Jury Deliberations (click to expand)

The jury was in deliberations all week but failed to reach a verdict. Over the course of the week's deliberations, the jury provided multiple notes to the court which are pubically avaiable. Through these notes, we learn that the jury sought clafirication on the definition of specific counts like "unjust enrichment", inquired into the current state of assets owned by various relevant entities, and informed the court that they "do not feel comfortable adjucating (sic) an amount". Unable to arrive at a verdict, the jury was issued an Allen charge by judge Bloom, which encourages the jury to fulfill their civic duty and reach a verdict. Despite the Allen charge, the jury has still been unable to agree on a verdict at this point.

They will return on Monday to continue deliberations. From Unbounded Capital's point of view, the liklihood of a mistrial and/or settlement are much higher than we originally anticipated.

We will continue to keep you updated with in and out of court updates as things develop.

Thanksgiving Holiday Break (click to expand)

Jury deliberation continues on Monday November 29.

Jury Deliberation (click to expand)

• No decision today. The jury was dismissed for the night and the US holiday is keeping us out of the courtroom until next Monday the 29th.
• Jury verdict form availble for reference at this link: https://www.courtlistener.com/docket/6309656/800/2/kleiman-v-wright/

Closing Arguments (click to expand)

• The plaintiffs and defense each had 90 minutes to present their closing arguments, summarizing the case as they see it.
  • Defense argues that evidence for a working relationship between CSW and Dave from before Bitcoin did not include work on Bitcoin
  • "If it doesn't make sense, you vote for the defense." - Andres Rivero
• Jury instructed on the laws for each coun and the burden of proof required
  • Unanimous decisions required by the jury

5:34 PM EST (CLICK TO EXPAND)

• CSW cross examination by Plaintiffs
  • Both the 60 page and 20 page versions of the Bitcoin whitepaper were shared with Dave
  • Craig admits to having had servers at home, in Malaysia, Bagnoo, Lisarow, and Churches
  • ATO didn't accept Craig's 2009 Bitcoin write-offs
  • Craig confirms the IP address discussed in the morning is indeed Jamie Wilson's
• The Defense rests
  • Both sides briefly debate the term "partnership" and how it should be described to the jury for deliberation

1:00 PM EST (CLICK TO EXPAND)

• Defense examination of CSW
  • States he didn't form a business with Dave Kleiman to "invent Bitcoin"
  • Born in Brisbane
  • Parents divorced at 5
  • Developed a good relationship with maternal grandparents, especially his grandfather
    • played around with Ham radio and other technology with grandfather
  • Knows coding languages Assembly, Forth, Fortran, C...
  • Coded commercially for the Air Force, K Mart, Australian Stock Exchange, several other companies
  • Built "casino software" in the late 90s
    • had issues with some of the employees at DeMorgan
  • Started actively working on Bitcoin in 2006
  • Had discussions with Alan Grainger about Bitcoin in 2007
  • Timeline set forth for creation of Bitcoin:
    • finish the code - August 2008
    • finish the "doc" (the Bitcoin whitepaper) - October 2008
    • run tests - November/December 2008
  • Started coding Bitcoin in 2007
  • Repeats once more that Dave Kleiman couldn't code
    • repeats once more that Dave saw the Bitcoin whitepaper prior to the public announcement
  • Says Hal Finney helped with the code early on
    • Wei Dai also "sent crypto snippets"
  • Bitcoin whitepaper was drafted March 2008
    • was edited down in May 2008
  • Donald Max Lynam saw the first draft of the whitepaper
  • Gareth Williams saw the 2nd draft
    • Dave Kleiman did not see the second draft
  • Dave Kleiman did see the 3rd draft, "and a few more versions"
  • Dave made edits on the "grammar and wording" of the paper
  • Hal Finney and "Bear" helped debug Bitcoin early on
    • Wei Dai assisted with "just one line of code"
  • Gavin Andresen also assisted, although it was later on, after the launch of Bitcoin
  • Spent $600k AUS on mining equipment and $11k AUS in monthly electricity fees in 2009
  • Asked family, co-workers, university friends and Dave Kleiman to mine Bitcoin early on
  • The court is shown a 2008 email from CSW to Dave
    • from craig@rcjbr.com
    • "I need your help editing a paper I am going to release later this year... bit coin, bit cash"
  • Defense notes that the email came from a site who's domain name wasn't purchased until 2011
    • IP address points to the doc from that email having come from where Jamie Wilson resided at the time
  • The court is shown Craig's 2009 tax return, in which he claims $2.2m in capital gains
    • essentially sold the Bitcoin software to one of his companies, valued it at $2.2m at the time, and paid tax on it

4:05 PM EST (CLICK TO EXPAND)

• Cross examination of Dr. Klin
  • Was contacted in April 2020 by the defense to evaluate CSW for autism
  • "He was a polished, Steve Jobs type visionary?"
    • "Yes"
  • CSW told Dr. Klin he had also been evaluated at age 17
• Court adjourns for the weekend, Dr. Klin to return to the stand Monday morning

