## Craig Wright Fined £225,000 for AI Misuse in Legal Appeal
Craig Wright, an Australian computer scientist who asserts he is Satoshi Nakamoto, has been fined £225,000 by a London court for the improper use of artificial intelligence while trying to appeal a previous High Court decision that determined he is not Satoshi Nakamoto. In March 2024, a London court confirmed that Wright was not Satoshi and found that he had lied extensively during the trial. Additionally, he has been prohibited from initiating any further legal actions against the cryptocurrency industry.
The Crypto Open Patent Alliance (COPA) and other Bitcoin organizations defended themselves in court and requested that the Court of Appeals require Wright to cover their legal expenses. On Thursday, Lord Justice Arnold ordered Wright to pay £100,000 to cover COPA’s costs and £125,000 for the expenses incurred by other crypto developers due to the case. The judge deemed the fines appropriate, noting that Wright’s appeal lacked merit.
Wright had employed artificial intelligence models to draft his appeal, which resulted in convoluted writing that was at times irrelevant to the case at hand. The AI model he used, still in its early stages for legal defense, relied on outdated case law to support his arguments. Lord Justice Arnold ultimately dismissed Wright’s case in the Court of Appeal.
Wright had sought to contest last year’s High Court ruling that he was not the creator of Bitcoin. Arnold rejected Wright’s appeal, stating it was unnecessarily complicated and disproportionate, posing a risk of misleading the court with superfluous information. In December 2024, Wright was sentenced to 12 months in prison for contempt of court after he filed a new claim for £900 billion related to Bitcoin, despite being barred from initiating further cases. Lord Justice Arnold also presided over that matter.
Thursday’s ruling by the Court of Appeals may mark a precedent, being the first instance where an individual has been ordered to pay costs due to the misuse of artificial intelligence (AI). COPA has requested the court to issue a Civil Restraint Order (CRO) against Wright, aiming to prevent him from filing court cases for three years. Jonathan Hough KC, representing COPA, stated that Wright has misused the legal system to “terrorize” those he perceives as adversaries. Hough further urged the Attorney General to extend the restraint order beyond three years.
“First, Dr. Wright has brought a large number of baseless legal actions,” Hough wrote, “founded on lies and backed up with copious forgeries.” He continued, “Secondly, in those actions, he has claimed huge sums against numerous individuals and companies, causing them serious distress, inconvenience, and cost.” “Thirdly, his actions have consumed significant court resources, amounting to nearly 100 court days in this jurisdiction.” Hough concluded, “The undisputed consequence of his claims has been significant disruption to innovation in an important industry. There is a clear and serious risk of him repeating his campaign of litigation in one form or another.”
Phil Sherrell, Bird & Bird Pa.
