Jeff Garzik, the software engineer and bitcoin pioneer has recently been subpoenaed by a district court of the United States, which revived the case of the $5 billion bitcoin fraud, allegedly made by nChain’s chief scientist Craig Wright.
It was alleged that Wright forged the documents to show that Dave Kleiman, signed away his bitcoins worth of $5 billion to Wright after his death. According to the documents that surfaced on the web later, Craig and Dave made a tremendous amount of wealth through bitcoin before it made it to the mainstream, and due to the curious case of both of them being self-proclaimed Satoshi Nakamoto, they hid their crypto activities from their family and friends and how much wealth they accumulated. Craig took advantage of this and manipulated contracts and forged Dave’s signatures to take the bitcoins that Dave had gathered/mined over the years. Craig’s statements still remain controversial since then.
Previously, Craig, the self-proclaimed Satoshi Nakamoto also claimed in a twitter exchange with BlockPublisher that the premium currency, bitcoin is nothing but a ponzi. The aggressive tone of Craig Wright portrayed his pessimism related to bitcoin. Upon asking a question regarding ETFs and bitcoin, Craig Wright furiously replied,
There is no need for an ETF and BTC is not an asset – it is a ponzi.
Even if bitcoin was a Ponzi, calling himself Satoshi Nakamoto is nothing but a self destruct move. Thomas Power, the much-trusted crypto influencer also straight up denied the statement of Craig, stating,
Check the history of Charles Ponzi and you will see bitcoin is a new digital asset class that you can choose to buy, hold or sell. That does not define a Ponzi.
Thomas also pointed towards the Google dictionary’s meaning of a Ponzi scheme and said that he didn’t think that bitcoin defined a Ponzi.
The question that immediately arose was that if bitcoin is indeed a ponzi then the approval of an ETF would be impossible. The SEC is very carefully looking into all the aspects of crypto, especially bitcoin. They are already concerned about the fraudulent and manipulative activities taking place on bitcoin and other cryptocurrencies and blockchain in general. They’re trying to find ways for surveillance of the platform for the allowance of an exchange-traded fund to make a better brand image for bitcoin and crypto. In fact, some people say that the approval of an ETF is inevitable. The increasing demand for the ETF from investors and institutions is pressurizing the SEC to look into all the aspects of crypto.
Keeping all these points in mind BlockPublisher inquired that with the presence of all these factors the bitcoin ETF is what the SEC is already looking into. If it was indeed a ponzi why would SEC look into the ETF at all, upon which Craig Wright replied,
Looking is not having. And, there have been Ponzi’s and frauds with ETFs Need we say Enron, Madoff?
Upon asking Eric Thies, the managing partner at UTR equities if he agreed to the statement made by Craig that bitcoin was a ponzi, he furiously replied in an email exchange,
“Apparently Craig Wright has me blocked, which I find entertaining to say the least. My thoughts on his comments – I’ve worked for 2 ‘Ponzi’s’ and bought into them based on the ‘start your own business and become a trillionaire in no time’ pitch. Those companies (ACN & Vemma) profit from bringing in people and having them bring in other people below them and building the ‘pyramid’. Legally, I believe its referred to as an MLM to stay within the law.
I mention this because I leave it open to others to interpret if this is what they think crypto is. I personally do not think so.
To continue, that man once said he was Satoshi Nakamoto. Why would the creator of Bitcoin call his lifes work a Ponzi? The only fraud is Mr Wright.”
Although Craig seems pretty strong on his stance relating to bitcoin being a scam, it makes it hard to believe his statement because of his involvement in a Bitcoin fraud a year back.