12:57 PM EST (CLICK TO EXPAND)

• Examination of David Kuharcik
  • Dave only listed his work on Computer Forensics on his tax return
  • Never issued a K1 to CSW
  • Never had W&K as a client
  • Never filed a tax return that mentioned Bitcoin
• Examination of Dr. Ami Klin
  • Works at Marcus Autism Center
  • Evaluated CSW for autism
  • Has had a focus on autism with high intellect
  • Describes autism as a genetic brain condition that impedes communication and social skills
  • States that CSW has "classic Aspergers"
  • "I used best practices for diagnosis" of CSW
    • Also engaged a long time colleague
  • Says that CSW has an obsession with detail, so much so that himself harm over it in many situations

5:05 PM EST (Click to expand)

• Kimon still on the stand
  • Did not ever talk about Bitcoin with Dave
  • Knows of CSW
  • Dave talked about CSW with "great pride"
  • Dave never menioned Bitcoin at all
  • Never got info about Bitcoin from Dave, despite Ira's claims to the contrary
  • Dave could not have coded or programmed Bitcoin
  • Kimon did not know of Ira
  • Kimon never met Ira
  • Dave never said he was making IP with CSW
  • Kimon has no knoweldge that Dave helped with Bitcoin
  • Kimon and Dave were friends, not financial advisors to eachother
  • Dave always had his computer, sometimes multiple, sometimes powerful
  • Dave was a private guy
  • Kimon met with Defense before deposition
  • When asked if Dave could have helped create Bitcoin by the defense Kimon initial said "yes"
• Carter Conrad on the stand
  • education in computer forensics
  • worked in info security since the 90s
  • Known Dave since 2006
  • initially colleagues with Dave and then became friends
  • Spoke daily with Dave for years
  • Visited Dave at home
  • Dave needed help and had someone help him at home
  • Had a business with Dave in 2012, Dave was attracting work but was mostly in hospital
  • Excited to work with Dave
  • Dave needed help to get things done
  • Had opperating agreement with Dave, defined ownership, revenue, expenses, and profits AND IP
  • Business with Dave had an accountant
  • Visited Dave many times in the hospital
  • Dave never mentioned Bitcoin during those visits
  • Dave mentioned CSW to him
  • Dave mentioned his and CSW's non-bitcoin whitepaper
    • Dave never mentioend anything to do with Bitcoin
  • Dave never said CSW stole from him
  • Dave's financial situtation was dire
  • Conrad never paid for Dave's bills
  • Ira sued Conrad personally as well as his and Dave's business
  • Does not know if Dave had Bitcoin
  • Conrad emailed people to let them know Dave died, including CSW
  • Many responded quickly, including CSW
  • Did not hear from CSW after the intial response
  • February 2014 CSW emailed Conrad about a business that mined Bitcoin
  • Discussion of GICSR Trust
  • Didn't know that CSW had secured W&K's IP before he contacted Conrad about it
  • Did not share information with Ira because he did not know what W&K was
  • Showing signatures purportedly from Dave, Conrad does not think they look like Dave writing
  • Dave was known for his cryptography and foresncis
  • Dave was on and off with his productivity in the hospital
  • he worked in the hospital
  • Dave remotely controlled his computers from the hospital
  • Dave would "use scripts" but Conrad not sure if he coded them
  • Business with Dave was not secret
  • Dave was amenable to contracts
  • Dave did not like asking for help
  • Dave having Bitcoin but living poor does not make sense to Conrad
  • Dave would not take from a partner
  • Dave would honor an agreement to save if one was made
• David Koharcik on the stand (via zoom)
  • Dave's CPA and friend
  • Met in the mid 80s
  • Did Dave's taxes as a CPA, some tax planning
  • Important to complete accurate tax returns to remain compliant
  • First prepared Dave's taxes in the 90s
  • Did them until Dave's death, every year with no exception
  • Prepped Dave's 2010 tax return
    • business income $39,000 net $14,000

1:20 PM EST (Click to expand)

