Home News Bitcoin Charlie Shrem Sued for ‘Stealing’ 5000 Bitcoins from Winklevoss Twins in 2012

Charlie Shrem Sued for ‘Stealing’ 5000 Bitcoins from Winklevoss Twins in 2012

November 08, 2018 12:42
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Source: Bitcoin Exchange Guide

Charlie Shrem, who is an early bitcoin adopter and is the founder of the Bitcoin Foundation (according to his Twitter handle) is currently battling a lawsuit against the Winklevoss twins over an overdue payment of 5000 Bitcoin.

On Monday, in a document which was filed with the U.S. District Court for the Southern District of New York, the bitcoin entrepreneur called the twins’ charges of him stealing 5000 bitcoin as “dead wrong” and argued against the prejudgement motion of freezing some of his assets.

Although the Winklevoss brothers sued Shrem in September, the matter was under a seal until October this year when the documents were made public. According to a report by news portal CoinDesk, the twins claimed that while they paid him $1 million to purchase bitcoin on their behalf in September 2012, he failed to deliver 5,000 coins, instead keeping them for himself. At press time, they would be worth approximately $32 million.

In a separate affidavit, he stated that he helped this individual (whose name was redacted, with a note stating that an unredacted version remains under seal) transfer 5,000 bitcoin into a cold storage wallet in 2012. The claims are supported by an email chain which includes eminent names such as Erik Voorhees, Roger Ver and Ira Miller. The individual in his email had stated, “Btw, are you guys in the office tomorrow? I could use some help with creating a “cold” wallet.” Over the course of the email chain, the individual whose identity is redacted asks if they should send across some funds and that the individual didn’t mind having a BitInstant address. To which Shrem asks how much and the sender responds “5000”.

Shrem goes on to add in his affidavit, “never moved those bitcoin again.” He was quoted to have been saying, “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.”

We reached out to Charlie Shrem for some clarifications. We will update the story, once he responds.

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