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Bitcoin claim ripples through virtual currency world
By Luc OLINGA
New York (AFP) May 3, 2016


Elusive Aussie Bitcoin founder a reluctant identity
Sydney (AFP) May 3, 2016 - Secretive Australian entrepreneur Craig Wright, who has revealed himself as the creator of the virtual Bitcoin currency, is an elusive individual who appears to have covered his tracks well.

Details are scant on the Brisbane-born computer scientist, 45, who has a blog but warns against any of the content being published without his permission.

He admitted on Monday to being the creator of the cryptocurrency after months of speculation about his role, providing technical "proof" amid debate over whether it was true.

But the public-relations firm that has worked with him, the Outside Organisation, calls the media-shy Aussie "an inventor and academic" who used the pseudonym Satoshi Nakamoto to protect his identity.

His cover was first blown by tech-focused websites Wired and Gizmodo, when they went public in December with evidence that pointed towards him being the brains behind the currency.

Wright himself told the BBC: "I don't want money, I don't want fame, I don't want adoration, I just want to be left alone."

He claimed other people had decided he should go public, adding to the mystery.

Wright studied at Australia's Charles Sturt University, which has campuses across the country, including Sydney, Melbourne and Brisbane, and left highly qualified.

While there he completed a masters degree in networking and systems administration, another one in management, focused on information technology, and a third in information systems security.

He maintained a close relationship with CSU and spent three years at the facility as an adjunct academic between 2011 and 2014.

The university stressed it was an unpaid position and he was not formally employed.

"CSU can make no comment on Mr Wright's activities outside the university and will make no further comment on his education or employment," CSU said.

Until recently the elusive Wright was director of more than a dozen companies, some involved in cryptocurrency, but divested himself of 12 of them in the space of a week in July 2015, The Guardian reported.

- Difficult to track down -

After years of guesswork over who invented Bitcoin, the finger was first pointed at Wright when an anonymous source close to him began leaking documents to Gwern Branwen, a pseudonymous, independent security researcher and dark web analyst, Wired said.

Branwen passed the details to Wired, and they immediately led to several direct, publicly visible connections between Nakamoto and Wright, it added.

But tracking him down proved difficult.

Wired said it sent an encrypted email to Wright suggesting they knew his secret and asking for a meeting. A few hours later, they got a wary response from the address [email protected].

It said the email's IP was based in Panama and controlled by Vistomail, the same service that Satoshi Nakamoto had used to send his emails introducing Bitcoin and to run Bitcoin.org.

Two more emails arrived from the same address, including one that said: "You seem to know a few things. More than you should," before he stopped responding.

Around this time, Wright lived in Sydney with his wife and two children who attended a local public school, neighbours told Australian media, describing the family as somewhat reclusive but normal.

They reportedly left for London shortly before the home was raided in a tax probe.

With his identity now out in the open, the reluctant Wright said on his blog he wanted to "create a forum about Bitcoin, which dispels myths and helps to unleash its full potential", according to the Outside Organisation.

The world of virtual currencies was stunned Monday when Australian entrepreneur Craig Wright claimed to be the creator of the Bitcoin.

The shockwaves were clear as cypto-currency specialists gathered in New York for a conference on the blockchain technology behind Bitcoin and similar virtual forms of money.

"It's nicer if we keep the myth," said Dirk Avau, founder and chief executive of the financial tech firm Intellect Technologies, at the Consensus 2016 conference.

"If the myth now is broken, it's unfortunate. It was a wonderful story about an inventor who managed to change the world."

Wright was named by three media outlets -- the BBC, The Economist and GQ magazine -- and posted a blog on his website claiming credit for creating Bitcoin, a digital currency created by supercomputers and then traded online or exchanged for goods and services by a peer-to-peer network of computers.

Little biographical detail is known about Wright, who describes himself as a cyber-security expert and was born in Brisbane but, according to The Economist, has now moved to London.

- Skepticism, disbelief -

At the New York conference and elsewhere, the news was greeted by some with disbelief.

Matthieu Riou, founder of the blockchain tech platform BlockCypher, said he believes Wright was "part of the whole thing" but not the sole creator of Bitcoin, which has been attributed until now to someone using the pseudonym Satoshi Nakamoto.

"I don't think that he did it by himself," Riou told AFP at the conference.

Jason Park of the South Korean-based software form Korbit echoed the view that "Nakamoto was not a one person."

Park added that Bitcoin "is already run by a community not one person," and argued that "there is no founder."

BlockCypher chief executive Catheryne Nicholson said she was not persuaded by the news, saying Wright could remove any doubt by producing the "keys" that unlock the Bitcoin cryptographic codes.

"I don't believe him, I am still skeptical," she said.

Since the Bitcoin was launched in 2009, it has gained notoriety as a shadowy currency for illicit transactions.

But the blockchain technology behind Bitcoin, which offers verifiable online ledgers, has been touted as a way to potentially transform banking and other kinds of financial transactions.

A consortium of global banks including Morgan Stanley, HSBC, UBS, Credit Suisse, Barclays, Societe Generale and Commerzbank are working with the finance tech startup R3 to use blockchain technology for a wide range of applications.

Others moving forward include Bank of America, Citigroup and Goldman Sachs, which is working on its own virtual currency.

Jeffrey Wallis of Noble Markets said the news about the creator doesn't matter.

"The space has already moved on regardless of the identity of the person," he said. "It's irrelevant because the momentum of the Bitcoin has extended beyond one individual... This is an industry."

Gabriele Domenichini of the Italian-based blockchain association Assob.it said the news could be a "disruption" that impacts the value of the Bitcoin, but only in the short term.

"The price has dropped a little bit. This is another attempt to disrupt the Bitcoin world but I don't think it's a substantial disruption," he said.

"If it's really him, the impact could be really big because he got something like one million Bitcoin."

Domenichini said there are 15 million Bitcoins in circulation but only 14 million can be spent.

"The person who claims to Satoshi is a target because he's got $450 million and he doesn't have the protection needed," he added.


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