• Dr. McIntyre on the stand
  • detailing Dave's condition at the end of his life
    • very bad condition
  • Dave had his computer which he used to "work" and watch movies
  • In March 2013 Dave had leave of absence, no one heard from him, he was "irregularly discharged"
  • He was not considered ready for discharge due to his need for constant care
  • McIntyre did not speak with Dave's friends about Dave
  • Read Dave's notes to get a sense of his mental state
  • He was not asked to evaluate Dave's brain
  • Lots of medical notes about Dave mention him being "on his computer"
  • It was impossible for Dave to work "a lot" at the hospital
  • Dave denied some medical care so he could work
  • Dave spent 900 days in hospital, 14 under anesthesia
  • no record that Dave had any mental impairment due ot drugs
  • ~10,000 pages of medical records introducted to McIntyre
  • 25 mentions of "computers" in Dave's notes
  • Laywer hammering on 25 mentions out of 10,000 pages
• Kimon Andreou on the stand
  • edu background in finance and info systems
  • IT and cybersecurity career at General Motors
  • Knew Dave sine 2002, they were coworkers
  • Dave would ask Kimon for programing help
  • Dave could not code
  • Dave and Kimon were best friends
  • Dave's hospitalization impacted his work
  • Common for Dave to miss extended time due to infection
  • Kimon would visit Dave at hospital almost every day after work
  • Dave was open about business with Conrad and Paige
  • Dave was not a programmer
  • Kimon would tease Dave about his inability to code
  • Dave was proud of his papers and would discuss them
    • this includes his papers with CSW which he mentioned and was proud of
  • Dave's thumb drive never left his side
  • It contained something important but Kimon does not know what
  • Dave had serious financial problems
  • Dave played the lotto frequently
  • Texts between Kimon and Dave shown
    • mentions of how bad Dave's condition was
    • mentions of financial problems

5:13 PM EST (Click to expand)

• Lynn Wright Deposition (filmed)
  • married in the 90s, divorced 2011, seperated 2010
  • familiar with W&K, thinks it was formed in 2008
  • The "W" stands for Wright as in Lynn Wright, "K" was Dave Kleiman and "Info Defense" was CSW
  • Dave being a vet was good for government RFPs
  • Lynn's background is being a nurse, working for CSW, got an MBA, studied law and education
  • W&K did not have value
  • Did not have concerns about W&K because she did not think it had much value
  • CSW had "big servers" on farm
  • CSW and Dave were good friends with lots of respect for eachother
  • CSW and Dave did not talk about Bitcoin, did not call eachother "partners"
  • CSW was informal about business relationships
  • thinks CSW and Dave did not have an informal business
  • Lynn has been in litigation before with regard to DeMorgan
  • First heard "Satoshi Nakamoto" in 2012, was never mentioned by CSW
  • Lynn was a nurse while with CSW, he worked at Lasseters
  • Lynn is now financially dependent on CSW
  • CSW talked about "digital currency" since 2004 and mentioned bitcoin during their 2011 divorce
  • Dave was always writing papers
  • CSW never told her he was "mining"
  • unaware CSW filed suit against W&K in 2015
  • Lynn stil has ownership in W&K
• Donald Lynam deposition (filmed)
  • Uncle of CSW
  • Miltary background, Retired Wing Commander
  • Information Technology background
  • Worked on weapons systems
  • CSW liked computers, radio, and internt in the 90s
  • Japanese influence from CSW"s grandfather (Lynam's father)
  • CSW's grandfather shared information with CSW about crypto and math
  • CSW met and spoke to Bletchley Park professor about code cracking
  • CSW was able to "keep up" and became top in math and crypto
  • CSW developed lasseter's token system in "maybe 2007"
  • CSW never mentioned Dave
  • Read advance draft of bitcoin whitepaper in 2008, CSW sent to him for review
  • Lynam thought it was about a digital monetary system, it lacked a title
  • Knew he would publish under fake name because he wanted privacy
  • Lynam wants to help CSW but would not have testified if he couldn't tell the truth
  • Lynam thought the whitepaper draft was bad and needed editing
  • CSW sent the whitepaper draft digitally
• Dr. McIntyre deposition
  • Army hospital background, infectious disease expert in Miami
  • History of treating parapalegics and associated infections
  • Reviewed 10,000 pages of Dave Kleiman's records
  • Dave's last hospitalization lasted 2 years, 5 months, 2 days then left on a pass on March 21, 2013
  • Dave was in serious condition and would require constant care
    • paralysis waist down, ulcers, bed sores, and related infections, brittle bones

1:23 PM EST (CLICK TO EXPAND)

• Plaintiffs discussing inclusion of additional evidence with Judge Bloom

  • Vel asking to include slack messages from Metanet ICU Criag has sent since the trial started
  • Judgge Bloom decides not to allow the addition slack messages

• Defense exmamination of Mr. Cass

  • Rivero questions Cass about how Bitcoin works
    • Cass explains a bit about how Bitcoin works to the court
  • 2018 was the first coinbase reward sent to a multisig wallet
  • Has worked with CSW in the past
  • There was no evidence Dave could code
  • It's possible that someone uneducated on coding could contribute to the Bitcoin code, but very unlikely due to the sophisticated nature of Bitcoin code
  • Dave's freinds have commented on Dave's coding ability in the past saying that he struggled

• Defense examination of Michael Fernandez

  • Forensic auditor at Alex Partners
  • Saw all of Dave's hard drives
    • Couldn't access data stored in a 'True Crypt' folder
  • "There were 3 copies of something labeled 'do not delete'" within the drives
  • An OS installation was done after Dave's death

• Cross Examination of Michael Fernandaez by Plaintiffs

  • Fernandez admits he's not a Bitcoin expert
  • Is of the opinoin that we'll never know what was on Dave's hard drives
  • Found 1 public key on Dave's hard drives
    • nothing else Bitcoin related

