Charlie Shrem Denies Owning BTC Stolen from the Winklevosses

Charlie Shrem, one of the earliest entrepreneurs in BTC, is fighting back against the Winklevoss twins. He denied the claim set forth against him that he stole an amount of 5,000 BTC from the Winklevoss brothers, as per a recent court document.


In the document, which was filed recently with the United States District Court of NY’s Southern District, Shrem refers to the accusations as dead wrong. He opposed as well the prejudgement motion that was filed to freeze part of his funds.

The lawsuit was first filed against Shrem by the Winklevoss twins back in September, but it stayed sealed until October. In it, the brothers claimed that they had paid Shrem an amount of $1 million to buy BTC for them back in September 2012. They are accusing him of failing to deliver a total of 5,000 BTC and acquiring them for himself. The valued amount of these cryptos today is around $32 million.

The Coins Belonged to Someone Else

Shrem stated in the filing that the 5,000 BTC that were in the wallet associated with him actually belonged to an individual he was assisting at the time. He insists that he had no access to the coins. In another court document, Shrem explained how he was helping the individual, whose name remains sealed, transfer the 5,000 BTC into a wallet for cold storage in 2012. He noted that he never transferred those BTC again or even had access to them after that. Shrem emphasized that he hasn’t ever personally owned the aforementioned BTC. He further stated that he never owned that much BTC at one time.

He referred in the statement to the twins’ complaint that he bought boats, cars, and a property worth $2 million with the BTCs he took from them. Shrem said that upon his release from prison, his net worth was less than $100,000. He noted that he worked several jobs after that, including one in a Pennsylvania restaurant, which allowed him to build his funds again.

Shrem Has Proof to Support His Claims

In an attempt to stand by his claims, he shared printouts of the transactions that took place on December 31, 2012, from the blockchain log. It shows that an amount of 5,000 BTC had been moved two times on that date, into the wallet and then again out of it. He also submitted emails into evidence that explain the transactions.

Shrem addressed the issue of his debt to the federal authorities for his 2014 plea deal, which was for running a business for money transfers without a license. He mentioned that he had paid a part of the total amount of $950,000. When resisting the prejudgment  and hoping to free a part of his assets, he said that the opposed entity fails to provide any evidence that the lawsuit will succeed or that he defrauded the Winklevosses.

1 year ago

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