Having effectively been told to cough up $5 billion in Bitcoin to his former business partner’s estate, Craig Wright has warned that Ira Kleiman may have to dump $2 billion in Bitcoin for tax purposes alone.
It was decided today that an 18-month courtroom showdown with Kleinman, on the subject of Bitcoin that Wright held before December 31, 2013, in the early days of mining, went in favor of the Wright’s former business partner.
Following that decision, Wright has spoken with Modern Consensus stating he believes that a big Bitcoin dump could be on its way as Ira Kleinman looks to cash out and pay up some taxes.
Wright cut a fairly relaxed figure in the interview following the Judge’s decision that he should hand over 50 percent of the Bitcoin that he held, as well as 50 percent of the intellectual property that the self-proclaimed inventor of Bitcoin owned before December 31, 2013.
“This is not the worst day of my life. My grandfather died, that was worse. This was just money. This is just money. Dave died, that was a worse day for me, because I lost a friend and a partner,” Wright said.
However, he did express that he thought the wrong decision was made, not only for himself and the vast fortune he was sitting on but also for the Bitcoin community at large.
“If you’d left me alone, I would have sat on my f**king money, and you wouldn’t have to worry. And the biggest whale ever has to dump because he has to pay tax. It’s not a transfer. Florida has an estate tax. Trust me. This is not an outcome I would have liked. At the end of the day, that’s not a good thing for BTC,” he added.
The estate tax that Kleinman would have to pay amounts to 40 percent for the figure he is set to get from Wright – that alone means just under 200,000 Bitcoin could be on its way to market, just to cover the hefty bill.
Indeed, a dump like this could have a significant effect on the price of Bitcoin, but moreover, if the sell-off is substantial enough, it could spark an entirely new bear market. Altcoins are known to follow the head of the snake, and in general, have been struggling. Bitcoin meanwhile has had some bearish tendencies of late, making it susceptible to a big sell-off like this.