Earlier this month, the NY Times reported that the crypto-famous Winklevoss twins have accused Bitcoin Foundation founder Charlie Shrem of Bitcoin fraud. The Winklevoss lawsuit has now turned into a heated battle between both parties.
According to the report by the NT Times, Shrem made several lavish purchases in 2018, that caught the attention of the Olympian twins. The pair filed a civil lawsuit against Shrem accusing him of stealing thousands of Bitcoin from them in 2012.
“Either Shrem has been incredibly lucky and successful since leaving prison, or—more likely—he ‘acquired’ his six properties, two Maseratis, two powerboats and other holdings with the appreciated value of the 5,000 Bitcoin he stole from” the Winklevoss twins in 2012, the lawsuit states.
The lawsuit claims the Winklevoss twins worked with Shrem on a previous project before he served one year in jail for purchasing drugs with Bitcoin. The filing claims that Shrem stole 5000 Bitcoins from the twins in 2012, that were worth $13 at the time. Now, the coins are valued at around $32 million.
>> Startups Urgently Need to Adapt to a Changing Market as Token Sales Drop 90 Percent
Lawyer Defends Shrem
“Shrem can show by verifiable evidence that he did not take the 5,000 bitcoins [the Winklevosses] accuse him of taking,” the filing reads.
The lawsuit against Shrem spans over six years, and the result was a falling out over a deal to help the Winklevosses accrue digital currency. This September, the same judge that charged Shrem with his previous proceedings agreed to partially freeze his assets amid accusations by the Winklevosses. Shrem then failed to pay $1 million in restitution to the state as part of the plea deal.
Klein, Shrem’s lawyer, states this is incorrect and claims:
“The true facts are that Shrem paid a portion of the money owed before he knew of the [Winklevosses’] complaint, and is in the process of paying the rest.”
Klein also denies the idea that Shrem has used the 5,000 Bitcoins in question to purchase all of his new assets.
Featured Image: Depositphotos/© AndreyPopov