Faketoshi, The Early Years Part 1
MyLegacyKit (Link to original medium.com post)
Gregor Sailer: Carson City VI/Vågårda, Sweden, from the series “The Potemkin Village, 2016
Written by Arthur van Pelt, with assistance from CryptoDevil
ABOUT EDITS to this article: as more material might become available
after publication of this article, it will have edits and updates every now
and then. In that sense, this article can be considered a work in progress,
to become a reference piece for years to come.
How did Craig Wright (full name Craig Steven Wright) become one of a
plethora of modern day Satoshi Nakamoto pretenders — of whom Jorg Molt,
accused of defrauding $214 million from 50 investors, was finally arrested a
few weeks ago?
Lets try to find an answer to this question, and map out what we know
about the years 2003–2013 (Ryan v Wright lawsuit, and aftermath) and
2011, when Craig apparently first learned about Bitcoin, up till the very end
of 2015 when Wired and Gizmodo magazines published their now infamous
articles about Craig Wright possibly being Satoshi Nakamoto. And let’s not
forget about the ATO raids that quickly followed the next day! Are these
events related after all, or not?
One of the most infamous Craig “FaketoshiWright forgeries backdated March 2008, created after April 2013. The
domain information-defense.com was only registered in January 2009, for example.
In this series of three articles, we will learn everything about the Ryan v
Wright lawsuit that ran from 2003 to 2006, including all appeals, but had an
aftermath till 2013 which almost caused Craig to go bankrupt. Then there’s
the fraudulent 2013 New South Wales Supreme Court claims, the extremely
thorough ATO inquiry in 2013 — 2015, and we will of course show the reader
a fair number of the numerous forgeries that Craig Wright created in 2013,
2014 and 2015 to support his Bitcoin fraud and false Satoshi claims.
Part 1 will cover November 2003February 2014.
Part 2 will cover February 2014 December 2014.
Part 3 will cover January 2015 December 2015.
Disclaimer: You will see many times the $ symbol being used. Since Craig
Wright lived in Australia in the period of these articles, the $ symbol used in
numbers related to Craig will always refer to the Australian dollar (AUD),
except where indicated otherwise.
The Run Up
In 1999, Craig raised one Australian company:
Vin De La Terre Pty Ltd (June 9, 1999)
which morphed into DeMorgan Information Security Systems Pty Ltd
(December 17, 2001)
In 2001, Craig raised another Australian company:
Ridges Estate Pty Ltd (December 17, 2001)
Let us begin, at the outset, by framing both the character and the historical
behaviour of Craig Wright, in providing you a summary of his legal
'difficulties' arising from a breach of contract and subsequent contempt of
court in 2003.
Original hearing October 30, 2003 and resulting Judgement November 6,
Craig and Lynn Wright were, in a personal capacity and through ownership
of a corporate entity shareholder, the majority owners of the Australian
company DeMorgan Information Security Systems Pty Limited.
"The company’s business includes the provision of information technology
consulting services in general, and specifically the monitoring of computer
systems to guard againsthackers” or other unauthorised intruders."
Its main customers were the Australian Stock Exchange (ASX), Craig's
former employer, along with the Rail Infrastructure Corporation (RIC) and a
number of other businesses. At the end of June 2003, the shareholders of
DeMorgan entered into an agreement with Michael Ryan, to sell 5% of the
company shares to him for $50,000. Part of the agreement included a non-
compete clause which, it doesn't take a law degree to understand, precludes
those involved from attempting to poach the company's clients should they
subsequently leave its employ.
One month later, following their new investors all-too-late discovery of
questionable spending within the company, Craig and Lynn Wright resigned
as directors and, you guessed it, Craig set about approaching DeMorgan's
clients for business, including his former employer the ASX, where he still
maintained a good relationship with its employees, with him being cited as
claiming he would “spend over a million dollars to see DeMorgan go under.
Ironically, it would turn out that Craig would, indeed, be found liable for a
little under half that amount following the resulting liquidation of DeMorgan
arising from his damaging behaviour. A $425,000 bankruptcy notice being
charged against Craig Wright in recovery actions sees him eventually settle
to avoid the inevitable in 2013.
DeMorgan's new shareholder, clearly smarting from having invested in a
business hed not been given the full truthful picture of, only to see its board
members abandon ship one month later and set about damaging the value
of his investment further, took them to court, where they were found guilty
of a breach of contract and instructed to cease and desist from further
contact with the company's clients.
This is the part in the movie where a narrator would cut in with a wry, "Craig
Wright did not cease and desist from further contact with the company's
Fast forward to 2004 and Mr Ryan has now had Mr and Mrs Wright dragged
back into court for their nefarious activities in contravention of the original
court's judgement.