The Winklevoss twins are suing the founder of BitInstant’s Charlie Shrem. They are alleging that he stole 5,000 BTC from them in 2012.
There were a number of expensive purchases by Shrem during 2018 that made the twins sit up and take notice. They are filing a civil suit since they are adamant that the purchases were made possible by the stolen Bitcoin funds. In fact, some of the items Shrem bought include luxury cars and a $2 million house.
Shrem had Full Access
Shrem was working for the twins in 2012 at the time of the theft. His role was to create a stockpile of cryptocurrency. Therefore, he was given access to large sums of money to purchase Bitcoin. However, at that time, Bitcoin was only approximately $12.
There was $60,000 in Bitcoin that never made it onto the books and there is no way to account for it. Since it was $12 per token at the time, this would mean that there are about 5,000 Bitcoins missing. At today’s prices, this is worth about $30 million. This is why the twins are making such a big issue of it. This dispute with Shrem has been ongoing for some years now.
The Winklevoss twins are well-known in the crypto space. They are prominent investors in the tech space and they made a lot of money through Bitcoin. Their wealth is over the $1 billion mark. Additionally, they own their own crypto exchange, Gemini, that is a key player in the crypto space.
What happens next?
However, Shrem is actively opposing these allegations. One of the members of his legal team says: “Winklevoss Capital Fund has brought an utterly baseless civil lawsuit against Charlie Shrem. The lawsuit erroneously alleges that about six years ago Charlie essentially misappropriated thousands of bitcoins. Nothing could be further from the truth. Charlie plans to vigorously defend himself and quickly clear his name.”
This is not the first time that Shrem is facing legal issues. He was in prison for two years following his arrest in 2014. This was for “operating an unlicensed money transmitting business, money laundering conspiracy and willfully failing to file suspicious activity reports with banking authorities.”
At the end of the day, the blockchain will provide the information to resolve the matter.
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