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Coinbase and Kraken Promote ‘Fake Bitcoin,’ Lawsuit Says

Coinbase and Kraken Promote ‘Fake Bitcoin,’ Lawsuit Says

According to an Ontier post, self-proclaimed Bitcoin inventor Craig Wright has filed a lawsuit against major cryptocurrency exchanges Coinbase and Kraken. Ontier is a law firm representing Wright, Wright International Investments Limited (WII) and Wright International Investments UK Limited (WIIUK).

Related Reading | Why self-proclaimed Satoshi Nakamoto Craig Wright must pay $100 million in damages

Filed on April 29, 2022, on behalf of Wright and its associated companies, in the Intellectual Property List of the Property and Commercial Courts of England and Wales. The law firm says it is just the first in what is expected to be a long list of lawsuits against other major crypto exchanges.

The plaintiffs, according to Ontier, believe that these platforms promoted and “encouraged” investors to “trade and invest” in “fake Bitcoin.” At least they benefited from the promotion of a “made in 2017” software implementation.

They claimed that the cryptocurrency known to most of these investors as Bitcoin is actually “Bitcoin Core.” Therefore, they added that the “only” cryptocurrency that implements the “original” BTC protocol is “Bitcoin Satoshi Vision” (BSV). The document added the following:

The plaintiffs argue that this misrepresentation by Coinbase and Kraken has caused confusion among digital currency asset holders as to the authenticity of the assets that many have purchased and traded.

BSC is a fork of Bitcoin Cash (BCH), which is at the same time a fork of Bitcoin (BTC). The asset was born out of a difference of ideas among the BCH community.

According to the document, Wright and his legal representation are seeking an “injunction” that could prevent major exchanges from offering BTC to their customers, according to the court’s verdict. The plaintiffs estimate that their case “is likely to be worth several hundred billion pounds.”

BTC moving sideways on the 4 hour chart. Source: BTCUSD Tradingview

What is Wright’s ultimate goal with the new Bitcoin demand?

According to the publication, Wright and his legal representation are trying to “prevent future misconceptions” about Bitcoin and its “true operational nature.” Simon Cohen, managing partner of the law firm, said:

These actions are undoubtedly a game changer for the digital asset market. In a nutshell, the plaintiffs’ contention is that if their digital asset does not strictly adhere to the Bitcoin protocol and is linked to the Bitcoin blockchain, it is not Bitcoin and should not be traded or referred to as such.

Cohen says the “arguments” behind the lawsuit are “simple and verifiable.” The law firm has represented Wright and his companies in a variety of cases.

These include his lawsuit against leading Bitcoin developers Peter McCormak, host of the “What Bitcoin Did” podcast, against the Crypto Open Patent Alliance and others. Wright has been involved in numerous lawsuits throughout the space.

Related Reading | Bitcoin Developers Achieve Victory Against Craig Wright, Court Dismisses Lawsuit

Coinbase and Kraken have not yet commented on the lawsuit. On the possibility that this case could force BTC off exchanges, Web3 internet lawyer Andrew Rossow told Bitcoinist the following:

I don’t think the investigation is whether Wright can prevent exchanges from offering assets that don’t conform to the Bitcoin protocol; rather, I think his statements present an interesting argument to explore about the types of assets that are currently offered on these platforms.

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