reported a significant bitcoin revenue increase in the second quarter. Its Cash App generated $875 million in revenue, a 600% increase from the previous year. In addition, Square’s bitcoin gross profit jumped 711%.

Square released its performance report for Q2 2020 on Tuesday. The company’s net revenue, including bitcoin revenue, was $1.92 billion, an increase of 64% year over year. Its gross profit, including from its bitcoin business, rose 28% year over year to $597 million. Cash App, Square’s popular payment service, achieved gross profit of $281 million, up 167% from last year.

“Customers increasingly used Cash App as a way to send and spend money,” Square wrote. “In June, Cash App had more than 30 million monthly transacting active customers, with more than 7 million spending on Cash Card.” Noting that “Bitcoin revenue and gross profit benefited from an increase in bitcoin actives and growth in customer demand,” Square’s report details:

Cash App generated $875 million of bitcoin revenue and $17 million of bitcoin gross profit during the second quarter of 2020, up 600% and 711% year over year, respectively.

The high bitcoin revenue is partly due to the accounting method Square uses. The report explains: “Bitcoin revenue is the total sale amount of bitcoin to customers. Bitcoin costs are the total amount of bitcoin that we purchase. We purchase bitcoin to facilitate the buying of bitcoin conducted by Cash App customers.” Excluding bitcoin, Cash App’s revenue for Q2 2020 was $325 million, up 140% year over year. In the second quarter last year, the app generated bitcoin revenue of $125 million.

Analyst Kevin Rooke pointed out in a tweet that Square’s second-quarter bitcoin revenue was “almost 3x the volume of Q1 2020, and 25x more than Q1 2018 when bitcoin buying went live on the Cash App.”

Square's Cash App Bitcoin Revenue Surges 600% to $875 Million in Q2, Profit Up 711%

What cryptocurrency will become the main one in a year?
BitcoinEthereum

Square further explained that Cash App benefited from disbursements of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) stimulus payments and unemployment benefits. President Donald Trump signed this stimulus package into law in March. Square revealed that a portion of its customers “direct deposited these payments into their Cash App accounts.”

“In the second quarter of 2020, we saw year-over-year and quarter-over-quarter increases in volume per active customer across our Cash App ecosystem, including peer-to-peer payments, Instant Deposit, Cash Card, bitcoin investing, and stock brokerage,” Square wrote, adding:

We believe this uplift was partly driven by government stimulus programs.

Headquartered in San-Francisco, Square Inc. is listed on the NYSE under the ticker symbol SQ. The company has offices in the U.S., Canada, Japan, Australia, the U.K., and Ireland. Square CEO Jack Dorsey is also the CEO of Twitter. Recently, the social network platform suffered a major breach that enabled the hacker to tweet from many high-profile accounts about a bitcoin giveaway scam.

What do you think about Square’s bitcoin revenue? Let us know in the comments section below.

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Read disclaimer

Source: www.americancryptoassociation.com


Bitcoin Exchanges Report Massive Withdrawals as Price Eyes $12K-Retest

Bitcoin Exchanges Report Massive Withdrawals as Price Eyes $12K-Retest

  • The amount of Bitcoin tokens held across all cryptocurrency exchanges dropped dramatically earlier this week.
  • Traders withdrew over 110,000 BTC on August 3 – a day after the BTC/USD rate plunged from $12,000 to as low as $10,500.
  • On-chain analyst Cole Garner theorized the outflow as a sign of whales buying the Sunday sell-off.
  • A $1.23 billion worth of Bitcoin tokens moved out of all the cryptocurrency exchanges a day after BTC/USD fell $1,500.

    According to data fetched by CryptoQuant, Bitcoin balances on trading platforms fell from roughly 2.50 million to 2.39 million on Monday. It was the same day the cryptocurrency rebounded from its local support level near $10,500 to approach $11,500.

