In the latest development in the legal battle between self-proclaimed Bitcoin inventor Craig Wright and 12 Bitcoin Core developers, attorneys representing the developers filed a preliminary issue application with the UK High Court. The legal maneuver aimed to challenge Wright’s claims of ownership of 111,000 Bitcoin, allegedly stolen from the Mt Gox exchange.

Timothy Ellis, an attorney with Enyo Law LLP, emphasizing the seriousness of the allegations against Wright, said in the filing: 

[We] seek to have this claim struck out on the ground that it is a fraudulent claim and an abuse of process. They seek disclosure and other case management directions to enable this threshold issue of fraud to be determined as a preliminary issue.

The defense argued that Wright had failed to provide any substantial documentation to prove his ownership of the missing Bitcoin. They accused him of fabricating the limited documents submitted to the court.

A preliminary issue application, a legal tool used to resolve specific issues before a trial, was employed to save time and money for all parties involved potentially. The lawsuit, known as “Tulip Trading Limited v. Bitcoin Association For BSV & Others”, took its name from Wright’s company. The defense’s application requires Tulip Trading Limited to present evidence demonstrating its ownership of the Bitcoins in question. Additionally, the defense requested that Tulip Trading provide a security payment of $1.63 million to cover the cost of the case if it was ultimately dismissed.

Attorneys for the Bitcoin Core developers argued that Wright and his company had no ownership rights to the Bitcoin involved in the lawsuit. If the court sided with the developers, Tulip Trading Limited would have had to prove its ownership of the digital assets before the case could proceed.

The Bitcoin Legal Defense Fund, a non-profit organization established in 2021, provides support to the Bitcoin Core developers in this legal battle. The fund also aids the defense of the Bitcoin Core developers targeted in Wright’s previous lawsuit. As of the time of reporting, there have been no official comments from the Bitcoin Association for BSV or attorneys for Tulip Trading Limited regarding this matter.