Craig Wright — The Tankening Is Near

MyLegacyKit (Link to original medium.com post)

Source: https://fortune.com/2015/12/09/australia-bitcoin-raid/

Written by Arthur van Pelt

This short article will put a brief spotlight on the handfuls of companies that

Satoshi Nakamoto cosplayer Craig Wright bankrupted since 2013 when he

started his Bitcoin fraud show, and why the Calvin Ayre subsidized, and

controlled — but all set up to support Craig’s wild Bitcoin dreams — ,

companies Taal Blockchain, nChain, CoinGeek Media and of course the

Bitcoin Association for BSV are extremely likely next in line. Also Craig’s

brainchild, the Bitcoin affinity fraud project BSV (sometimes called “Bankrupt

Soon Vehicle” already), will very likely not escape the hand of doom that

follows Craig closely since he bought his first few Bitcoin on Mt Gox in April

2013.

Source: https://fortune.com/2015/12/09/australia-bitcoin-raid/

“On Tuesday, two different technology publications, Wired and Gizmodo,

ran big stories pointing to an Australian businessman, Craig Steven Wright,

as the possible creator of the digital currency bitcoin. And on Tuesday night

(Wednesday afternoon in Australia), Australian federal police raided Wright’s

house and office. It was a wild ending to a wild day in bitcoin news.

The Australian authorities said the raids in the Sydney suburbs of Gordon

and Ryde were part of a tax investigation and not related to the day’s bitcoin

reports. The Australian Taxation Office ordered the police raid, and,

according to the New York Times, it has declined to comment. The

Australian Federal Police did release a statement in which it said, “The AFP

can confirm it has conducted search warrants to assist the Australian

Taxation Office at a residence in Gordon and a business premises in Ryde,

Sydney. This matter is unrelated to recent media reporting regarding the

digital currency bitcoin.”” — Fortune (Daniel Roberts)

Many of my readers will remember this moment in December 2015 all too

well I’m sure; here is where Craig Wright’s claim to Bitcoin creator fame

started in the Wired and Gizmodo magazines, a claim that failed from the

get-go, and kept on failing ever since. Within hours of the publications

aforementioned, almost as if it was coordinated (but it wasn’t, as we know

now), Craig’s home and offices were raided by the Australian police, on

behalf of the Australian Taxation Office (ATO), to collect all bookkeeping files

and other records of the companies that he was running at the time:

Source: the now-deleted DeMorgan website

What we are looking at above is the final installment of Craig’s Bitcoin-

related Potemkin Village in Australia, just before he fled to London to

become nChain’s Chief Scientist. Despite the fancy looking logos, all these

companies do not exist anymore. It’s even fair to say, some of them never

really ‘existed’ in the first place, except for their Australian Securities &

Investments Commission (ASIC) registration and some made up paper-only

figures to try defraud the ATO for millions in fake, baseless tax returns.

For example, when the ATO was inquiring Coin-Exch (middle row, logo on the

right) and requested one of Craig’s tax refunds of AU$3,787,429.00 back

(and fined Craig AU$1,893,714.50 on top of it), they explained to his tax

lawyer Andrew Sommer:

Source: https://www.courtlistener.com/docket/6309656/1/15/kleiman-v-wright/ (page 6)

Let’s do a quick rundown of these, and a several other — not mentioned in

the screenshot — companies that went bankrupt or were otherwise forced to

close shop during the Australian tax fraud era where Craig Wright started

using Bitcoin as a scam tool in 2013, and ignited a Satoshi Nakamoto cosplay

in the process in later years.

All companies are located in Australia, except where mentioned otherwise.

Note that this list is likely still incomplete, and took quite the research effort

to create, as Craig Wright went to great lengths in his attempts to obfuscate

his (non-existing) Bitcoin dealings, and to deceive the ATO in the process.

For a more detailed run down of Craig his fraudulent Bitcoin and tax dealings

up till 2015, I happily refer to the, as yet unfinished, “Faketoshi, The Early

Years” series of articles.

Information Defense (raised 2009, dismantled 2017)

Integyrs (raised 2009, dismantled 2015)

- Not to be confused with Integyrz

Greyfog (raised 2009, dismantled 2014)

Cloudcroft (raised 2011, raided & put under ATO’s External

Administration 2015, dismantled 2020)

Panopticrypt (raised 2011, raided & put under ATO’s External

Administration 2015, dismantled 2020)

Strasan (raised 2011, renamed to C01n in 2014, raided & put under

ATO’s External Administration 2015, dismantled 2020)

Coin-Exch (raised 2013, raided & put under ATO’s External

Administration 2015, dismantled 2020)

Hotwire Preemptive Intelligence (raised 2013, bankrupt 2014,

dismantled 2017)

Integyrz (raised 2013, raided & put under ATO’s External Administration

2015, dismantled 2020)

Interconnected Research (raised 2013, raided & put under ATO’s

External Administration 2015, dismantled 2020)

Pholus (raised 2013, raided & put under ATO’s External Administration

2015, dismantled 2020)

Denariuz (raised 2013, raided & put under ATO’s External Administration

2015, dismantled 2020)

