Mon. Feb 18th, 2019

Freeze Ends on Charlie Shrem’s Assets in Winklevoss Lawsuit

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Nov 9 – Judge Jed Rakoff has ended the freeze on Charlie Shrem’s assets which was brought upon by a lawsuit by the Winklevoss brothers.

In a case unsealed in the U.S. District Court for the Southern District of New York earlier this month, the Winklevoss twins allege that Shrem took part of their $250,000 investment in his exchange BitInstant to buy 5,000 bitcoins (BTC).

The Winklevoss brothers allege that Shrem used the bitcoins to build a lavish lifestyle after serving a year in prison for helping users of the now-defunct Silk Road marketplace.

 

“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,” the New York Times quotes the lawsuit as claiming.

 

Shrem purportedly argues that he never owned the bitcoins, and that they are the property of an unnamed industry member.

Shrem’s lawyer, Brian Klein, said that the allegations that Shrem used ill-gotten Bitcoin to purchase cars and houses had “no basis in fact or law.” Bloomberg quotes Klein as saying that the recent ruling on Shrem’s assets is a first step toward his client’s “complete vindication.” A trial has reportedly been scheduled for June 17, 2019.

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