5:27 PM EST (CLICK TO EXPAND)

• Dr. Edman on the stand
  • Thinks CSW was involved in forgeries because of the location of the IP address in Eastern Australia
  • Computer named "PCCSW01"
  • Computer names can be chagned
  • it is possible that someone else could access CSW's email
  • It is possible to change metadata in a way thats difficult to detect
  • Dr. Edman was able to easily see changes in metadata
  • Dr. Edman did not look into CSW's skillset with computer forensics
  • Dr. Edman didn't know CSW's IP address
  • didn't know that Wooloowin is in Brinsbane
  • didn't know where Jaimie wilson lived
  • Location of IP is consistent with where CSW lived
  • Unaware that 19 million people live in eastern australia
  • You can spoof location in metadata
  • Did not know that CSW claimed to have been hacked
  • ~ 40 docs were forged out of hundreds of thousands
  • only checked defense docs
  • Looked at "40ish" docs and they were all forged
  • Shown document, asked if it was authentic: "yes"
    • metadata is consistent
    • created september 2010, printed 2002
    • Some data can update while other data doesnt
  • did not have access to Dave's devices
  • Real life facts can contradict computer evidence
  • CSW's university thesis shown
    • metadata looks forged
    • Dr. Edman says that his personal university thesis is on file physically
    • did not check if CSW's physical copies were on file
    • digital evidencec is not everything
• Plaintiffs resposne with Dr. Edman on stand
  • Dr. Edman is aware that CSW's servers were alleged to be rebuilt in 2014
  • CSW has sworn to the authenticity of docs in question
• Defense now presenting their case
  • Mr. Madura: Bitcoin Expert Witness
    • Not here to ID satoshi
    • Background in computer science, Blockchain for government agencies, IMB, and cybersecurity
    • Familiar with Bitcoin since 2012
    • Main components of Bitcoin are white paper, software, the currency, and mining
    • Satoshi started work in 2007
    • Recalls the original "BC" bitcoin logo
    • Satoshi communicated in Bitcoin Talk forumns
    • Talking about Thanksgiving 2009
      • Bitcoin was fully opperational at this date
      • ~1.4 M coins mined by this time
        • code is instruction for computers
        • C++ code is very complex
        • Bitcoin is coded in C++ and is elegant
        • Likely coded by a single person
        • Madura is familiar with computer forensics
        • Forensics is not the same as coding
        • No evidence of Dave Kleiman's coding skills
        • Dave had certifications in computer forensics

1:11 PM EST (CLICK TO EXPAND)

• Plaintiff examining Matthew Edman
  • Edman accuses several emails from Dave to CSW to be forged
    • cites PGP and metadata as evidence the docs have been retroactively edited
  • CSW posts in Metanet ICU slack saying witnesses can be sued for being untruthful
    • Judge Bloom angry at CSW, insinuating that he could have been threatening the witness
    • "I'm not going to tolerate that going forward"
  • Plaintiffs present several more documents which Edman states are forged

• Defense cross examination of Matthew Edman
  • Rivero: "You are not an expert document analyst?"
    • Edman: "Not specifically"
  • Edman confirms he worked the Silk Road case, in which Ross Ulbricht was the key person

Afternoon Session Cancelled

A juror fell ill with a fever so the court was dismissed for the remainder of the day. This prempts a scheduled 4 day weekend due to the Veteran's day holiday on the 11th. Court will resume with CSW still on the stand on Monday the 15th.

1:25 PM CST (CLICK TO EXPAND)

• Plaintiff asking Judge Bloom to admit new evidence
  • Freedman asks Judge Bloom about presenting new evidence from the Metanet ICU slack channel
  • Judge Bloom doesn't allow a screenshot from Metanet ICU of Craig comparing Ira to Milton from Office Space
  • Judge Bloom to permit messages from Metanet ICU about Satoshi's worth
• Plaintiff examining CSW
  • Hired PR, did media events for the Satoshi reveal
  • Worked on IP with Dave
  • Says Dave didn't develop Bitcoin
    • "He didn't even know C"
  • Another ATO doc is shown that Craig claims to be fabricated
    • "It was proven internally and they (ATO) dropped everything against me"
    • ATO: "contentions have been proven to be fabricated"
  • Dave only ever provided "editing and documentation" for Bitcoin, wasn't involved in the software creation process, per CSW
    • Dave helped Craig "parse down" the Bitcoin whitepaper
  • CSW helped Louis Kleiman look for Dave's Bitcoin following his death, as well as recover Dave's shares in Coin-Exch.
  • "W&K still has Dave's work, not my work"
  • Email from CSW to Ira: "Look for keys and wallet files"
  • CSW offered Ira Bitcoin worth ~$4B today, $12M at the time of the offer

5:26 PM EST (Click to expand)