Zuhl (raised 2013, raided & put under ATO’s External Administration

2015, dismantled 2020)

Hotwire PE Employee Share Plan (raised 2013, dismantled 2018)

Chaos And Nonlinear Forecastability In Economics And Finance (raised

2014, dismantled 2018)

Daso (raised 2014, dismantled 2017)

DeMorgan Holdings (raised 2014, dismantled 2017)

DeMorgan Ltd (raised 2014, dismantled 2017)

Misfits Games (raised 2014, dismantled 2018)

Ezas (raised 2014, dismantled 2019)

Denariuz Ltd (UK) (raised as empty shelf company in 2012 by CFS,

obtained as such by Craig under the name “Permanent Success” who

immediately renamed to Denariuz Ltd in 2014, dismantled 2017)

C01n Ltd (UK) (raised as empty shelf company in 2012 by CFS,

obtained as such by Craig under the name “Moving Forward In

Business” who immediately renamed to C01n Ltd in 2014, dismantled

2017)

On purpose, the two most ‘famous’ Seychelles companies (Tulip Trading Ltd

& Wright International Investments Ltd) that Craig Wright still owns are not in

this list. As far as we know, these two companies still exist, have not been

dissolved from the Seychelles company registries, and — by means of

backdated forgeries, fraudulent bookkeeping and non-existing encrypted

files between its assets(*)— form the current installment of the infamous

Tulip Trust.

Note that to this very day, the Tulip Trust fraud is still used heavily by Craig

Wright and his UK lawyer firm Ontier to further scam and harass inside and

outside the Bitcoin industry with several elements of the long-debunked

Craig is Satoshi lie. Allow me to mention false copyright claims, several

senseless libel cases, the Pineapple Hack that never happened, multi-million

Nigerian prince advance fee scammery… as examples where the Tulip Trust

fraud is making an appearance. Time to put an end to it, if you ask me, but

that’s another story for another day.

(*) as determined by the ATO in 2016 during their very thorough tax fraud

inquiry, and as determined by Court Florida in 2019 during the Kleiman v

Wright lawsuit.

Logically, in 2016 the ATO was not convinced that Craig had anything to do with the inception of Bitcoin

Now how is all this related to the BSV project, to Taal Blockchain, nChain,

CoinGeek Media and the Bitcoin Association for BSV?

Simple.

Just as (almost) all of the 22 bankrupt, raided & discontinued Australian and

UK companies have been based upon, and wrapped around, Craig Wright’s

Bitcoin fraud that he ignited in 2013, so are nChain et al. When Craig’s

Bitcoin Potemkin Village, together with his Satoshi cosplay, collapsed in 2015

in Australia, he just rewrapped the whole — empty, paper only — thing,

created a new set of lies and forgeries, found a gullible, and wealthy, Calvin

Ayre on his path, and he was allowed to continue the whole scam under a set

of new business monikers in the years after 2015!

Since this is just old wine in new bottles, this will, of course, not end well

again for everyone involved. Thoroughly rooted in fraud, deception and false

promises (of which we’ve seen handfuls fail already), the current Craig

Wright entourage of ‘Bitcoin’ related endeavors are set up for one thing only

again: bankruptcy.

And it is about time to not ignore the signals anymore. Take Taal Blockchain,

the longest standing dedicated BSV mining pool, for example. It was a total

shock, but not a surprise (to me at least), to learn that in 2.5 years, Taal

managed to build up no less than $40 million in losses. Not at any time in

their mining history have they been able to:

attract successful managers, directors and Board members that

remained in position longer as 1–2 years

make any substantial revenues on mining or otherwise to cover their

massive cost structure

walk on their own legs, as they recently needed a $7 million loan and a

$40 million bailout to stay afloat

Let’s have a closer look at the figures of Taal.

Mockup of Taal’s 2020 and 2021 (till June) reports

Just make a count of the ‘Net loss’ line and you will get to a number north of

$40 million. This, and for several reasons more, is why it is to be expected

that Taal will go bankrupt in the upcoming years.

Economical: as mining BSV is not to be expected to become profitable

anytime soon for a — dedicated — miner, Taal will, as a result, not be

able to make any profits. Unless Calvin Ayre, the monetary mind behind

some 80% to 90% of all BSV infra, keeps bailing out Taal, they will go

belly up within two years, is my expectation.

Social: as BSV and its few 100 dedicated community members have a

reputation that, if possible, would be measured below zero by industry

experts, as a result no widespread adoption of BSV is ever to be

expected. Recently, Australia already hinted to that trend when refusing

to sponsor BSV related projects with tax money, citing reputational and

legal issues with BSV.

Legal: as there is currently immutable illicit material like child abuse

pictures and copyrighted images and — artwork in the BSV blockchain,

it is to be expected that at some point regulatory forces are going to

clamp down on the easy-to-bring-down centralized BSV blockchain.

Another ticking legal timebomb under the long term existence of the

BSV blockchain is the rightful accusation that BSV shows all signs of

being a security: centrally controlled issuance of a digital token with a

promise of future returns(1) based on enforcement of patents(2) and

the Craig is Satoshi-bonus, combined with his price calls based on his

future actions, like dumping all the BTC from his ‘Tulip Trust’(3).

