EXCERPTS FROM TRANSCRIPT TRIAL DAY 062922

The following court testimony transcript references the 2,500 bitcoin payment. Please take your time with the testimony as getting information out of Patrick Strateman was akin to pulling teeth. Still, the information is all there. Few trials have moments like Jack Nicolson's iconic scene in A Few Good Men; the bad guy doesn't just come out and confess. But here we see that there was a 2,500 bitcoin payment and subsequent payments in the benefit of Amir Taaki. The subsequent payments were never mentioned or discovered before trial despite having deposed Patrick on two separate occasions.

Furthermore, the other linked Exhibit shows that this transfer was made to the third party company in the name of Amir Taaki on March the 18th, 2014 (notice the date relating to the transfer, not the date of the document). March 18th, 2014 is in between my emails pleading for Taaki to hold Strateman accountable and make sure that people have been paid back. March 18th, 2014 is 15 days after the site was taken down.

21 Q. So, Mr. Strateman, there was an incident

22 where you gifted 2,500 Bitcoin to Amir Taaki; is

23 that correct?

24 A. Yes.

25 Q. And so after you gifted him the 2,500

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1 BTC -- withdrawn. That BTC that you gifted to Mr.

2 Taaki, that was from the salary you took from

3 Intersango; is that correct?

4 A. Yes.

(continued)

11 Q. And with respect to the remainder of

12 that 1,000 that remains, what happened to those

13 1,000 Bitcoin?

14 A. So, in 2014 I transferred 20 Bitcoin to

15 Cody Wilson for Amir Taaki's benefit. He needed

16 funds to pay for an attorney in New York. He

17 jumped a turn style in the subway allegedly, and

18 then another 25 related to the same matter in 2014

19 and then 400 to Amir Taaki, which was related to

20 the CloudHashing recovery.

21 BY MR. YEH:

22 Q. So --

23 A. So, that was -- there was this -- there

24 was a gift to Amir and then there was a loan to

25 CloudHashing, and CloudHashing became a new

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1 company only a month or two later, and this was a

2 loan that was from March to June, I believe, and

3 the new company, which was a merger of two

4 businesses refused to pay the loan at all. So I

5 had to enforce the loan, and I had basically got

6 Amir into this, so I felt that it was my fault

7 that he didn't have access to the 2500, so I sent

8 him 400, which is effectively part of the 2500, if

9 that makes sense.

10 Q. Well, Mr. Strateman, if I understand

11 this correctly, the 400 is part of the 2500 or is

12 it on top of the 2500?

13 A. There is a distinct different payment,

14 but it's effectively offset against the 2500,

15 which had to be collected from CloudHashing in

16 Santa Clara Superior Court. We settled before

17 trial, but that covered through Court action.

18 Q. Mr. Strateman, I do want to make sure I

19 understand. You referenced 400 to Amir Taaki and

20 then I think 20 and 25, so you're at 445 that went

21 to Amir Taaki, which was his benefit; is that

22 correct?

23 A. Yes.

24 Q. And sorry. I apologize.

25 A. It's not separate from the 2500. It's

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1 just they are different transactions because I

2 didn't -- I wasn't able to get CloudHashing to

3 make good on their loan.

4 Q. Well, Mr. Strateman --

5 A. The loan was assigned to me.

6 Q. I want to make sure I understand this

7 correctly, because you say that there are separate

8 transactions but they are not separate and

9 distinct. I want to drill down on this. This 445

10 Bitcoin we have been talking about, is it safe to

11 say that that is separate and distinct from the

12 2,500 that you loaned to CloudHashing purportedly

13 on Amir Taaki's behalf?

14 A. So it's separate Bitcoin transactions

15 because when those transactions were made Amir

16 didn't have access to the 2500 because

17 CloudHashing, which then become Pure Nova under

18 different management, refused to pay the loan and

19 I worked at Pure Nova, so I felt pretty

20 responsible for that at that point.

21 Q. Mr. Strateman, we're going to talk about

22 the CloudHashing in a little more detail later.

23 Let me ask this question in a different way. Did

24 you end up spending 2,945 Bitcoin in Amir Taaki's

25 favor?

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1 A. So, again, the 445 roughly was part of

2 the 2500, but Amir couldn't access it, and the

3 price at the time was about the same, so they are

4 effectively, like, offset.

5 Q. Mr. Strateman, I apologize because I'm

6 actually still not understanding. You were giving

7 Amir Taaki this Bitcoin or, at least, using it on

8 his behalf. Can we agree on that?

9 MS. HEATON: Objection. Vague as to

10 "this Bitcoin."

11 MR. YEH: I apologize.

12 THE COURT: Sustained.

13 Go ahead.

14 MR. YEH: So, Mr. Strateman, there was

15 2,500 Bitcoin that was used as a CloudHashing

16 loan; is that correct?

17 THE WITNESS: Yes, or a loan to

18 CloudHashing for, like, three or four months.

19 BY MR. YEH:

20 Q. And you never saw that Bitcoin returned

21 back to you; is that correct?

22 A. They eventually settled and paid in, I

23 think, it was quarterly cash payments.

24 Q. Okay. So this -- we talked about this

25 445 Bitcoin. That wouldn't factor in to the full

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1 2,500 Bitcoin; is that correct?