• CSW on the stand, questioned by plaintiffs
  • You do not need a private key to send Bitcoin
  • CSW did not share keys with Dave
  • CSW recalls Bitmessage discussed by Warren
  • CSW does not have Dave's PGP keys
  • CSW does not have emails with Dave about Bitcoin, "nobody does"
    • Absence of Bitcoin emails is not by design
    • Dave would have records to corroborate this if they were not deleted (implicatoin being "by Ira")
  • Earnst & Young know about CSW's role as Satoshi Nakamoto becayse he was applying for a banking charter.
    • CSW was not "hiding" Satoshi
    • He did not want to be in the media but he was not keeping it a secret, draws this distinction
  • The trust did not own Bitcoins, it owned companies that owned Bitcoin
  • ATO was proven to have fraduelenly sent documents
    • ATO was breached or had an internal breach
  • First 15 blocks were mined by CSW
  • Discussion of "Wright Family Trust"
  • Information Defense mined into "overseas entties"
  • Bitmessages shown, CSW questions their origin
  • Tulip Trust discussion
    • Tulip trust 1 vs Tulip trust 2
    • Email from Dave to CSW: "I think you are mad and this is risky, but I believe in what we are trying to do.", Tulip Trust documents attatched
      • "I Dave Kleiman have received 1.1 Million Bitcoin to be retruned to CSW on 01/01/2020"
    • CSW says that Dave helped in 2011. He was acting as a front to sat that he ran CSW's companies.
    • The ATO wanted to bankrupt CSW so Dave became his front
    • Tulip Trust is a DAC, decentralized autonomous corporation
    • The Tulip Trust is part of a court case from 2011

12:58 PM EST (CLICK TO EXPAND)

• Examination of CSW by Plaintiffs
  • Admits to having mined testnet coins
  • "I fell apart in 2010, Dave picked me up in 2011 and we worked together to prove Bitcoin worked"
  • Email from CSW: "Bitcoin I control was mined in the US"
    • Email from CSW: "We kept what we did a secret"
  • Emailed Ira "multiple times" in 2014
  • Confirms that W&K was set up to mine Bitcoin
    • "Yes, but what it was set up to do and what it did are different."
  • Uyen Nguyen wasn't a trustee, but was a key slice holder
  • When asked if there is a trust CSW replied "It's an algorithm"
  • States that certain docs from the ATO aren't real
    • An ATO agent was fired over these docs
  • "Tulip Trust 1 isn't the Tulip Trust"
  • Bitcoin client was released in November 2008 to a select few individuals
  • Tax office knew Dave and CSW were working on Bitcoin since 2008
  • Claims Dave can't code, states that he didn't help with any of the Bitcoin code
  • Email from CSW to Louis Kleiman (Dave's father): "You son Dave and I are 2 of 3 key people behind Bitcoin"
  • "I failed my first marriage and wanted Dave Kleiman remembered. Dave talked me into Bitcoin. It basically ended my marriage"
    • "I put Dave before my wife, he was important, and I told his father that"
  • States that while he needed other people's help with Satoshi's work, Satoshi was not a team
  • Dave was in control of Satoshi's vistomail account in 2011
  • Email from CSW to Ira: "Dave and I completed lots together. He was involved with the PDF and had the vistomail account"
    • "I exaggerated because I wanted Dave to be remembered. I loved Dave. I back tracked only when under oath."
  • Dave and CSW had separate Bitcoin
  • Dave and CSW didn't mine Bitcoin together
  • Email from CSW to Dave: "We need to discuss the trust and work out what we are doing..."
    • "It's a royal 'we.' I sought Dave's advice about how to fund the computer, etc..."

6:01 PM EST (Click to expand)

• CSW on the stand
  • established W&K in 2011
  • CSW R&D sued W&K in 2013
  • CSW: "I have never been a director, member, shareholder, or anything of W&K or any Florida business."
  • Craig Wright the company is not the same as Craig Wright the person
  • Craig Wright the person has represented Craig Wright the company
  • CSW contacted Dave's fiance after his passing
  • Claimed relief for ~$28 M vs W&K
  • W&K had IP over software used for Coin-Exchange
  • Lynn appointed CSW to represent W&K
    • Plaintiffs reiterate CSW's "I have never..." statement
  • CSW says he was "agent for director", Lynn gave him authority
  • W&K owed Craig Wright (company) money which was forgiven
  • CSW did not send anything to Ira because Dave told him that he had a brother who had died, Dave's fiance said the same after Dave's death
  • CSW says that he controlled W&K "through Lynn and corporations"
  • There was not any Bitcoin in W&K
  • Documents shown
    • Statutory declaration involving "1933" bitcoin address
    • Contract in 2011 involving 300,000 bitcoin
    • Feb 2013 agreement to use 300,000 bitcoin to start an exchange based on Bitcoin
  • CSW bought Dave's shares in April 2013
  • CSW shown emails where he refers to Dave "My partner Dave and I...", says it is in reference to a proir business
  • CSW sued Mark Ferrier, police report filed
    • CSW email to NSW police: "I spooke with Mark about the bitcoin exchange - an idea developed with my business partner Dave Kleiman for a period over a decade."
  • CSW's company DeMorgan "goes back to the 1990s" Dave "joined later."
  • He was CSWs partner on other businesses
  • Interaction with the ATO was over how to tax Bitcoin. ATO wanted to tax by GST. CSW's company fought and had this overturned.
  • CSW does not recall an ATO interview in August 2014
    • Transcription shown is not valid, "I did not go to the ATO"
  • More references to "my partner Dave" shown from Book and emails with Ira
  • Discussion of the discrepencies in the timeline of the Bitcoin logo in relation to Ira's "thanksgiving story"
  • CSW does not recall Dave Kleiman mining
  • Emails between CSW and Mark Ferrier about "private keys" which CSW says he "moved to Dave Kleiman" when he had "tax issues"
  • Discussing mining Bitcoin on a testnet
    • CSW says they tested C01N supercomputer on testnet to mine big bitcoin blocks as part of Bitcoin R&D.
    • CSW was "led to beleive" that Dave was mining, he told him to