(1) With the Howey Test one can determine if a self-proclaimed crypto

currency is in fact a security: “investment of money in a common

enterprise with a reasonable expectation of profits to be derived from

the efforts of others”. Meanwhile, the Securities and Exchange

Commission (SEC) has recently announced to start cracking down on

possibly up to 6,000 security offerings in the crypto space. There is no

doubt in my mind that BSV will be on the SEC’s radar sooner or later.

Source: https://www.cnbc.com/2021/09/14/sec-chair-gary-gensler-wants-to-crack-down-on-the-wild-west-of-

crypto.html

(2) Calvin Ayre has no shame in admitting this fact. Only note the typo: he

forgot the SV after Bitcoin. Bitcoin, unlike its affinity fraud derivative BSV, has

no controlling entity, of course.

(3)Twitter user @m__btc nailed it in a tweet dated December 23, 2020 (with

screenshots provided): “BSV is owned by Calvin Ayre (according to the

official BSV website) and his fraudulent buddy is promising profits.

BSV meets all of the Howey requirements but it will likely implode

before drawing SEC’s attention.”

And @m__btc further detailed his stance on March 5, 2021:

Now let’s have a look at another BSV ‘behemoth’: nChain. They appear to be

doing fine; steady turnover growth, no losses over the last two years, nice

little profit each year… A solid business to happily invest in, unlike Taal, one

would think. No?

Source: https://find-and-update.company-information.service.gov.uk/company/09823112/filing-history

No. Maybe not.

Let’s have a look at what the turnover actually is: “provision of commercial

blockchain and IT products and services”. Okay. That’s not patent licensing

revenues, since nChain never sold one of the hundreds of Craig Wright’s

patents since 2015. That’s not the Tuvalu project (announced late December

2020) nor EHR Data (indefinitely postponed in April 2021). So what are these

revenues, coming from the “rest of the world”? Could it be that nChain just

sends a $1 million invoice for “provision of commercial blockchain and IT

products and services” to Antigua each month to be able to pay the salaries

of 76 employees, as Calvin Ayre is literally sponsoring ‘everything’ in the BSV

circle jerk environment, up to literally tens of millions in a hilarious Nigerian

prince style advance fee scam(*) for Craig Wright’s legal struggles? One can

try to make an educated guess here. But fact is, nChain, always quick to

make big announcements like EHR Data and Tuvalu, never announced any

other enterprises and governments coming in in droves.

(*) Nigerian prince advance fee scam, as we learned from one of Craig’s

lawsuits:

Tulip Trust doesn’t exist & there are no Bitcoin either according ATO and Court Florida

What remains are a few words about the single most risky central point of

failure for BSV: Craig Wright, the Satoshi Nakamoto cosplayer. In the past

few years, we’ve seen that the BSV price needle only moves when, always

based on fake news, Craig is presumed to have proven his Satoshi-ness. The

most recent, and most prolific at the same time, example was the Tulip Trust

pump in January 2020.

After the Tulip Trust pump it only went downhill for BSV

In January 2020, during the Kleiman v Wright lawsuit, Craig Wright appeared

to have handed over the so-called Tulip Trust list of his Bitcoin ‘holdings’

from his self-declared mining in the early years of Bitcoin, to be precise from

January 2009 till August 2010. This mining, of course, never happened, and

as a result this Tulip Trust list turned out to be the umpteenth forgery that

Craig had created during the lawsuit. In May 2020, 145 Bitcoin addresses on

this list were signed “Craig Steven Wright is a liar and a fraud”, i n t h e

months after followed by numerous coins moving from handfuls of Bitcoin

addresses on the, obviously fake, Tulip Trust list.

To cut a long story short, Craig Wright will not win any of the lawsuits that

he’s currently involved in as they all are, no exception, loaded with his lies

and forgeries.

Craig will not win the Kleiman fraud case

Craig will not win the COPA copyright case

Craig will not win the Peter McCormack libel case

Craig will not win both the hodlonaut libel cases

Craig will not win the Pineapple Hack case against the Bitcoin devs

Admittedly, this might take a few years more to play out properly. But

knowing that only Craig Wright is able to make the BSV price move, the

coming years we will see an avalanche of bad news hit the BSV community,

and they will not hesitate to put further pressure on the BSV price. Not

compensated by good news (as there will be none; BSV doesn’t scale, is

technically crippled as the recent reorg attacks (leading to over $6 million

double spend damages for Bitmart Exchange, as their lawsuit to chase the

Russian hackers evidenced) showed, and is not being adopted due to its

ugly reputation), BSV is heading for the abyss. And with the demise of BSV,

all companies like Taal and nChain and Bitcoin Association for BSV making

up their infrastructure, will end up in the cryptocurrency gutter too.

My strong advice, as always: get out, and stay out of the massively toxic

Craig Wright and BSV environment. The tankening is near.

The end. Thanks for reading.

The verdict is in since December 2015.