Early Win for Shrem: Judge Unfreezes Assets in Winklevoss Lawsuit

Early Win for Shrem: Judge Unfreezes Assets in Winklevoss Lawsuit 1

In a short-term win for bitcoin advocate Charlie Shrem, a federal judge has lifted the freeze on Shrem’s financial accounts in an ongoing legal battle against the Winklevoss twins.

Shrem’s financial accounts and assets were temporarily frozen via an attachment order following the suit’s initial filing. The order allowed the U.S. Marshall for the Southern District to freeze Shrem’s assets, instructing cryptocurrency companies like Coinbase and Xapo and legacy financial institutions to freeze Shrem’s assets up to $30 million, the amount the Winklevosses are seeking in damages.

However, following a hearing on Thursday, November 8, 2019, presiding Judge Jed S. Rakoff issued a court order lifting the freeze. 

“After careful consideration, the Court denies plaintiff’s motion to confirm the order of attachment and therefore lifts the attachment currently in place effective immediately,” the order reads.

The document concludes by saying that an opinion will be issued “in due course” explaining why a freeze was unnecessary for the initial proceedings to continue.

Earlier this month, Tyler and Cameron Winklevoss of the Gemini Exchange in New York filed a suit against Charlie Shrem for 5,000 BTC after Shrem reportedly made several high-value purchases following his release from prison.

Shrem has claimed he went to prison penniless, reportedly working as a dishwasher for several months after his release before returning to the bitcoin space. Shrem’s self-reported poverty has lead the community to question where he dug up the funds for his luxury shopping spree.

The Winklevosses believe that these purchases were made with bitcoin Shrem stole from the twins when they hired him to manage their initial cryptocurrency investments in 2012.

The working relationship was troubled when Shrem allegedly mismanaged roughly $60,000 of bitcoin. At the time, bitcoin was worth approximately $12.50, so the $60,000 would be equal to about 5,000 BTC. The twins say they’ve hired a private investigator who states that, in 2013, the missing bitcoins were traced to several wallet addresses owned by Shrem before being redirected to other accounts.

Shrem’s lawyer Brian Klein asserts that the Winklevoss twins’ claims are baseless, and he’s confident in Shrem’s innocence. In a recently filed motion of defense, Klein writes:

“Plaintiff Winklevoss Capital Fund, LLC’s (“WCF’s”) prejudgment attachment and underlying lawsuit are predicated and built on the demonstrably false premise that defendant Charlie Shrem (“Shrem”) misappropriated $61,000 of WCF’s money in 2012, purchased 5,000 bitcoins with those funds, moved those bitcoins around on December 31, 2012 (and subsequently), and then years later after his release from prison went on a spending spree with them, but WCF’s case collapses on itself because those 5,000 bitcoins were not owned by Shrem. The scandalous and fantastical story WCF is advancing is nonsense.”

The document explains that the 5,000 BTC in question were owned by a separate party, who for privacy purposes, Klein refers to as “Mr. X.” It further states that Mr. X is “identified in email communications between him and Shrem (and others)” discussing the 5,000 bitcoins. Copies of the emails were filed with the motion that allegedly suggest Mr. X transferred the coins to a cold storage wallet account in Shrem’s name on December 31, 2012.

The document goes on to say, “This lawsuit and application for prejudgment attachment can only be characterized as an ambush money-grab designed to cripple Shrem financially.” It further explains that the Winklevoss twins have failed to provide any substantial evidence showing that Shrem attempted to defraud them purposely.

While the judge has freed up Shrem’s funds, the case is ongoing, and it will have an official trial by jury on April 8, 2019.

About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

Related Posts

E-Crypto News Executive Interviews

Automated trading with HaasBot Crypto Trading Bots

Crypto Scams

Millions in Cryptocurrency Stolen by Scammers in the Last Month According to Tenable Research
November 24, 2021
Behind The Scenes: How this Crypto Community Responded to + $50m Hack
October 18, 2021
Crypto Scams
Crypto Scams Still Persistent In 2021, SEC Warns About Red Flags To Watch
September 9, 2021
Poly Network
Here’s How Hackers Stole Over $600 million in the Poly Network Attack
August 12, 2021
The World’s Most Infamous Crypto Hacks and Scams
July 31, 2021

Blockchain/Cryptocurrency Questions and Answers

Crypto casinos
How Does Bitcoin Casino Work + 2021 Beginner’s Guide
November 8, 2021
How to Buy and Sell Cryptocurrency
November 8, 2021
What Are Bitcoin Futures And How Will They Work In 2022?
November 4, 2021
The Unconventional Guide to Ethereum
October 28, 2021
ICo Presale
The Science Behind ICO Presales…
October 14, 2021

CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin54,778 0.74 % 0.30 % 6.30 %
Ethereum4,120.4 0.93 % 0.45 % 4.57 %
Binance Coin606.11 0.89 % 2.60 % 3.73 %
Tether0.9986 0.03 % 0.08 % 0.23 %
Solana197.00 1.10 % 0.80 % 8.73 %
Cardano1.570 0.69 % 0.05 % 16.41 %
XRP0.9540 0.31 % 0.11 % 12.58 %
USD Coin1.000 0.14 % 0.20 % 0.17 %
Polkadot30.87 2.19 % 17.29 % 10.73 %
Dogecoin0.2215 0.68 % 1.42 % 7.23 %

Bitcoin (BTC) $ 54,857.00
Ethereum (ETH) $ 4,130.07
Binance Coin (BNB) $ 607.36
Tether (USDT) $ 0.998851
Solana (SOL) $ 196.93
Cardano (ADA) $ 1.57
XRP (XRP) $ 0.954239
USD Coin (USDC) $ 0.998422
Polkadot (DOT) $ 35.49
Dogecoin (DOGE) $ 0.20692