12:58 PM EST (CLICK TO EXPAND)

• Reading of Ramona Watts testimony
  • Married CSW in 2013
  • Is a Tulip Trust trustee
  • Dave Kleiman was not a Tulip Trust trustee
  • Recalls fighting with CSW about the trust, "seemed overly complex"
  • CSW and Dave were partners, but not in work
    • CSW would send Dave papers for editing
  • CSW wrote the Bitcoin whitepaper himself with no help
  • Doesn't know if Dave helped edit this specific whitepaper
  • Offered Ira Dave's shares in Coin-Exch following Dave's death
    • Ira wanted cash instead of shares
  • Email from CSW saying "Add (Partrick) Paige to "knows" because it's clear (Dave) dicsussed SN with Paige."
  • Admits CSW has told her Dave helped with Satoshi's work
  • "Dave wasn't a math guy"

4:38 PM EDT (CLICK TO EXPAND)

• Defense continues cross examination of Ira
  • Ira admits to having never had a conversation with Dave about Bitcoin
  • Admits that the Bitcoins in question in this trial were mined prior to 2011
    • alleged W&K partnership was for 2011 onward
  • Email from Craig to Patrick Paige: "We kept it secret. W&K mined bitcoin"
  • Email from CSW to Ira in 2014: "Delete after reading. Leave others to be Satoshi, leave Dave not to be"
    • Ira replied: "Agreed"
• Deborah Kobza desposition
  • CSW's relationsihp with GICSR was as a consultant
  • Unaware of Dave, W&K, Bitcoin involvement, or any of the trusts

1:03 PM EDT (CLICK TO EXPAND)

• Defense continues cross examination of Ira
  • Ira admits to possession of several of Dave's hard drives and having overwritten his own data onto the hard drives
  • Admits that emails between Craig and Dave state that Craig asked Dave for help with editing the whitepaper, not the code for Bitcoin
  • Email from Craig to Dave in 2011 about a "partnership" was in regards to proposals to the DHS, rather than about Bitcoin or W&K Defense
  • Email from Dave to Criag: "You are the genius..."
  • Ira clarifies that CSW indeed does send Dave all his papers for proof reading
  • Email from Dave to Craig in 2008: "Sometimes you amaze me..."
  • Email from Dave to Craig 4/22/2008: "I haven't being doing well... can't fulfill requirements."

6:10 PM EDT (Click to expand)

• Defense continues cross examination of Ira
  • Ira sought to discover what type of business W&K did?
  • Multiple proposalsfrom W&K to the Department of Homeland Security (DHS) presented
    • Ira confirms that these were not bitcoin related proposals
  • Email regarding shares of W&K from Ira to the state of Florida shown, signed "Steve"
  • Ira reinstated W&K in April 2018
  • Ira confirms that he is familiar with computers
  • Ira doesn't recall when he considered litigation against CSW
  • Ira rejects suggestion that he was emailing with CSW in order to fish for info
  • Doesn't recall researching litigation around this time
  • Ira created email account "WrightKleiman@gmail.com" and used it to send info to ATO and IRS
  • Many emails shown between Dave and CSW, no mentions of Bitcoin
    • emails are regarding projects they are working on together
    • Dave mentions being unable to participate due to his health
    • Lots of emails shown
    • July 2008 emails re "whitepaper"
      • Dave to CSW: "Tracked changes on data wipe paper"
      • CSW to Dave: "need it done by July 21"
      • Dave to CSW: "let me know what I can do and it will be done."
  • Ira lived near Dave during his final years, never visited
  • Ira confirms he was to get 10 million shares in C0IN Exchange company from CSW
    • Emails between CSW and Dave
      • CSW to Dave: CSW held shares in trust for Dave, pre IPO, Dave owns 10% of C0IN Exchange
      • CSW to Ira: C0IN Exchange shares are for Ira and Louis (Dave's father)
      • Ira to CSW: Seeks information on how he could sell shares in C0IN Exchange and minimize tax obligations
  • Ira knew that Dave was secure with his hard drives
  • Ira does not know if there was encrypted data on them
  • Ira wrote different data on Dave's drives
  • Ira identifies there was one TrueCrypt file on "military grade" thumbdrive
  • Unsure if Dave always kept this military grade thumbdrive on him
  • More emails
    • Ira to CSW: "Maybe I made a mistake and formatted his drives and threw away Dave's papers"
  • Ira teold people to put Dave's drives in a saftey deposit box, but it never happened, he left them in a backpack
  • Defense goes through the drives one-by-one
    • Drives were overwritten
    • Ira says he was using them for personal data
  • CSW and Dave wrote a paper (previously mentioned) on overwriting hard drives
  • Ira continued to use Dave's drives during this lawsuit
  • Ira says that Bitcoin wallets on those drives could have been wiped
  • Ira admits to sueing Patrick Page but did not retrieve Dave's drives from Page
  • Ira does not know whats on those drives
  • Ira doesn't know why he did not have an expert check those drives for Bitcoin files despite Dave allegedly telling him he was working on a new type of money that would be "bigger than facebook" in 2009

