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Nakamoto "unconditionally denies" Newsweek Bitcoin story

Guy Bentley
Nakamoto "unconditionally denies" Newsweek Bitcoin story

The man Newsweek claims to be the father of Bitcoin has issued an unconditional denial that he had anything to do with the creation of the cryptocurrency, reports Reuters Felix Salmon.

The American magazine claimed the 64-year old Dorian Satoshi Nakamoto was the same person as Satoshi Nakamoto who invented Bitcoin.

Nakamoto has denied any involvement with world's favourite digital currency and said the allegations had damaged his career prospects and led to confusion as well as stress for members of his family.

Nakamoto explained in a statment how he had first heard about the cyrptocurrency:

I did not create, invent or otherwise work on Bitcoin. I unconditionally deny the Newsweek report.

The first time I heard the term ‘Bitcoin’ was from my son in mid-February 2014. After being contacted by a reporter, my son called me and used the word, which I had never before heard. Shortly thereafter, the reporter confronted me at my home. I called the police. I never consented to speak with he reporter. In an ensuing discussion with a reporter from the Associated Press, I called the technology ‘bitcom.’ I was still unfamiliar with the term.

 

Since its creation five years ago the digital currency has endured a rollercoaster ride, rising to highs of $1,200 (£720). But the price has dropped back in recent weeks, after key exchange Mt Gox filed for bankruptcy, and as financial watchdogs round the world seek to regulate the currency.

More recently, Bitcoin bank Flexcoin was forced to close after the theft of 896 Bitcoin worth £365,000. On the same day as Flexcoin announced its closure, Bitcoin company Poloniex confirmed that 12.3 per cent of its reserves had been stolen by online hackers.

Bitcoin fans also received more unwelcome news from Japan and Singapore. The Japanese government said that Bitcoin is not a currency and some transactions using it could be taxed.

On Thursday, the Monetary Authority of Singapore said released a statement saying that exchanges will have to identify their customers and report suspicious transactions to the relevant authorities.

The authority also warned users of the potential dangers associated with cryptocurrencies:

Consumers and businesses should take note of the broader risks that dealing in virtual currencies entails and should exercise the necessary caution.
 

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