Update: April 8 at 1:01am UTC: This article has been updated to include James Murphy’s responses to two questions from Cointelegraph.
A crypto lawyer has sued the US Department of Homeland Security, alleging the agency may know who created Bitcoin — compelling the department to share what it knows.
The Freedom of Information Act lawsuit was filed by James Murphy, who based his accusations on claims made by DHS Special Agent Rana Saoud at a conference in April 2019, where she said a few of her colleagues had previously met with four people involved in creating Bitcoin.
“My FOIA lawsuit simply asks for the notes, email and other documents relating to that alleged interview,” Murphy posted to X after announcing the April 7 suit.
“IF the interview really happened as the DHS Agent claimed, there should be documentation of the substance of that meeting,” added Murphy, who goes by MetaLawMan on X.
Speaking at the OffshoreAlert Conference North America in Miami in April 2019, Saoud said DHS agents met with the four people it believed to have created Bitcoin, asking what their motives were and what the “end game” is for Bitcoin.
“The agents flew to California and they realized that he wasn’t alone in creating this, there were three other people, they sat down and talked with them to find out how this actually works and what the reason for it was,” Saoud said in the presentation, which is available on YouTube.
If the DHS resists disclosure, Murphy said he will “pursue the case to conclusion” to solve the mystery.
Murphy, however, noted that it is possible that Saoud and the other DHS agents were mistaken and did not interview the real Satoshi Nakamoto.
Murphy is being assisted by former Assistant US Attorney Brian Field, who specializes in Freedom of Information Act litigation.
The purpose of the Freedom of Information Act is to promote transparency and accountability by granting the public access to information held by the government.
2 questions for James Murphy, aka MetaLawMan
Cointelegraph asked Murphy two questions about the DHS lawsuit. Here are his responses in full.
Question #1: What is your gut feeling—do you think the DHS actually interviewed the real Satoshi?
Answer: “I think it’s very possible that the DHS agent was mistaken in what she said at that conference. I think DHS agents may have met with bitcoin code maintainers, or with actual Satoshi imposters. But, who knows? The DHS agent was a pretty high ranking official and was in a position to know what she was talking about. Either way, I think it will be productive to find out and hopefully resolve this question. Nothing prevents DHS from voluntarily revealing the information without need for protracted litigation.”
Question #2: If the agency did speak with the four creators — who may be ordinary US citizens — why do you believe revealing their identities serves the public interest, even if it could put their safety or privacy at risk?
Answer: “I don’t understand the question. The identities of the creators of all of the largest blockchain projects, like Charles Hoskinson and Vitalik Buterin etc., are all well known in the crypto community. There are also many major figures like Michael Saylor, Tim Draper and others who have amassed enormous wealth through investment in bitcoin and their identities are well known.
There are hundreds of documentaries on YouTube where amateur sleuths have tried to identify Satoshi. I’m not one of them. I’m not hiring investigators to try to track down Satoshi, I’m seeking government records under transparency laws in effect in the U.S. If DHS did, in fact, learn Satoshi’s identity, then I’m not sure what the rationale is for dozens of government employees to have this information but withhold it from the general public.
Our government is required to be transparent and not keep secrets from the citizens, absent a legitimate national security concern or other limited exemption. We consider this a fundamental aspect of our freedom in the USA. It is why we have something called the “Freedom of Information Act.” Transparency is good, the government hiding information from the citizenry is generally bad.
I am open about the fact that I am pro-bitcoin, having been an investor in bitcoin and a bitcoin miner since 2017. I speak to groups of executives and policy makers about bitcoin and I advocate for bitcoin adoption. What I find when I give these talks is very often these audiences (who are new to bitcoin) struggle with the idea that the creator of bitcoin is unknown while the provenance of the other major crypto projects is (relatively) transparent.
So, my intention is to either conclusively refute the claim of the DHS agent that they interviewed Satoshi, or achieve some transparency that will open the door to greater bitcoin adoption in the U.S. and around the globe. I support President Trump’s initiatives to establish a Strategic Bitcoin Reserve and Digital Asset Stockpile.