1:10 PM EDT (CLICK TO EXPAND)

• Defendants time with Ira on the stand
  • Email from CSW to Dave shown in court "I need your help editing a paper..."
    • Ira confirms the email says "editing", not writing
  • Dave showed Ira the Bitcoin B logo in 2009
    • Ira understood that it was a logo for a new form of digital money, but decided not to inquire further
  • Last Ira saw Dave was 2009
  • Dave's highest level of formal education was a high school degree
  • Ira alleges that Dave was mining Bitcoin in Florida but admits he has no evidence
  • Ira admits to have filed multiple suits against Dave's friends in the years following his death
  • Dave's 2010 tax return shows no computer expenses
  • Ira doesn't have access to any of W&K's tax returns
  • Ira admits to having over 30 email addresses
    • multiple of these email addresses contain the name "Dave"
    • according to Ira, this is in order to send himself a birthday email from Dave every year

5:24 PM ETD (Click to expand)

• Plaintiff's time with Ira Kleiman on stand
  • Has never testified in court
  • Ira being walked through procedure by the plaintiffs' lawyers as if he was a child, very slowly and simply
  • could not attend yesterday because of a health issue
  • Is Dave Kleiman's younger brother
  • Receouting Dave's history: high school, military, helicopter tech in Germany, police officer, motorcyvle accident in 90 left him paralyzed, CFLLC with Page
  • Ira is a represenative for Dave's estate
  • Ira named as executor of Dave's will in 2003
  • Ira has financial interest in outcome of trial
  • Had not heard of CSW, Bitcoin, mining, etc prior to 2013 when CSW contacted him
  • *Defense objects to plaintiffs leading questions
  • Questioning about his knoweldge of the Australian Tax Office (ATO), which is very little
  • Says Dave was a partner at C0IN Exchange
    • email shown between Ira and ATO agent asking Ira if he was aware he recieved shares in C0IN Exchange
    • Gov document showing shares given to Ira, Ira claims it is fraudluent
    • Claims to have recived nothing in exchange for interest in W&K
  • Went to Dave's place of residence two weeks after his death after clean up crews arrived
  • Took computers, books, laptops, harddrives, thumbdrives and brought them home
    • did not do anything with these materials for months
    • does not think that the drives had bitcoin
    • CSW told him that there were coins on the materials
    • Ira discarded external drive because it did not seem to turn on
    • Ira formatted 2 drives and formatted Dave's laptop so that his wife could use the computer
    • Used Dave's thumbdrives for his own purposes
    • Patrick Page retrieved the drives later
    • Forensics expersts hired by laywers also looked at the drives
    • Ira discarded Dave's work papers and "many irrelevant things"
    • CSW told him there could be something valuable on drives but he did not think that was the case
    • CSW offered Uyen Nguyen to help with drives
    • Ira asked Uyen for help via email to no response
    • Ira asked CSW for help, offering 50% of what he found
    • Ira to CSW "Why didn't Dave cash in?", CSW mentions trusts
    • Ira did not sue right away, tried to settle with CSW
• Defense's time with Ira on stand
  • Ira speaks of 2013-2018 a lot, why is the only signifincant date prior to that Thanksgiving 2009?
  • This was the last time Ira saw Dave, ~ 4 years before his death
  • Claims his brother drew the "Bitcoin B" at thanksgiving dinner in 2009
  • Says Dave as 50/50 parter in Satoshi
  • Does not know CSW's business arrangement with Dave
  • CSW was the source of information for Ira
  • Saw the "50/50" breakdown in W&K suggested in email
  • Admits to disposing and reformattind Dave's drives
  • Found no partnership agreements in Dave's papers
  • No emails or communications between CSW and Dave regarding parternship
  • Dave never said that CSW robbed him
  • no evidence of theft while Dave was alive
  • CSW did not take Dave's keys, they had shared access, but Ira has no proof for this claim
  • No evidence outside of thanksgiving dinner 2009, Ira says this is because Bitcoin was a secret
  • Ira never spoke with Dave about Bitcoin after thanksgiving 2009
  • Dave did not say that it was a secret at thanskgiving 2009
  • Ira demonstrates the logo drawing to the jury, draws a capital B with a vertical line through it
  • Dave did not say to keep it a secret
  • Dave did not give Ira the paper with the logo
  • Plaintiffs informing Ira that by Thanksgiving 2009 ~10% of Bitcoin had already been mined
  • Dave's will does not mention Bitcoin
  • Dave knew that we was not in good health but he did not update his will
  • Ira says that someone else said Dave had coins, possibly in emails that have not been produced in discovery
  • Ira knew of Dave's CFLLC company
  • Dave told Ira about the company
  • Ira initially had a hard time beleiving that Dave was Satoshi
  • He never saw Dave do "software things" or "code"
• End of Day

