Winklevoss Twins Sue Charlie Shrem Over $32 Million in Stolen Bitcoin

TechCrunch / Flickr

Cameron and Tyler Winklevoss, the founders of Gemini Trust, are reportedly suing Charlie Shrem, who notably went to prison for his role in the online black market, Silk Road, for $32 million in stolen Bitcoin (BTC).

According to a recent report by the New York Times, the Winklevoss brothers went into business with Shrem back in 2012 when they gave $250,000 to purchase Bitcoin on their behalf. However, according to the lawsuit, Shrem only gave back around $189,000 worth of Bitcoin when it was priced around $12.50.

It is believed that 5,000 BTC in total was stolen, which is currently valued at $32 million and hit nearly $100 million in December of 2017 during the last bull run.

“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,” reads the lawsuit.

The twins told the Times that they decided to pursue the lawsuit after observing his spending habits. They then hired an investigator who discovered that the 5,000 Bitcoins were transferred in 2013 through Mr. Shrem’s wallets onto wallets associated with Xapo and Coinbase.

judge in the Federal District Court for the Southern District of New York then agreed to order a freeze on those accounts after the twins submitted their claim.

Shrem reportedly denies the allegations, with his lawyer stating that the claims “could not be further from the truth” and that he will happily clear his name in court.

Similar: Icelandic Bitcoin Mining Hardware Thief Escapes From Prison
Photo: TechCrunch / Flickr

Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.

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