Since the bitcoin code is open source and can only be changed through the Bitcoin Improvement Proposal (BIP) procedure, Satoshi (if he or they were identified) would have no ability to unilaterally affect changes to bitcoin. As a result, any revelation of Satoshi’s identity is unlikely to adversely impact bitcoin. It’s more likely that such transparency would be a net positive for growing bitcoin adoption. Others may have different views on that and I respect their opinions.”
Efforts to identify Satoshi Nakamoto have failed
The lawsuit follows a wave of recent efforts attempting to uncover Satoshi’s identity.
Last October, a controversial HBO documentary claimed that Peter Todd, a Bitcoin cypherpunk, invented Bitcoin. Todd refuted that conclusion, and most industry pundits said HBO’s evidence was weak.
Nick Szabo, Adam Back and Hal Finney have also had their names tied to Satoshi’s identity. Szabo and Back regularly refute claims they’re Satoshi, as did Finney before he died in 2013.
Meanwhile, members of the Bitcoin community are split on whether unveiling Satoshi’s identity would be a net positive for Bitcoin.
Some worry that revealing Satoshi’s identity could compromise Bitcoin’s decentralized ethos and put Satoshi’s safety at risk, while others want to be reassured that Bitcoin wasn’t created by the US government.
The acting chair of the Federal Deposit Insurance Corporation (FDIC), the regulatory body overseeing banks in the US, is reportedly considering guidance for tokenized deposit insurance and plans to launch an application process for stablecoins by year’s end.
Acting FDIC Chair Travis Hill, who has made bullish statements about tokenization in the past, told the Federal Reserve Bank of Philadelphia’s Fintech Conference on Thursday that the regulator will eventually release guidance around tokenized deposit insurance, according to reports.
The FDIC protects depositors in the event of a bank failure and insures money in accounts at banks that are insured by the regulator.
“My view for a long time has been that a deposit is a deposit. Moving a deposit from a traditional-finance world to a blockchain or distributed-ledger world shouldn’t change the legal nature of it,” Hill said, as reported by Bloomberg.
Excluding stablecoins, the total value of tokenized real-world assets surpassed $24 billion in the first half of the year, with private credit and US Treasurys making up the bulk of the market, according to a report by RedStone.
BlackRock, the world’s largest asset manager, is one of the most prominent players in the space and launched a tokenized money market fund called BUIDL in 2024.
Stablecoin application regime by the end of the year
At the same time, Hill reportedly announced the agency is also working on a regime for stablecoin issuance and expects to issue a proposal for an application process by the end of 2025 as part of its duties in crafting rules under the GENIUS Act, according to Law360.
He said it’s still too early to know how many institutions will be interested, but the FDIC staff is working on the standards around capital requirements, reserve requirements and risk management for FDIC-regulated stablecoin issuers.
Stablecoins have also been a high-growth area, with banks worldwide exploring this technology. The market capitalization of stablecoins is approximately $305 billion as of Friday, according to blockchain analytics platform DefiLlama.
Stablecoins have been a high-growth area this year, with a market capitalization of around $305 billion. Source: DefiLlama
Sir Keir Starmer and Rachel Reeves have scrapped plans to break their manifesto pledge and raise income tax rates in a massive U-turn less than two weeks from the budget.
I understand Downing Street has backed down amid fears about the backlash from disgruntled MPs and voters.
The Treasury and Number 10 declined to comment.
The decision is a massive about-turn. In a news conference last week, the chancellor appeared to pave the way for manifesto-breaking tax rises in the budget on 26 November.
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3:53
‘Aren’t you making a mockery of voters?’
The decision to backtrack was communicated to the Office for Budget Responsibility on Wednesday in a submission of “major measures”, according to the Financial Times.
The chancellor will now have to fill an estimated £30bn black hole with a series of narrower tax-raising measures and is also expected to freeze income tax thresholds for another two years beyond 2028, which should raise about £8bn.