1:04 PM ETD (Click to expand)

• Jamie Wilson video deposition from 11/08/2019

  • Is an account, specified he wasn't a tax accountant
  • Met CSW in 2012 while he was working on a crypto escrow system
  • Worked briefly with CSW as director / CFO of one of CSW's companies before resigning
    • didn't like how CSW was claiming R&D tax credits with the ATO
  • Was aware of Dave as CSW's brest friend, although never met Dave personally
  • Said after Dave's death CSW's confidence went through the roof
    • went from wearing hoodies and driving a Subura to wearing suits and flashy everything
    • it was obvious CSW had the Bitcoin money
  • CSW told Jamie he had "over 1 million Bitcoin" worth over $100 million at the time
  • Claims CSW told him he and Dave created Bitcoin

• Jimmy Nguyen video deposition from 2020

  • nChain's purpose is R&D in IP relating to Bitcoin tech
  • nChain received IP from DeMorgan, but Jimmy doesn't know specifically which of nChain's IP came from DeMorgan
  • Dave helped CSW with the whitepaper

5:12 PM ETD (click to expand)

• The jurors have been selected

  • 7 women, 3 men
  • Average age ~ 50
  • Novice understanding of Bitcoin, if any

• Opening statements

  • Plaintiff
    • Upon hearing of Dave Kleiman’s death CSW has a choice: does he keep Dave’s involvement a secret, does he tell Dave’s family, or does he take Dave’s portion of the Satoshi coins?
    • Lawyer points at CSW: “That man robbed his best friend!”
    • Allege that CSW has changed his story on Dave’s involvement as a strategy to steal from Dave. Described as follows,
      • Cite quotes from CSW available in discovery referring to Dave and their joint involvement in Bitcoin’s early development
      • In 2013 CSW began to transfer assets from W&K to himself.
      • Ira became distrustful of CSW after receiving a letter from the Australian Tax Office (ATO) regarding the asset transfers from W&K
      • Prepare the jury for a “incredible number of excuses” from CSW
      • Suggest that CSW’s autism spectrum diagnosis is illegitimate

  • Defense

    • Prepare the jury for a “genius” but “difficult” and “strange” defendant who “understands things differently”, partially due to his autism
    • State that there is nothing to “demonstrate Dave’s contribution to Bitcoin”, including never mentioning anything about Bitcoin to his own best friends on his death bed
    • Suggest that CSW robbing his friend due to greed is out of character, stating how he could have created Bitcoin with a “premine” or other mechanisms to enrich himself but did not
    • W&K was created in 2011 between Dave (the K) and Lynn Wright (the W), CSW’s ex-wife
    • CSW became emotional during discussions of Dave who the Defense acknowledges as a good friend of CSW’s

  • Andreas Antonopoulos on the stand to explain Bitcoin to the jury on behalf of the plaintiff

• Summary
  • Plaintiff is focusing on "CSW the fraud" narritive
    • Will focus on ATO case
    • W&K was Satoshi
  • Defense will argue that W&K was not "Satoshi" but instead a forensics company that Dave and the Wrights (CSW and Lynn) were involved with BUT its role in Bitcoin was the creation of an exchange that did not materialize
    • CSW is Satoshi
    • Will seek to show the human side of CSW who is often difficult to understand, in part due to his autism

2:21 PM ETD (click to expand)

• Today’s primary focus is jury selection
• Potential jurors were read case summary
  • Plaintiffs allege partnership between Wright and Kleiman in the development of Bitcoin and Bitcoin IP which CSW ultimately stole
  • Defendants deny any partnership and accusations of theft of assets
• Many of the potential jurors had connections to Bitcoin and cryptocurrency as investors or even miners
• Questions for potential jurors ranged from existing opinions on Bitcoin and cryptocurrency to their familiarity interacting with people on the Autism spectrum to questions about understanding of how people represent themselves on social media.