Major legal systems have been floundering to create a regulatory framework that can be applied across the blockchain industry. The lack of regulation and an airframe to control the flow behind the blockchain has led the world to witness current court cases within the crypto community with scrutiny, having these likely to provide precedence for the development of future regulatory framework.
To illustrate the current industry situation, we might go over the infamous case against the self-proclaimed Bitcoin creator Craig Wright.
US Judge Beth Bloom has denied Wright’s request to scuttle a lawsuit filed against him because of past testimonies and his credibility before entering the court, according to a court filing from August 15, 2019. The same day, Wright filed a motion that challenges the Southern District of Florida’s jurisdiction over an ongoing lawsuit pursued by the estate of Craig Wright’s former business partner – Dave Kleiman, who passed away earlier this year.
Wright was alleged by Kleiman’s brother Ira to have transferred 1.1 BTC (approx. $11 billion at press time) through fraudulent contracts under his control, including emails and business relationships. The lawsuit was first filed in 2018, resulting in a back-and-forth claims between both parties, followed by a combative court appearance by Craig Wright.
Wright has claimed that he is the original inventor Satoshi Nakamoto, using the pseudonym years ago. The claim has faced an appalling criticism. Wright has pursued multiple lawsuit, chasing his critics in court. He has sued investor Roger Ver.
Craig Wright argues that the court doesn’t have subject matter jurisdiction over the proceedings. He claims an entity oversight was granted on W&K Info Defence Research – a Florida-based, now a defunct firm, having foreign national as its “director”. US Judge Bloom has stated that Wright “failed to provide any credible evidence showing a lack of diversity.” Bloom has provided five statements where Wright obfuscates the ownership structure of W&K.
“In weighing the evidence, the Court does not find the Defendant’s testimony to be credible,” Bloom said.
The Judge said now Wright insists that “three additional parties may be members of W&K”, whilst the same people and entities destroy jurisdiction.
Filed back in September 2018, Blockchain.com has filed documents claiming trademark infringement, false advertising and unfair competition by Paymium and its native platform Blockchain.io. Motions by Paymium to dismiss the case have been denied by the New York Southern District Court. The court has also found false statements on filings with the SEC (U.S. Securities and Exchange Commission) by Paymium.
Traders sued Coinbase back in March 2018. The company claims Coinbase has committed fraud, market manipulation and insider trading in relation to the Bitcoin Cash (BCH) markets. The claims have since been dismissed by District Judge Vince Chhabria. If the case continues, traders will need to base their claims on a negligence lawsuit.
Another software giant has filed a lawsuit against CryptoOracle – a blockchain startup, alleging it with cybersquatting and trademark infringement. Oracle’s complaint claims the startup selected its name to gain on Oracle’s reputation.The software giant first tried to resolve the issue outside of court with a cease-and-desist letter, resulting in CryptoOpracle filing to trademark its name.