    Bitcoin, cryptocurrency, btcusd, xbtusd, btcusdt

    Bitcoin held on exchanges dropped dramatically on Monday. Source: Crypto Quant

    The sequence led on-chain analyst Cole Garner to assume that Bitcoin whales–entities holding larger quantities of crypto tokens– saved the cryptocurrency from falling anywhere below $10,500. They bought the dip and later withdrew their winnings from exchanges to become “HODLERS” – a slang term for holders.

    “The amount of #Bitcoinheld on exchanges just dropped off a cliff,” tweeted Mr. Garner. “It happened two days ago – whales bought up the selloff. $BTC flowing out of exchanges is bullish.”

    As it appears, the massive withdrawal shortly followed a modest spike in the Bitcoin price. As of Thursday, BTC/USD had established a weekly top at $11,615.

    Mr. Garner’s bullish theory met with limited skepticism. One of the respondents to his tweet, CryptoQuant itself, argued that exchanges, too, periodically migrate cryptocurrencies from their hot wallets to cold wallets.

    The practice limits the risks of losing all the coins should there be a security breach.

    On Tuesday, Binance, one of the largest cryptocurrency exchanges by volume, moved nearly 68,101 BTC to a newly created wallet. CryptoQuant noted that it was still not clear whether the address belonged to a custodian service or an offline wallet. The portal nevertheless made a bullsh case, stating:

    “Even if it’s Binance’s, it could be a bull signal since Binance decided to reduce the portion of hot wallets in charge of user withdrawals.”

    The theories appeared as Bitcoin continues to trade below $12,000, its year-to-date high. Observers noted that the cryptocurrency could attempt a close above the said level as long as it trades under the macro influence.

    In retrospect, Bitcoin broke above $10,500 on increasing bids for safe-haven assets among mainstream investors. As the bond market became too expensive, yields fell to their record lows, and US dollar continued its decline, hedging assets such as gold, silver, and bitcoin surged higher.

    “If the dollar continues to depreciate, there is a high probability that #Bitcoin will continue to rise,” said Jay Hao, the CEO of cryptocurrency exchange OKEx.

    Bitcoin, cryptocurrency, btcusd, xbtusd, btcusdt

    BTCUSD rebounded by more than $1,000 from its support near $10,500. Source: TradingView.com

    That also explains why the HODLING sentiment lately surged among the Bitcoin investors.

    Source: www.newsbtc.com

    Author: Yashu Gola


    20 Institutional Bitcoin Investors Revealed, But Soon The List May Vanish

    20 Institutional Bitcoin Investors Revealed, But Soon The List May Vanish

    Barry Silbert, founder and chief executive officer of Digital Currency Group Inc. (DCG), speaks … [+] during the Skybridge Alternatives (SALT) conference in Las Vegas, Nevada, in May 2019. DCG subsidiary Grayscale is working to convert all ten of its crypto products to SEC reporting companies.

    Institutional adoption of bitcoin is here, you just have to know where to look. While cryptocurrency advocates have long worked to build an ecosystem deemed credible enough for more than just mom and pop investors, nearly 20 institutions already filed paperwork with the U.S. Securities and Exchange Commission last quarter, showing they invested in the Grayscale Bitcoin Trust (GBTC), a product of Barry Silbert’s New York-based Grayscale Investments, LLC.

    While many of the names are well-known mutual funds like Ark Invest with $4.5 billion in assets under management and Horizon Kinetic, managing $5.3 billion, according to their investor disclosure forms, the latest filings are also rife with relative newbies to the space including Rothschild Investment Corporation, Addison Capital and Corriente Advisor. “It’s very difficult to have a clean one-to-one signal on who’s entering and exiting the space,” says Ark Invest crypto analyst Yassine Elmandjra. “But there are some very interesting proxies that can gauge institutional interest.”

    The problem is, the vast majority of the institutional investors who filed the paperwork, called a 13F filing, will no longer need to do so if the SEC gets its way and raises the threshold to report from $100 million to $3.5 billion. Though bitcoin represents only a tiny fraction of the total assets that will no longer have to be disclosed if the change is implemented, the nascent industry stands to be disproportionately impacted.

