Charlie Shrem Denies Owning The Stolen Bitcoins That Winklevosses Are Claiming For

by | Nov 8, 2018 | Bitcoin, Cryptocurrency, Cryptocurrency News

Charlie Shrem | Bitcoin | Winklevosses

The Winklevoss twins recently published a court filing that accuses early bitcoin entrepreneur Charlie Shrem of stealing 5,000 bitcoin. Resisting against the allegations Shrem call the accusation “dead wrong,” in a document filed Monday with the U.S. District Court for the Southern District of New York.

Following the initial filing by from Tyler and Cameron Winklevoss, the court froze certain assets of Shrem. In the document, Sherm also challenged this as a prejudgement motion against him. While the case was filed in September, it remained under seal until October.

The Winklevoss brothers sued Shrem, that they paid the alleged $1 million to purchase bitcoin on their behalf in September 2012 and Shrem failed to deliver those 5,000 coins. Reportedly, Shrem kept the $32 million worth of bitcoin, according to the bitcoin price at the time of writing, for himself.

Shrem fights back

In Monday’s filing, Shrem states that the 5,000 bitcoin in his wallet belongs to someone else, whom he has assisted. He also added that at no point, had access to the bitcoin. A separate affidavit by Shrem states that he helped the aforementioned individual (whose name was redacted) to transfer 5,000 bitcoin into a cold storage wallet in 2012 and that he “never moved those bitcoins again.”

Claiming that he did not have access to the coins afterward and that he “never personally owned the 5,000 bitcoins discussed above, nor have I ever personally owned 5,000 bitcoins all at one time.” Addressing the part of the Winklevoss brothers’ complaint stating he spent bitcoin to purchase new cars, boats and a $2 million property, Shrem added:

“After I was released from prison, I had a net worth of less than $100,000 and worked for approximately six months at a restaurant in Pennsylvania. Since working at the restaurant, I have worked a variety of jobs that have allowed me to accumulate funds and to restore myself financially.”

Shrem also attached a pair of printouts of transactions as logged by Blockchain, to support his claim. The documents log that 5,000 bitcoin were moved twice on Dec. 31, 2012, once into and later out of Shrem’s wallet. Some emails are also presented that explains these transactions.

He states that in addition, he has already paid part of the $950,000 he owes federal authorities as part of his 2014 guilty plea deal for running an unlicensed money-transmitting business. Arguing the prejudgement freezing of some of his assets, Shrem claims that Winklevoss Capital Fund, the entity named in the plaintiffs’ side of the lawsuit, fails to prove either that the overall suit would succeed or that Shrem actively sought to defraud the plaintiffs.

The opposition motion: Opposition to motion to confirm prejudgement attachment order by CoinDesk on Scribd

Shrem’s affidavit: Charlie Shrem affidavit by CoinDesk on Scribd

Read more: Winklevoss Twins Launches A New Stable Coin “Gemini Dollar” Pegged To US


Arshmeet Hora

The idea of expressing one’s views and reviews through words is beyond intriguing. What started as a creative let out has now become a passion and a profession for Arshmeet K Hora. In her own words ” with every word, every article that I write, my passion towards this medium has grown stronger.”  Arshmeet covers latest crypto news and updates as well as what happening new revolving around Blockchain Technology.

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