Craig Steven Wright v Peter McCormack

Hearing dates: 23, 24 and 25 May 2022

APPROVED JUDGMENT

Introduction

In 2008, a “white paper” entitled Bitcoin: A Peer-to-Peer Electronic Cash System was published under the pseudonym Satoshi Nakamoto (“Satoshi”). It is widely believed that the author or authors went on to invent Bitcoin, releasing early versions of the software and modifying the source code until 2010, and that this person or these persons still own a significant quantity of early Bitcoin, currently worth many billions of US dollars.

There has been much speculation about the identity of Satoshi. Various individuals or groups have been proposed. One of these is the Claimant, Dr Craig Wright, a computer scientist and businessman active in the cryptocurrency and blockchain sphere who also aspires to an academic career in more than one field. Dr Wright now avows the claim that he is Satoshi.

Together with Calvin Ayre, a Canadian businessman based in Antigua, Dr Wright promotes “Bitcoin Satoshi Vision” or “BSV”, which he says reflects Bitcoin's founding purpose and values. In his oral evidence, Dr Wright referred to Calvin Ayre as his “mentor”.

The defendant, Peter McCormack, is a podcaster and blogger specialising in content about Bitcoin and associated cryptocurrencies. He publishes podcasts and blogs on his website “What Bitcoin Did”. He is also a prolific user of Twitter and, from August 2017, tweeted using the handle @PeterMcCormack.

Between 29 March and 29 August 2019, Mr McCormack published a series of tweets (“Publications 1–10 and 12–15”). There is no longer any complaint about Publication 11. I set out the tweets below, but it is now common ground that their meaning is that Dr Wright is not Satoshi and his claims to be Satoshi are fraudulent. Mr McCormack made similar claims in a video discussion hosted by an individual known as Hotep Jesus and broadcast on 18 October 2019 on YouTube, where it remains accessible (“Publication 16”).

On 17 April 2019, Dr Wright issued this claim for libel in respect of the publications which had occurred by that time. The claim was amended to include the later publications. Initially, Mr McCormack pleaded a defence of truth. However, in late 2020, he abandoned that defence, saying that, otherwise, the trial would take about three weeks and he could not afford to pay for legal representation for such a trial. Accordingly, the identity of Satoshi is not among the issues I have to determine.

The only issues remaining concern:

(a) the meaning of Publication 16;

(b) liability for republication of Publication 16;

(c) whether each of the Publications caused, or was likely to cause, “serious harm to the reputation of the claimant” within the meaning of s. 1(1) of the Defamation Act 2013; and

(d) if liability in respect of one or more of the Publications is established, relief.

The Publications and their context

I set out below the publications forming the subject matter of this claim, in context. The words complained of are underlined.

On 29 March 2019, there were two tweets from Calvin Ayre:

“yup… Dr Craig Wright is Satoshi Nakamoto…and #BSV is the only real #Bitcoin. All others are attacking Craig to sell their dysfunctional snake oil crypto products. Craig has proven this to me directly in a number of ways.”

“Craig has started filing lawsuit against those falsely denying he is Satoshi…they can all have a day in court to try to prove their fake case but the judge will rule that Craig invented Bitcoin because he did and he can prove it.”

Mr McCormack replied at 8.17pm in these terms (Publication 1):

“Can I go first?

Craig Wright is not Satoshi

Craig Wright is not Satoshi

Craig Wright is not Satoshi

Craig Wright is not Satoshi

Craig Wright is not Satoshi

Craig Wright is not Satoshi

Craig Wright is not Satoshi

Craig Wright is not Satoshi

Craig Wright is not Satoshi”

On 9 April 2019 Calvin Ayre tweeted a photograph of himself, Dr Wright and five others standing behind a conference table in what appears to be a lawyer's office. Mr Ayre has one arm around Dr Wright's shoulder and is giving a “thumb's up” sign with the other hand. The others pictured include Adam Wolanski QC, Dr Wright's leading counsel in these proceedings. The text accompanying the photograph is:

“Craig and I are polishing our muskets at today's Troll Hunting meeting in London. #CraigisSatoshi.”

Mr McCormack responded at 1.47pm on 10 April 2019 (Publication 2):

“Craig Wright is not Satohis! [sic]

When do I get sued?”