    Of the 27 GBTC disclosures Forbes found only nine were more than the new $3.5 billion projection. Only three companies managed those nine funds, meaning much of the diversity of the space, the smaller institutional investors who are just starting to experiment with the new asset, would disappear. The changes are bad timing for the nascent bitcoin industry, which is just now starting to see broad institutional interest in the asset that many see as a hedge against more traditional investments, and a possible safe haven for investors as central banks around the world seem to be printing endless amounts of money.

    But as often happens in crypto, every one step back the industry takes, there’s two steps forward. In January, the same Grayscale Bitcoin Trust whose clients had already been filing 13Fs became an SEC reporting company, making it the first bitcoin firm to file quarterly 10-Qs and annual 10-Ks with the regulator, shedding new light on the internal structure of institutional bitcoin adoption.

    Today, Grayscale took it up a notch, starting the same process with the SEC for its second crypto fund, the Grayscale Ethereum Trust (ETHE), and revealing exclusively to Forbes its plans to turn each of its 10 products—also including XRP, stellar lumens, ethereum classic, litecoin, zcash, bitcoin cash, zen, and a fund for large cap cryptocurrencies—into SEC reporting companies.

    “The model we have is working,” says Grayscale managing director Michael Sonnenshein, 34. “It also continues to hold our team to an even higher standard in how we operate our business and how we diligence our partners and can really serve as a model for other asset managers.” There’ll be a 60-day comment period starting today, before, the trust could also start filing its 10-Ks. If all goes as planned, Grayscale will next work to convert all ten of its cryptocurrency investment vehicles into publicly traded assets, then turn each of those into SEC reporting companies. 

    The price of bitcoin has increased by 56% since January, according to cryptocurrency data site Messari, reaching its high for the year, $11,809, earlier this month before dropping slightly to $11,657 at the time of publication. The most recent Grayscale quarterly report saw the trust growing at a rate of $57.8 million a week, reaching a record $751.1 million in the quarter. As of yesterday, assets in GBTC totaled $4.5 billion and Grayscale’s total assets under management have increased 37.5% since the June report to $5.5 billion today.

    Due to the dearth of publicly traded investment opportunities for bitcoin, investments in GBTC can serve as a useful proxy for institutional interest in crypto-assets. But it is far from a perfect metric. The highly private New York private equity giant Fortress Investment Group has $41 billion in assets under management for 1,700 institutional investors, and earlier this year offered to buy out the creditor claims in the now defunct MtGox bitcoin exchange. $30 billion pension and endowment advisor Cambridge Associates, has been advocating for its clients to invest in bitcoin since at least 2019. 

    Famed Hedge Funders Mark Yusko and Mike Novogratz serve institutional bitcoin investors at their firms, Morgan Creek and Galaxy Digital, respectively, and Forbes 30 Under 30 member Hunter Horsley founded Bitwise Asset Management to serve institutional investors. In May Canadian firm 3iQ started trading a bitcoin fund on the Toronto Stock Exchange, joining London-based Coinshares and Switzerland-based Amun, which offer exchange-traded notes similar to Grayscale’s products in other jurisdictions.

    The massive inflow of funds to Grayscale sister company Genesis Capital, which added over $2.2B in new loan originations in Q2, is also evidence of institutional interest. But for the most part, the clients of these firms remain incredibly private, making the soon-to-be changed 13F reports on GBTC investment activity a crucial source of investor data.

    Earlier this year U.S. attorney general William Barr announced that President Trump intended to nominate SEC Chairman Jay Clayton as the next U.S. attorney for the influential southern district of New York. One of the last things Clayton did as he prepared to step down as the nation’s top regulator was publish a plan that would raise the minimum assets. “You lose a lot of transparency in the market,” says Daniel Collins, founder of WhaleWisdom, a data provider that specializes in analyzing 13F forms. “That’s why people look to the U.S. market, to establish confidence in the market for potential investors, foreign investors. And all of a sudden you’re hiding all these assets every quarter that used to be disclosed.”