Tory shadow business secretary Andrew Griffith said: “We’ve had the longest ever run-up to a budget, damaging the economy with uncertainty, and yet – with just days to go – it is clear there is chaos in No 10 and No 11.”
How did we get here?
For weeks, the government has been working up options to break the manifesto pledge not to raise income tax, national insurance or VAT on working people.
I was told only this week the option being worked up was to do a combination of tax rises and action on the two-child benefit cap in order for the prime minister to be able to argue that in breaking his manifesto pledges, he is trying his hardest to protect the poorest in society and those “working people” he has spoken of so endlessly.
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13:06
Ed Conway on the chancellor’s options
But days ago, officials and ministers were working on a proposal to lift the basic rate of income tax – perhaps by 2p – and then simultaneously cut national insurance contributions for those on the basic rate of income tax (those who earn up to £50,000 a year).
That way the chancellor can raise several billion in tax from those with the “broadest shoulders” – higher-rate taxpayers and pensioners or landlords, while also trying to protect “working people” earning salaries under £50,000 a year.
The chancellor was also going to take action on the two-child benefit cap in response to growing demand from the party to take action on child poverty. It is unclear whether those plans will now be shelved given the U-turn on income tax.
A rough week for the PM
The change of plan comes after the prime minister found himself engulfed in a leadership crisis after his allies warned rivals that he would fight any attempted post-budget coup.
It triggered a briefing war between Wes Streeting and anonymous Starmer allies attacking the health secretary as the chief traitor.
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3:26
Wes Streeting: Faithful or traitor? Beth Rigby’s take
But the saga has further damaged Sir Keir and increased concerns among MPs about his suitability to lead Labour into the next general election.
Insiders clearly concluded that the ill mood in the party, coupled with the recent hits to the PM’s political capital, makes manifesto-breaking tax rises simply too risky right now.
But it also adds to a sense of chaos, given the chancellor publicly pitch-rolled tax rises in last week’s news conference.
The home secretary is set to unveil sweeping reforms to tackle illegal immigration, as she considers potential changes to human rights law.
Shabana Mahmood will announce on Monday a series of measures to make it easier to remove and deport illegal migrants, and reduce the “pull factors” that make the UK attractive to asylum seekers.
The Home Office said they would be the “most sweeping reforms to tackle illegal migration in modern times”.
She is said to believe that “excessive generosity and ease of remaining” in the UK, along with systemic barriers, has made deportations extremely difficult, The Times reported.
It is understood that many of the changes set to be proposed by the home secretary will be modelled on the Danish system, under which 95% of failed asylum seekers are deported.
Denmark has tighter rules on family reunions, and restricts some refugees to a temporary stay.
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2:56
UK considers copying Denmark’s immigration system
Ms Mahmood is also mulling reforms to the European Convention on Human Rights and human rights law to “end the abuse of the system that leads to unjustified claims to delay or stop deportations”, a Home Office source said.
The overhaul of modern slavery laws will require migrants to make a claim that they have been a victim as soon as they arrive in the UK, rather than allowing them to raise it unexpectedly later on, which has resulted in delayed deportations, The Telegraph reported.
The number of offences qualifying foreign criminals for automatic removal is also set to be increased, the paper said.
And judges are expected to be required to prioritise public safety over claims from migrants that deporting them would breach their family rights or put them at risk of “inhuman” treatment if they were returned to their home country.
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4:42
Sky News witnesses people smuggling operation in Dunkirk
Deportations are up – but so are boat crossings
Ahead of next week’s announcements, the Home Office released new figures showing 48,560 people have been removed from the UK since Labour came to power.
The figure, which includes failed asylum seekers, foreign criminals and others with no right to be in the UK, is a 23% increase compared to the 16 months before last year’s election.
Ms Mahmood said: “We’ve ramped up enforcement, deported foreign criminals from our streets, and saved taxpayers millions.
However, small boat crossings continue to rise – 39,075 people have made the journey so far this year, according to Home Office figures.
That is an increase of 19% on the same point in 2024 and up 43% on 2023, but remains 5% lower than the equivalent point in 2022, which remains the peak year for crossings.