Bitcoin mining can be conducted to addresses that you do not own. It can be conducted to send to addresses that other people hold, and it can be conducted algorithmically to public keys with the private keys locked away. Ira Kleiman was never close to his brother. In fact, the reason he is not in the will is that Dave didn’t even like him.

Ira Kleiman has presented documents to the court that were not public. They involve some of the documents that were altered when one of my companies was hacked with insider help in the past.

Mr Kleiman is involved in a tax fraud, and is a conman.

His entire purpose in life is greed. When he was offered shares that I’d agreed to give to David Kleiman, my friend, a week before his death, Ira Kleiman refused them because he would have had to pay tax. When he was offered a directorship that I’d promised his brother, luckily for me, Ira turned it down because it would have involved an entire hour or two a month of work.

Ira’s whole purpose upon learning that he had any value locked away was to instantly liquidate it.

Ira Kleiman turned down and rejected shares because I refused to offer them without listing them under taxation requirements. Ira wanted me to give him money under the table so that he would not pay tax. When I refused to do so, Ira worked with the tax office in Australia to falsify information in an attempt to force me into liquidation. The reason for doing so was that I had said to him I would have no plans on selling the shares or on making them public anytime soon. My comment had been that my companies would take around a decade before they would be ready to go public.

You see, even the tax rebate that everybody claims I would get back would only come back in certain liquidation events and never to me. There were no $54 million in rebate as money to the company. The Australian R&D scheme involved a tax-rebate scheme for small amounts.

https://www.business.gov.au/assistance/research-and-development-tax-incentive

If anybody had bothered to check the facts, he would have understood that grouped companies do not get a tax rebate if the total group revenue exceeds $20 million in any year. Our reported revenue was $200 million. Anybody with even an inkling of rational thought would come to understand that $54 million exceed $20 million. You cannot get a rebate against $54 million; what you can get is a deduction. A tax deduction against capital assets would allow the repatriation of bitcoin and other assets that have increased in value. It is a transfer-pricing and international-payment issue. Right now, if a corporation in Australia was to bring or repatriate assets that have experienced a severe capital gain, they will pay tax.

The tax rate in Australia for companies is at present 30%. The rate is already reduced from where it was a few years ago. Selling bitcoin that have appreciated in value several thousands of times will result in a requirement to pay tax. For instance, a company that sold $100 million worth of bitcoin would be required under Australian tax law to pay $30 million in tax.

Which leaves $70 million for the company. Conversely, if the company had a tax offset of $54 million, the taxable income remaining would be lower. In this case, without other deductions, it would be an assessable $30 million. It would mean a tax payment of only $9 million. The result would be that the company would be able to keep $91 million of the bitcoin it sold or that it would have $21 million in additional capital. The government would still have a $9 million increase in revenue over not doing something like it, and further in my case, the 50 or so staff that I have in the UK would likely have been in Australia.

In effect, the end result has been moving operations to another country and providing employment within the UK and Canada instead of Australia.

The money didn’t come from the government for the amounts that would be injected into my companies; it came from me. When Ira and others attempted to liquidate my companies, it was so that they could get access to money that they were not entitled to.

Going right back to Jamie Wilson, who fabricated documents as CFO and then left me without even giving me access to all of the documents he had been working on, the story has been one of individuals who think they deserve more than the salary that they are being paid. Multiple staff members of Hotwire sought to put the company into liquidation and force such a scenario. At one point, Jamie Wilson had made a deal with people in New York in 2013 to sell both my intellectual property and my bitcoin. Mr Wilson was never involved with Dave Kleiman, had never met him nor had any association with anything to do with him. He was CFO of Hotwire, an Australian Company I founded between June 2013 and Nov 2013.

You wonder why he was fired.

I use companies for a reason. Unlike personal arrangements, you can set up structures that cannot easily be bypassed. As an example, my dealings with FASV where I created a set of intellectual property that was patented jointly with Jamie were conducted with the company I owned called Panopticrypt.

