Defending Bitcoin developers in high-profile claim brought by Craig Wright

We acted for 13 software developers in defence of claims brought by Dr Craig Wright, who alleged he was the creator of Bitcoin and that they had infringed his intellectual property rights. The High Court comprehensively rejected Wright’s claims, bringing certainty to a long-running dispute that had caused consternation within the open-source development community.

The challenge

Dr Wright claimed to be Satoshi Nakamoto, the pseudonymous author of the 2008 Bitcoin White Paper and creator of the Bitcoin system. On that basis, he brought claims against key software developers of the Bitcoin system, alleging infringement of his intellectual property rights through their continued contributions to the Bitcoin protocol.

The developers were involved in a five-week preliminary issue trial to determine whether Wright was, in fact, Satoshi Nakamoto. The claim was high-profile and technically complex, with a potential valuation running into the hundreds of billions of pounds. The case attracted global coverage from the press and threatened the ongoing legitimacy of contributions to open-source software, particularly in the development of decentralised technologies.

Our approach

We were appointed to act for the 13 individual developers because of our track record in complex, reputationally sensitive disputes, and our ability to handle novel legal issues that span intellectual property, procedural law, and technology. The developers were joined, in June 2023, to a trial listed in February 2024, so the claim required us to act quickly and deliver tangible results in a compressed timetable, to meet Dr Wright’s ever-changing arguments head-on. 

Our tightly coordinated defence strategy included:

• preparing and leading the presentation of key technical evidence that was central to discrediting Wright’s claims;
• managing a series of complex hearings that include short-notice disclosures, adjournment attempts, and significant procedural challenges;
• securing two successful applications for security for costs, totalling more than £1.4m; and
• obtaining a post-trial freezing order worldwide.

The outcome

On 20 May 2024, Mr Justice Mellor handed down a detailed 1,736-paragraph judgment firmly rejecting Dr Wright’s claims. The court concluded it was “overwhelmingly obvious” that Wright was not Satoshi Nakamoto. The claim against the developers was dismissed as “totally without merit”. Subsequent attempts by Dr Wright to appeal were also dismissed as totally without merit by the Court of Appeal.

The ruling brought clarity to one of the most significant and persistent legal disputes in the cryptocurrency sector. It protected the integrity of open-source development, ensuring that developers could continue their work free from litigation, helping to restore confidence across the Bitcoin ecosystem.