The Winklevoss twins absolutely love a reason to sue someone, and in their latest adventure into the courtroom they have chosen to target Charlie Shrem. Back in 2012, the Winklevoss Twins capital management firm invested $1.5 million into Shrem’s BitInstant crypto exchange which eventually went up in smoke – along with the cryptos held on the platform.
As well as investing in his platform, the Crypto Twins hired Shrem to amass a huge stockpile of cryptos for them, which Shrem allegedly went on to steal. However, in the latest twist of events, the courts have sided with Shrem and unfrozen his assets until the battle hits the courtroom floor in mid-2019.
$60,000 Went Missing
The whole argument started when Shrem turned up $60,000 short in 2012. This sum equated to around 5,000 BTC, which were valued at roughly $12.50 each. For years the Winklevoss twins decided to let it slide and just remain angry at Shrem, but now the value of those 5,000 BTC is around the $30 million mark and the Twins want their Bitcoin back.
High Value Purchases Angering the Twins
Shrem has always denied stealing the 5,000 BTC from the twins, but a recent flurry of extravagant purchases has triggered the Crypto Twins. Shrem recently bought a $2 million house, a power boat, luxury cars, and a huge parcel of land. The news of these purchases quickly spread and the Twins – armed with their lawyers – sprang into action. They allege that Shrem is finally cashing in the stolen Bitcoins to fund latest new shopping spree.
Shrem Lawyering Up
Shrem is adamant that this money he used doesn’t belong to the Crypto Twins. In fact, Shrem’s legal team contacted almost 30 different institutions to investigate his finances and these searches turned up saying he has just $10 to his name – other than his new assets. This played into the Twins’ favor due to the fact this sudden explosion of wealth doesn’t make sense. However, in his current role he is given a $50,000 per month stipend for his services, which he has been accumulating and has finally decided to spend.
Courts Taking Shrem’s Side
All of Shrem’s assets had been frozen as soon as the Twins filed their lawsuit against Shrem, but the court’s decision to favor Shrem means that he can finally drive his new cars. It marks a huge win for Shrem and it means he is finally one step closer to total freedom. The Winklevoss twins have a long history of suing people, and it’s how they amassed most of their fortune in the beginning. This likely isn’t the last we will hear about this legal battle, but it’s looking good for Shrem.
Could Gemini Need a Cash Injection?
The Winklevoss twins hardly need any more money, and they now have their own crypto exchange. Gemini recently launched one of the world’s first government approved stablecoins in a process that makes adding new trading pairs very tough. This new law suit from the Twins could indicate that the exchange needs a cash injection to help it fund its expansion plans. The Winklevoss twins have ambitious plans for Gemini, and no doubt these plans require copious amounts of funding to succeed.
While Shrem’s latest scandal won’t enter the crypto scam hall of fame, it has certainly caused some controversy. If Shrem manages to win the final court battle next year it will go down as a huge win and will definitely dent the Twins’ pride.