Luckily, Mr Wilson had no idea of the corporate requirements of the company. As such, his assignment documents that he filed are easily invalidated.

If you wonder why I’m paranoid, it’s very simple: I have lots of people wanting things that are not theirs. Lots of greedy frauds want money. They want to claim rights to intellectual property. They want to claim rights to bitcoin that they’ve never had any involvement with. They want knowledge of what I’m doing so they can manipulate markets. They want to steal, and they want to defraud people.

Well, luckily in 2011, in my paranoia that came about as the Australian Taxation Office was attempting to bankrupt me before my hearing, so that I would not be able to have my hearing, I moved everything into trusts. All of my company assets were already company assets. Wright International Investments Ltd is a company from 2009. What people don’t seem to understand is that company assets are not personal assets.

If you inherit shares in an unlisted company, you do not get rights to liquidate the company if you are only a minority shareholder. But such is what Mr Kleiman wanted to do; he wanted money immediately. He didn’t care that his brother was dead, he saw the dollar signs.

The result of his greed is that he will get nothing. He could have worked, and I’m glad he didn’t, because he is nothing like his brother. All he cared about was getting money immediately.

I got rants from him on a daily basis that would waste my time that I needed to work, to respond to compliance issues and just to run the business. He bitched at me on a daily basis how he didn’t realise it could take years before he would see any realisable money. He didn’t like the fact that I didn’t want the company to be widely seen in the public eye. He didn’t like that I wasn’t going to admit that I was Satoshi Nakamoto and run around publicly. You see, he thought he could make money out of it.

I will sell most of my shares, but would still like to retain a small portion as part of Dave’s involvement. For 6 million USD I would sell 90% of my shares. One quarter paid upfront and the remaining 4.5 paid after the R&D money is approved. This limits exposure for each of us. I will then sign a confidentiality agreement and we are all left in a comfortable position. The R&D payments will more than recoup the investors outlay plus they have 90% of our share value.

(The above paragraph is a direct quote from Ira Kleiman when in 2014 he was seeking to extort companies into fraudulently gaining access to money and assets he had no right to. Basically, these forms of extortion come from scumbags who seek to use threats of litigation to have companies settle claims that have no basis in truth).

The research and development money was not money from the tax office as he runs around claiming. It was the ability to move capital without losing a large amount of it to taxation. And it was a capital injection of my money. It meant that I could sell bitcoin and capitalise the company further without giving up so much of my investment to the government. Doing so would dilute the shares including Mr Kleiman’s. It’s what capital injections do.

If I inject capital into the company to pay the bills for what I’m doing, I dilute everyone else’s capital and equity. There were shareholder agreements associated with all shares, including the ones that Mr Kleiman sought to sell. His offer was to sell 90% of the shares for $6 million which would in his mind be deposited without tax.

Mr Kleiman wanted money for nothing. The end result is that he will have nothing. He has every right to get involved with the company he had shares with. He can do so even now. Such is how reality works.

Other scammers such as “Scronty” appeared because people like Mr Kleiman helped share information with them.

The value of the company in Australia, Coin-Exch, came from intellectual property that I’d transferred into it. It included core banking software. Anybody who’s ever been involved with the core banking project will know how large and expensive it is. Eventually, it will see the light of day and end up as a commercial project. We demoed a working version of a commercial bank based on Bitcoin to the Australian Taxation Office in 2014. The comment I received was all that money paid and it had an ugly front-end.

Ira was told that he would be receiving shares in his name and that they would be transferred with all of the legal processes which would result in tax. The simple fact of the matter is that he tried to rip off Dave’s father and lied about the nature of how he became executor.

Ira worked with other people as far as I can tell to ensure that the company was forced into liquidation. In liquidation, he could take money. He didn’t want to slowly build a company, he wanted money immediately. The truth of Ira Kleiman is that he is a greedy conman who helps destroy things and as a consequence will likely be sued for fraud very shortly.