Winklevoss twins have long occupied a prominent place in cryptocurrency space. Their most notable contribution was the launch of the Gemini Exchange and the creation of the Gemini Dollar (GUSD) steak.
Now the twins accuse Charlie Schrem, with whom they began their relationship with cryptocurrency, stealing 5000 bitcoins. According to sources, the two asked Shrem to acquire assets for them back in 2012, and he has not yet returned them as reported by the New York Times.
This accusation for Shrem is not the first in connection with cryptocurrency. Known as the “first offender”, Shrem went to prison in 2014 for helping people convert their funds to Bitcoin to buy drugs.
During a recent interview, Shrem shared that he went to prison, with little money in his bank account. However, despite statements, last year the community witnessed the purchase of a property of millions of dollars along with two Mageratti and some motorboats. Although Shrem was once the CEO of BitInstant, the early-bound Bitcoin business in the US, he had no millions of dollars to scatter.
Gemini Winklevoss know of his lack of funds, therefore, but have filed a lawsuit against him. One part of the accusation reads:
“Either Shrem was incredibly lucky and successful after getting out of prison, or rather he purchased his six apartments, two Maserati, two motor boats and another property with an estimated value of 5000 bitcoins he stole.”
The judge associated with the earlier accusations of Shrem agreed to freeze some of his funds. Perhaps the story hides more interesting facts. According to the judicial affidavit, Shrem also did not pay a government fine of USD 950 000 after his arrest in 2014.
Lawyer Shrem, Brian Klien, claims that the charges are completely false:
“The lawsuit incorrectly alleges that about six years ago, Charlie essentially illegally appropriated thousands of bitcoins. There is nothing farther from the truth. Charlie plans to defend vigorously and soon clear his name. ”
Despite these accusations, Shrem showed through several interviews and even podcasts that he wanted to go the honest way. The former offender said that he worked as a dishwasher after leaving prison and refused to provide his e-mails during this period.
In 2012, the brothers provided Shrem $750 000 to buy bitcoins from other investors. However, only a couple of months after the conclusion of the partnership, the shadow entrepreneur returned not all the funds.
In a 2013 email from Cameron Winklevoss to Schrem, “I was patient, and at this point, it’s getting a little absurd. I don’t take it lightly. “At the time of this letter Bitcoin cost only 12.50 USD, and the price has increased since then, considering that now Bitcoin is $6.351.
The twins also have a claim to Shrem regarding their investment in BitInstant. The company closed in 2013, and two of them did not allow their former partner to do anything. Since then, there have been no contacts between them.
According to the hired investigator, Shrem handed 5000 bitcoins through Xapo and Coinbase back in 2013. This data was found in the blockchain system, which allows anyone to track transactions to the first source.
Recently, Shrem took part in the project Crypto.IQ, a group that wants to provide information about the market Bitcoin traders. However, these lawsuits are likely to cause problems for his new venture. Judge Jed S. Rakoff, who froze Shrem’s funds after the charges, argues that the entrepreneur “has demonstrated his intention to disrupt the fundraising efforts of his creditors.”