This denial comes after news agency AP reported on Thursday that Dorian Nakamoto - whose birth name was Satoshi Nakamoto - had rebutted claims that he had anything to do with bitcoin. However, he did acknowledge that many of the details in Newsweek's report were correct.
On Friday, the magazine issued a statement strongly defending the story and the work of its writer, Leah McGrath-Goodman.
"Ms. Goodman's reporting was motivated by a search for the truth surrounding a major business story, absent any other agenda," Newsweek said in a post on its website. "The facts as reported point toward Mr. Nakamoto's role in the founding of bitcoin."
(Read more: Japanese native denies being bitcoin founder)
Reporters camped outside Dorian Nakamoto's house on Thursday before Nakamoto appeared from his two-story home in the early afternoon. Speaking to reporters on his doorstep he said that he was not involved in bitcoin and opted to travel with a reporter from the AP for a "free lunch".
"I'm not involved in bitcoin. Wait a minute, I want my free lunch first. I'm going with this guy," Nakamoto said pointing to the reporter, according to Reuters.
The media followed Nakamoto as he travelled by car to a nearby sushi restaurant, before leaving and heading downtown. Los Angeles Times reporter Joe Bel Bruno followed the pair and described the incident as a "bitcoin chase" in a running stream of tweets.
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"OK Nakamoto is in a Prius. He could really drive for days without filling up. This could last forever," he said in one of his tweets.
Satoshi Nakamoto has caused much debate in the bitcoin community since releasing his white paper on the virtual currency back in 2009. His software protocol was the foundations for the cryptocurrency that is used worldwide today. Bitcoin has received international attention in recent years with the price soaring over $1,000 in November. It's a "virtual" currency that allows users to exchange online credits for goods and services. While there is no central bank that issues them, bitcoins can be created online by using a computer to complete difficult tasks, a process known as mining.
(Read more: Japan to regulate and tax Bitcoin trades: Nikkei)