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Lawyer sues US homeland dept to probe supposed Satoshi Nakamoto meeting

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.

Lawyer sues US homeland dept to probe supposed Satoshi Nakamoto meeting

Source: James Murphy

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.

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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.

Magazine: 10 crypto theories that missed as badly as ‘Peter Todd is Satoshi’

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Vietnam is leveraging crypto regulation to meet FATF standards, combat digital asset fraud and rebuild its international financial reputation.

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Building societies step up protest against Reeves’s cash ISA reforms

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Building societies step up protest against Reeves's cash ISA reforms

Building society chiefs will this week intensify their protests against the chancellor’s plans to cut cash ISA limits by warning that it will push up borrowing costs for homeowners and businesses.

Sky News has obtained the draft of a letter being circulated by the Building Societies Association (BSA) among its members which will demand that Rachel Reeves abandons a proposed move to slash savers’ annual cash ISA allowance from the existing £20,000 threshold.

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The draft letter, which is expected to be published this week, warns the chancellor that her decision would deter savers, disrupt Labour’s housebuilding ambitions and potentially present an obstacle to economic growth by triggering higher funding costs.

“Cash ISAs are a cornerstone of personal savings for millions across the UK, helping people from all walks of life to build financial resilience and achieve their savings goals,” the draft letter said.

“Beyond their personal benefits, Cash ISAs play a vital role in the broader economy.

“The funds deposited in these accounts support lending, helping to keep mortgages and loans affordable and accessible.

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“Cutting Cash ISA limits would make this funding more scarce which would have the knock-on effect of making loans to households and businesses more expensive and harder to come by.

“This would undermine efforts to stimulate economic growth, including the government’s commitment to delivering 1.5 million new homes.

“Cutting the Cash ISA limit would send a discouraging message to savers, who are sensibly trying to plan for the future and undermine a product that has stood the test of time.”

The chancellor is reportedly preparing to announce a review of cash ISA limits as part of her Mansion House speech next week.

While individual building society bosses have come out publicly to express their opposition to the move, the BSA letter is likely to be viewed with concern by Treasury officials.

The Nationwide is by far Britain’s biggest building society, with the likes of the Coventry, Yorkshire and Skipton also ranking among the sector’s largest players.

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In the draft letter, which is likely to be signed by dozens of building society bosses, the BSA said the chancellor’s proposals “would make the whole ISA regime more complex and make it harder for people to transfer money between cash and investments”.

“Restricting Cash ISAs won’t encourage people to invest, as it won’t suddenly change their appetite to take on risk,” it said.

“We know that barriers to investing are primarily behavioural, therefore building confidence and awareness are far more important.”

The BSA called on Ms Reeves to back “a long-term consumer awareness and information campaign to educate people about the benefits of investing, alongside maintaining strong support for saving”.

“We therefore urge you to affirm your support for Cash ISAs by maintaining the current £20,000 limit.

“Preserving this threshold will enable households to continue building financial security while supporting broader economic stability and growth.”

The BSA declined to comment on Monday on the leaked letter, although one source said the final version was subject to revision.

The Treasury has so far refused to comment on its plans.

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