Winklewoss brothers accuses Charlie Shrem of stealing Bitcoins worth $32m

winklewoss brother Suing Charlie Shrem
winklevoss brother

Charlie Shrem
is living life, King size! In the industry he's often named as "Bitcoin's first felon" and he's apparantly a big spender. In this year alone he has bought 6 properties, 2 powerboat and 2 mesaraties. If thats not enough it is rumoured that he might have gotten a cameo in the music video of Black Eyed Peas.

It's quite an amazing lifestyle to have especially considering he has been a convicted felon who is just released after serving time for money laundering. Now even adding to his problems are Mr Cameron and Tyler Winklewoss are on to him. Going through the lawsuit we get to know that the winklewoss brothers are accusing Mr Charlie of spending bitcoin worth $32m which was owed to them since 2012 to fund Mr Shrem's lavish lifestyle.

Mr Shrem is used to rugg-off with the law. In the year 2014, He was sentenced to two years in prison for using Bitinstant, which is a former cryptocurrency exchange which he co-founded, which was used to funnel bitcoin to shady actor who was seeking to buy drugs from internet biggest black market (at that time) the Silk Road.

It is also known that he apparently assisted Robert Faiella, who was a plumber in Florida who was operating BTCKing online. He reportedly transferred $1m worth of Bitcoin to the Silk road in 2012. Though at the very early stage of this bitcoin advocate came clean in the Silk Road affair - pleading guilty to aiding and abetting an unlicensed money transmitting business , this time he is planning to stand his ground in this case. But this time he may be running out of luck.

The Twin brothers were reportedly worth a whooping of $1bn in 2017. And majority of that wealth was created after capitalizing on the Facebook payout(they recieved a total compensation of $65m). And they invested $11m of that money in Bitcoin, which they bought at that time at the price of $120 in 2013.

Mr Shrem who was advising the twin brothers is accused of stealing 5000 bitcoin. Mr Shrem's lawyer Mr Brain Klein, is saying that there are not enough proof to support this claim.

"The lawsuit erroneously alleges that about six years ago Charlie essentially misappropriated thousands of Bitcoin" said Mr Brain Klein. "Nothing could be further from the truth", Brain continued.

In september 2012, the winklewoss brothers gave Mr Shrem $250k to invest in BTC which was trading at that point of time at $12.50. And about few weeks later, Mr Shrem returned $189kworth of BTC to the twin brothers.

And it is found that BTC was trading at that time at $12.50, meaning around 5k BTC had gone missing. Also Mr Shrem has failed to account for the BTC when confronted by the brothers, who were forced to launch an investigation into their missing assets. Twin brothers hired a personal investigator tracking the blockchain, and they found a ledger over which cryptocurrency payments were made, 5k BTC were found to have been moved in by Shrem's associated account on the digital currency wallet platforms Coinbase and Xapo in the year 2013.

"When he purchased $4m in real estate, two Mesaratis, and two power boat, we decided it was time to get to the bottom of this", told Mr Cameron Winklevoss to The New York Times.

A judge in a federal-court in the state of New York has approved a request by the creditor for Mr Shrem's funds to be held across Xapo and Coinbase to be remain Frozen.

No comments:

Post a Comment

Post Top Ad

Your Ad Spot