Shrem Wins First Leg of Winklevoss Case as Judge Lifts the Freeze on Charlie’s Crypto Assets

Charlie Shrem, a recognized and popular early Bitcoin supporter has registered a victory in an ongoing lawsuit brought against him by the Winklevoss brothers. Judge Jed Rakoff has ruled to end the freeze on the assets of Charlie Shrem. The information was released by Bloomberg on November 8.

According to the Winklevoss brothers, Shrem has been using BTC that he acquired with their money and spend it on different luxury items such as cars or mansions. He served a year in prison after being accused of helping users of the Silk Road marketplace to purchase illegal items.

The Winklevoss brothers alleged that Mr Shrem used $250,000 dollars of their investment in his exchange in order to buy 5,000 BTC.

The New York Times quoted the lawsuit as claiming:

“Either Shrem has been incredibly lucky and successful since leaving prison, or – more likely – he acquired his six properties, two Maseratis, two powerboats and other holdings with the appreciated value of the 5,000 Bitcoin he stole.”

As per a court document that was filed back on Thursday by federal Judge Jed Rakoff, a $30 million attachment that was granted against Shrem was lifted. The decision was taken after a hearing that occurred earlier that day.

However, this is not the end of this issue. On April 8, 2019, the case will proceed to a jury trial, according to a separate filing. The parties have until November 15 to amend any pleadings and file the questions that they may have.

Shrem was sued by the Winklevoss Capital Fund back in September. According to it, he withheld 5,000 Bitcoin he was supposed to purchase on behalf of the Winklevoss brothers. Brian Klein, Shrem’s lawyer, explained that the allegations about Shrem using illegal Bitcoin to purchase goods has ‘noo basis in fact or law.’

It is important to mention hat a new trial has been scheduled for June 17, 2019.

Publication date: 
11/09/2018 - 17:33