At 10.23pm on 10 April 2019, Mr McCormack tweeted (Publication 3):

“ Dear @CalvinAyre,

I would like to formally state that:

1. Craig Wright is not Satoshi

2. Craig Wright is a fraud

3. I hope as many people ReTweet this as possible

Please send legal correspondence to [Mr McCormack's home address]”

At 2.16pm on 12 April 2019, Mr McCormack replied to his own tweet as follows (Publication 4):

“@CalvinAyre mate, that is over 1k RTs and 2.3k likes, I demand my lawsuit…

…but you aren't going to do it are you? You are just trying to bully people into silence with empty threats.

Craig Wright is a fraud, bring it or go jogging.”

By 12 April 2019, Mr McCormack had received a letter from Dr Wright's solicitors complaining about his tweets and asking him to delete the tweets, undertake not to repeat the claims and apologise publicly. His response was to post a copy of the letter with a series of tweets, the first of which was at 5.04pm. These were as follows (Publication 5):

“1/ So I got my letter from Craig Wright and @CalvinAyre. This is what they are sending out to people, now you can all see.

I absolutely reject their requirements.

(PS I don't recommend anyone else does this).”

“2/ I believe that claiming to be Satoshi and promoting a fake version of Bitcoin is fraudulent. I believe this is in the public interest.

Let's go to court.”

“Before any claims of virtue signalling or clout…I'm doing this because it is the right thing to do. I've lost everything before and if I lose again, so what. BSV is a fake Bitcoin run by frauds.

Fuck them!”

Mr McCormack tweeted this at 7.28pm on 12 April 2019 (Publication 6)

“‘I was right to allege Craig Wright fraudulently claimed to be Satoshi. I DO NOT accept he is Satoshi. I am not sorry Dr Wright (are you even a Doctor?) I will repeat this.’

Going down the pub, laters Bitcoin famalam.”

Next, at 8.25am on 14 April 2019, Mr McCormack tweeted his formal response to Dr Wright's solicitors' letter (Publication 7). It included these words:

“Dear Sirs,

I confirm receipt of your letter regarding Craig Wright, who in my professional opinion is definitely not the person behind the pseudonym Satoshi Nakamoto.

I have taken legal advice. The claim is so vexatious I now have 15 lawyers who are willing to represent me on a pro bono basis.

In answer to your question, my real name is Peter McCormack and I am the person behind the pseudonym The King of Bedford.

Under my handle @petermccormack, I Peter McCormack […] have posted accurately that Craig Wright is a fraud with the interest of protecting investors from investing money in his fake Bitcoin SV under the belief that this is Satoshi's Vision. This is definitely not in my opinion Satoshi's vision.

As readers of my Twitter know, Craig Wright is a fraud in relation to his claims that he is “Satoshi,” this information has been in the public domain for many years before I started sharing it. I find it difficult to understand how I can affect the reputation of your client; this mistakenly states that he has any reputation left. It is highly arguable when reading information about him he does not.

For reference, if you Google “Craig Wright is a Fraud” there are currently 6,330,000 results. While we can allow for a margin of error, where there is smoke, there is usually fire, and here there is enough fire to make Mordor feel like a holiday in Iceland.

Your client has repeatedly and fraudulently claimed to be Satoshi Nakamoto. He did not play an integral part in the development of Bitcoin: it is highly questionable that he can in fact code. He did not produce the report ‘Bitcoin: a peer-to-peer- Electronic Cash System in October 2008.’ He did not send the first Bitcoin to Hal Finney in January 2009 and did not play an integral part in the development of Bitcoin. He may have explained his role in detail on previous occasions. However, anyone can do this, look, ‘Hey, I Peter McCormack am Satoshi Nakamoto, I created Bitcoin.” See, I just did it.

I believe Craig Wright to be a con man.

[…]

Please also let your client [sic] I have my own requirements:

[…]

2. His undertaking to delete all online publications where he fraudulently claims that he is Satoshi Nakamoto;

3. His undertaking not to repeat these fraudulent claims;

[…]

5. His agreement to join in a statement to an open court in which he apologises for and acknowledges the falsity of his claims;

[…]

Everyone he has defrauded with his false claims is plainly entitled to substantial damages in respect of his fraudulent claims.

[….]

Apology to everyone involved in Bitcoin

I was wrong to fraudulently claim that I Craig Wright to be Satoshi Nakamoto. I accept that I am not Satoshi. I am sorry. I will not repeat this fraudulent claim.”

On 15 April 2019 at 6.54pm, Mr Ayre tweeted a link to an article. At 8.29pm on 15 April 2019, Mr McCormack replied as...