Winklevoss twins claim the famous crypto vigilist stole 5,000 bitcoins from them
Two of the world's most famous bitcoin investors, the Winklevoss twins, have now sued a long-standing figure in the world of bitcoin, Charlie Shrem.
Shrem was released from prison in 201[ads1]6 after being sentenced to help and maintain an unlicensed money transfer business – send $ 1 million in bitcoins that ended up on the infamous fabric website, Silk Road.
According to the new lawsuit – filed at the federal court in Manhattan in September 2018 and only recently unsealed-Winklevoss Capital Fund (WCF), Shrem hired at the end of 2012 to purchase bitcoins on behalf of it.
However, WCF claims that $ 250,000 sent to Shrem in the fall of 2012 for this purpose, only $ 189,000 was paid. The company now claims that Shrem smelt the difference ($ 61,000) to "buy 5,000 bitcoins for itself."
The investment company asks for the 5,000 bitcoins back, as at present exchange rates would be worth over $ 31.3 million. The case was first reported by The New York Times on Friday.
Cameron Winklevoss noticed this error within months and sent Shrem on February 19th, 2013 to give a complete accurate account of how he used his money:
"I have been patient and at this point it becomes a little absurd, "he wrote. "I have no choice but to take action to get this done if you do not start to give me a firm answer when to complete this work."
It is not clear why Winklevoss waited over five years later to bring a lawsuit.
In any case, referring to block-chain analysis, the WCF in the lawsuit said the analysis could definitely show that Shrem soon took the 5,000 bit coins and transferred them to a vanity card address containing the string "1Shrem."
Another law filing notes that:
Shrem has been on a steadily increasing purchase bonus since July last year, paying $ 4 million in real estate in and around Sarasota, Florida, ii) two Maseratis, and two powerboats. Most of these assets were acquired over the past six months, including a $ 2.25 million property purchased July 27, 2018; a property of $ 370,000 purchased June 19, 2018; two properties worth a total of $ 825,000 in March 2018; and a Maserati in July 2018.
Shrem did not respond to Ar's request for comment. His lawyer, Brian Klein, refused to respond to Ars's question.
"The case claims the mistake that Charlie misunderstood thousands of bitcoins about six years ago," Klein E-mail Ars said. "Nothing can be further from the truth. Charlie plans to defend himself and quickly cope with his name."
Klein, a well-known criminal defense attorney, also represents Marcus Hutchins (aka MalwareTech), currently punished in Wisconsin.
