Craig Wright is often called Faketoshi, since he claims to be Satoshi Nakamoto yet has never proven it. Also, Wright is losing what is perhaps the wildest court case in crypto history, where the Estate of Dave Kleiman is suing Wright for one million Bitcoins (BTC), and Wright continues to commit perjury by submitting false testimony and evidence. Also, Wright launched a fork of Bitcoin (BTC) called Bitcoin SV (BSV), and he claims that it is the ‘real Bitcoin’ despite the fact that practically no one uses it and it has less than 2% of the value of Bitcoin (BTC). 

All of that stuff is crazy enough, but now the controversy surrounding Wright has reached a new level of insanity. Supposedly Wright has released self-incriminating evidence which indicates that he hacked Mt. Gox for 80,000 Bitcoins (BTC), although this situation is so absurd that it could be a hoax. 

Specifically, Wright’s lawyers have sent letters on his behalf to the Bitcoin Core developers and Blockstream, saying that Wright’s computer was hacked on February 5 2020, causing Wright to lose access to an address with 79,957 Bitcoins (BTC) and another address with 31,000 Bitcoins (BTC). 

The letter goes on to say that Wright believes that the developers of Bitcoin Core are liable in this situation, claiming that Bitcoin Core developers have a duty to not allow illegal transactions to be entered into the blockchain. 

The letter then demands that the Bitcoin Core developers block any Bitcoin (BTC) from leaving the two hacked addresses, since Wright is working on recovering the wallets.

Finally, as if to pour salt in the wound, the letter ends by saying that Wright owns the right to the name ‘Bitcoin’ as well as Bitcoin’s (BTC) database. 

This letter is pure insanity on multiple levels. First off, neither the Bitcoin Core developers or blockstream have any control of the Bitcoin (BTC) network since it is completely decentralized, and therefore this letter is pointless even if this incident really did happen. 

Likewise, it is meaningless to ‘own’ Bitcoin’s (BTC) name or the rights to its database, since no one can own or control the Bitcoin (BTC) network since it is decentralized.

It gets crazier. The address which starts with ‘1Feex’ is the same address which hacked 80,000 Bitcoins (BTC) from Mt. Gox on March 3 2011, as seen in the below tweet which has an archive of a conversation between Mark Karpeles and Jed McCaleb.

Indeed, Mark Karpeles himself has chimed in and confirmed that the address ‘1Feex’ does contain 80,000 Bitcoins (BTC) stolen from Mt. Gox, so at least that part of this crazy is true. 

Zooming out, this theory sounds too absurd to be true. First off, no matter how controversial Wright is, he is a crypto expert and knows that Bitcoin (BTC) addresses cannot be centrally controlled, and he would not send a letter like this to the Bitcoin Core or Blockstream developers since it is a nonsensical waste of time. 

Further, Wright is in a court case where he has been persistently trying to cover up the amount of Bitcoin (BTC) that he holds, and it would be illogical to send a letter saying he had the keys to USD 1 billion of Bitcoin (BTC) as of early February. This is especially true since Wright has consistently claimed in court that he cannot access his Bitcoins (BTC). 

Beyond that, if Wright really stole the Bitcoins (BTC) from Mt. Gox, he wouldn’t send a letter like this. 

In any case, Cointelegraph says a statement from Wright ‘was shared with them’, and in this statement Wright claims he did not steal the Bitcoin (BTC), rather he purchased the Bitcoin (BTC) in February 2011 and it was legally transferred out of Mt. Gox in early March. 

This is complete nonsense as well, since Wright supposedly mined his Bitcoin (BTC) fortune, and therefore it is illogical that Wright would buy a tremendous amount of Bitcoin (BTC) with fiat on Mt. Gox. 

Also, the 2011 Mt. Gox hack is clearly well documented and corroborated by former Mt. Gox CEO Mark Karpeles, so Wright is walking into a huge mess if he claims that he really does own the ‘1Feex’ address. 

Ultimately, if this letter from Wright is real, it would be equivalent to a self-inflicted death blow that would completely ruin Wright’s life. There are only two possibilities, either this is an elaborate hoax orchestrated by people who do not like Wright, or Wright has totally lost his mind. Until Wright officially speaks, the crypto space should assume the letter is not real.