Lenn Sasaman and the Satoshi mystery: the crypto community remains skeptical

The question of the true identity of Bitcoin’s creator continues to intrigue the cryptography community. Following the release of HBO’s documentary “Money Electric: The Bitcoin Mystery,” a new wave of discussions has emerged about the possible involvement of American cryptographer Lena Sassaman in creating BTC. A survey conducted among crypto community users showed quite mixed results.

Social poll reveals true positions of the crypto community

When BeInCrypto’s editorial asked its audience about the possible connection between Lena Sassaman and Satoshi Nakamoto, the responses were distributed as follows: only 17% fully agree with the hypothesis that Sassaman could be the creator of Bitcoin. An additional 9% lean toward this version but have some doubts.

The skeptics are significantly more numerous. 12% of respondents doubt it but still consider this version unlikely. The majority of those who expressed an opinion—almost a quarter of respondents (24%)—completely reject the idea that Lena Sassaman was the author of Bitcoin. The remaining 38% are uncertain and prefer to wait for the film’s release.

The survey was conducted in October 2024 on the Telegram platform in the BeInCrypto channel, allowing for the collection of opinions from active members of the crypto community.

A story that created a legend

To understand the origins of this hypothesis, we need to look back to events in 2011. Lena Sassaman, a high-level American cryptographer and active participant in the cyberpunk movement, took her own life. In the same year, Satoshi Nakamoto disappeared from public view after actively interacting with early Bitcoin developers. The coincidence of these two events fueled numerous theories.

Proponents of the hypothesis often cite Sassaman’s professional background. He worked on privacy protection systems, participated in the cyberpunk community since the 1990s, and maintained contacts with industry figures, including Hall Finney, one of the earliest Bitcoin developers.

Eight arguments dismantling the Sassaman theory

However, each of these points has convincing counterarguments. First, Sassaman’s involvement in the cyberpunk community does not make him a unique candidate. In the 1990s and early 2000s, many cryptographers were interested in privacy issues.

Participation in developing anonymous email systems like Mixmaster also cannot serve as proof of involvement in creating Bitcoin. These technologies existed before Bitcoin’s appearance, and other specialists could have developed similar ideas.

Sassaman’s connection with Hall Finney is often exaggerated. Yes, they knew each other and collaborated, but this does not confirm that one was the creator of Bitcoin. Finney himself actively participated in Bitcoin’s development, and if Sassaman had been Satoshi, it would be highly unlikely that Finney wouldn’t have known directly.

Research by Sassaman in security and his discoveries related to vulnerabilities in X.509 certificates indicate his high competence in cryptography but are in no way connected to Bitcoin’s development. Many experts have made similar discoveries.

A humorous anecdote is the marriage proposal from Meredith Patterson at the CodeCon conference, which Sassaman organized together with BitTorrent’s creator—this may speak to his charisma but has nothing to do with Bitcoin authorship. Moreover, Satoshi Nakamoto always sought to avoid attention and maintained strict anonymity.

Mentions of Sassaman in block 138725 of the blockchain are often considered an encrypted message. In reality, it was simply a tribute to colleagues who acknowledged Lena’s contribution to the cryptographic community after his death.

The coincidence of Satoshi’s disappearance timing and Lena Sassaman’s death may be just that—a coincidence. Nakamoto could have ceased contact with the community for other reasons, such as simply not wanting to participate further in the project.

Finally, the use of 24 words in Sassaman’s farewell note is a common coincidence. The 24-word seed phrase format for wallets was standardized much later, and it is unlikely Sassaman would have used it as an encrypted hint of involvement with Bitcoin.

Official denial and additional facts

Lena Sassaman’s widow, Meredith Patterson, officially denied all rumors linking her husband to Bitcoin’s creation. In an interview, she stated that HBO’s filmmakers did not even attempt to contact her for comments. Moreover, Sassaman was a dedicated Mac user, whereas Bitcoin was developed on Linux. This difference in preferences adds another argument against the hypothesis.

The market of assumptions: how focus is shifting

The crypto community actively bets on Polymarket, a prediction platform. The total pool of investments in various theories about Satoshi’s identity has approached $15 million. Initially, Lena Sassaman was the leading candidate, but the situation has changed dramatically.

A new analytical report from 10x Research shifted the community’s attention to another candidate—Nick Szabo, a well-known cryptographer and researcher. The analysts provided additional evidence supporting his involvement in Bitcoin, leading to a significant influx of bets favoring this version.

However, even with new data, no one has yet definitively confirmed Satoshi Nakamoto’s identity. The mystery of the creator of the first cryptocurrency by market cap remains unsolved, and the case of Lena Sassaman serves as a good illustration of how difficult it is to separate facts from assumptions in Bitcoin’s history.