Report - Bitcoin creator found living hermit's life in California

Satoshi Nakamoto, the developer credited with inventing bitcoin, is alive, well and living a hermit's life in California, according to Newsweek.

Satoshi Nakamoto, the developer credited with inventing the open-source software that eventually became bitcoin , is -and isn't - who everyone thought he was.

Yet contrary to media reports that Nakamoto was a pseudonym for a 20-something wunderkind, the real deal is actually a 64-year old son of a Buddhist priest who has not used his birth name in more than four decades, Newsweek said.

The Japanese native is described as moody and secretive by family and associates, and has a career steeped in work for corporations and the military.

Arthur Nakamoto, the bitcoin creator's brother, told Newsweek that the developer was a brilliant man who had worked "on classified stuff," yet used a vulgar term to describe his personality.

(Read more: Japan to regulate and tax Bitcoin trades: Nikkei )

The magazine pieced together a series of clues leading to Nakamoto, who currently lives a "humble life" in Temple City, in the San Gabriel Valley east of Los Angeles. He is rumored to own around 4 percent of the cryptocurrency, which is worth hundreds of millions of dollars on paper.

The virtual currency has become wildly popular among enthusiasts skeptical of paper money. Still, bitcoin has become more controversial in the wake of the high-profile bankruptcy of Mt.Gox, and widening concerns that it is vulnerable to theft, fraud or illicit use.

(Read more: Another bitcoin site bites the dust )

For more from Newsweek on this story, please click here.

-By CNBC's Javier E. David. Follow him on Twitter @TeflonGeek.

image: © the_tahoe_guy

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