    The SEC adopted the 13F form in 1978 as a way to track the investment behaviors of America’s largest investors. At the time, the value of U.S. public corporate equities was $1.1 trillion, according to an SEC statement, and the minimum size of a company deemed influential enough to track was $100 million. Between then and the announcement of the proposed changes earlier this year, the total number of those equities grew to about $35 trillion. The proposed $3.5 billion minimum is designed to be proportionately the same to the total public corporate equities as when the form was first adopted.

    Clayton was nominated by Trump to be chairman of the SEC in January 2017 and is known in the cryptocurrency community for cracking down on several initial coin offerings (ICOs) where tokens issued on a blockchain were sold in a manner similar to traditional securities. Given Trump’s cozy relationships with private companies, it’s perhaps no surprise that the presumptive nominee to be U.S. attorney for the Southern District of New York would seek to make such a business-friendly change to regulation on his way out. However, retail investors stand to lose a lot of valuable data as 5,200 13F filers last quarter are reduced to an estimated 500 if the regulatory change goes into effect, according to Collins. “You’re looking at $2.3 trillion in assets, no longer being disclosed,” he says.

    Source: www.forbes.com

    Author: Michael del Castillo


    Bitmain Delays Bitcoin Miner Shipments by Three Months as Co-Founders Battle On

    Bitmain Delays Bitcoin Miner Shipments by Three Months as Co-Founders Battle On

    The escalating internal power struggle at Bitmain is starting to have a more serious impact on its business and customers.

    • The Beijing-based bitcoin miner maker said via the official WeChat account of its AntMiner brand Thursday that customers whose equipment were due in June and July will have to wait until September and October.
    • The delay is caused by “external interference over the company’s management,” the official account said.
    • It’s important to note that bitcoin miners are typically sold via pre-orders, which must be made two to three months in advance.
    • That means customers who ordered the June and July batches could have placed their orders as early as March and April.
    • The delay comes amid the escalating fight for control of Bitmain between its two co-founders, Wu Jihan and Micree Zhan Ketuan, which has essentially “hard-forked” the firm’s bitcoin miner production.
    • Currently, the official WeChat account of the AntMiner brand is controlled by Wu’s faction within the firm.
    • Zhan was ousted by Wu in October, but returned to power in June and has controlled Bitmain’s Shenzhen-based factory since then.
    • The situation threatens to become a kind of stalemate: Zhan’s side will likely not have an easier time with shipments either, as Wu also controls the miner chip supply chain via Beijing Bitmain’s parent entity in Hong Kong.
    • Bitmain is now offering two mutually exclusive options for customers whose orders are delayed.
    • The first option is to send Bitmain a written request to speed up the delivery. If they still don’t receive their machines 60 days after the notice, they can request a refund.
    • The second is to wait patiently until the actual delivery, with Bitmain saying it will compensate customers with their theoretical mining revenue between now and delivery in the form of cash coupons to be used in future purchases.
    • Bitmain Delays Bitcoin Miner Shipments by Three Months as Co-Founders Battle On
    • Bitmain Delays Bitcoin Miner Shipments by Three Months as Co-Founders Battle On
    • Bitmain Delays Bitcoin Miner Shipments by Three Months as Co-Founders Battle On
    • Bitmain Delays Bitcoin Miner Shipments by Three Months as Co-Founders Battle On

    Source: finance.yahoo.com

    Author: Wolfie Zhao


    Testimony From Craig Wright's Ex-Wife Throws a Twist in the Billion Dollar Bitcoin Lawsuit | Bitcoin News


    Previous
    Bitcoin newsBitcoin and S&P 500 No Longer Correlated: Mati Greenspan
    Next
    Bitcoin newsBitcoin News Roundup for Aug. 6, 2020
    Did the article help? Rate it
    1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
    Loading...
    Add comment

    Get Awesome Reviews

    Coins, exchanges, wallets, crypto games, crypto cards.
    Search for reviews and share your own experience.

    GO TO REVAIN