2 A. The 445 is not Bitcoin that I have

3 anymore, but isn't an additional gift to Amir

4 outside of the 2500.

5 Q. So, your point is that -- let's go

6 through step by step. So you expended 2,500 as

7 part of this loan for CloudHashing. You are down

8 2,500 Bitcoin; is that correct?

9 A. I wouldn't say expended it. It was a

10 loan.

11 Q. Well, you gifted it to -- you gifted it

12 to Amir?

13 A. Yes.

14 Q. You are down 2,500 as a gift to Amir;

15 can we agree on that?

16 A. Yes.

17 Q. And then you are down another 20 Bitcoin

18 because Mr. Taaki allegedly jumped the turn style;

19 is that correct?

20 A. 45.

21 Q. 20 and then 25, right?

22 A. Yes.

23 Q. Okay. So you're down 45 Bitcoin helping

24 Amir -- helping Mr. Taaki when he allegedly jumped

25 a turn style; is that correct?

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1 A. Am I really down at this point because

2 there is a loan that -- I mean, I'm confident will

3 be repaid. So I don't see how that's a loan is

4 assigned to me at some point.

5 Q. Well, there is a relationship between

6 the 2,500 Bitcoin loan to CloudHashing and the 45

7 Bitcoin for Amir's defense?

8 A. I mean, at this point he doesn't have

9 access to the 2500, and he, otherwise, would have,

10 so I'm making it available to him.

11 Q. Let's talk a little bit about the 400

12 Bitcoin that was also expended as part of

13 CloudHashing. So, you are down another 400

14 Bitcoin in connection with that; is that right?

15 A. Sorry. So, the 400 is effectively --

16 Amir can't access the 2500 because CloudHashing,

17 which became Pure Nova refused to pay, and then I

18 had to enforce this agreement, and I worked there.

19 I was the one trying to fix it and I felt

20 responsible for him not being able to access this.

21 Q. I understand that, Mr. Strateman, but is

22 it correct to say that insofar as the wallet is

23 concerned, you are reduced by a full sum of 2,900

24 Bitcoin as a result of these transactions with Mr.

25 Taaki?

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1 A. Yes, there is 2,945 less Bitcoin in the

2 wallet.

3 Q. And, Mr. Strateman, at your deposition

4 -- and you did state that one of the reasons you

5 gave him the 2,500 Bitcoin was because you

6 considered him a friend; is that correct?

7 A. Yes.

8 Q. And this additional 445 Bitcoin that

9 we're discussing, did you give it to Mr. Taaki for

10 the same reason?

11 A. I guess I felt guilty that he couldn't

12 access the 2500 that I had already given him

13 because of bad advice that I had given him

14 effectively. This was something that -- I was the

15 one who had gotten him involved with this, like,

16 loaning money to CloudHashing thing, and then I'm

17 working there. So, it's not an additional

18 payment, but I am out 400 Bitcoin. So, I'm trying

19 to explain it as best I can.

20 Q. Mr. Strateman, with respect to this 445

21 Bitcoin, that was -- this was also gifted to Amir;

22 is that correct?

23 A. It's in lieu of the 2500.

24 Q. Which was a gift?

25 A. That he didn't have access, which was a

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1 gift.

2 Q. Why didn't you bring this up in your

3 deposition?

4 A. I didn't remember. It wasn't really

5 relevant because it was offsetting against the

6 2500, so it's not like it's an additional gift.

7 It's just part of settling the CloudHashing

8 lawsuit.

9 Q. It's not an additional gift, you were

10 just down another 445 Bitcoin; is that right?

11 A. At this point Pure Nova owing Bitcoin to

12 me because there was a loan assigned. I'm not

13 sure exactly -- there is an assignment. So I'm

14 not sure what the dates are on those but...

15 Q. Mr. Strateman, you were deposed twice in

16 this matter; is that right?

17 A. Yes.

18 Q. In your first deposition you remembered

19 how I asked you about your 2,500 gift to Amir

20 Taaki; do you remember that?

21 A. I don't remember specifically, but I

22 remember you asking.

23 Q. Do you remember if you brought up

24 CloudHashing in that first deposition?

25 A. I don't remember.

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1 Q. Do you remember discussing CloudHashing

2 in your second deposition -- let me take a step

3 back. You were deposed in mid-2019 by me; is that

4 correct?

5 A. I believe you were the one that took it.

6 I'm not sure.

7 Q. You were deposed in 2012; is that

8 correct?

9 A. Again, I will trust you on the dates.

10 Q. And do you remember discussing

11 CloudHashing in your second deposition?

12 A. I don't remember if you asked.

13 Q. Do you remember discussing the 2,500

14 Bitcoin to Mr. Taaki in your second deposition?

15 A. At some point in deposition I remember

16 discussing it.

17 Q. So you have been deposed twice on gifts

18 to Amir Taaki, and this is the first time we're

19 hearing about this 445 Bitcoin transaction; is

20 that correct?

21 A. Yes. I didn't remember it. It wasn't

22 an additional gift. It was as part of recovering

23 2500 from Pure Nova.

24 Q. Mr. Strateman, are there any other gifts

25 to Mr. Taaki that you have not disclosed to either

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1 us in discovery or in these proceedings today?

2 A. No, I don't think so. Um -- I have sent

3 Amir, I think, about 10 Bitcoin that was part of

4 the 2500.