Charlie Shrem denies the demands of 5,000 Bitcoin thefts, claiming the real owner was "Mr. X"


The battle between Charlie Shrem and the Winklevoss brothers continues. In this case, the Winklevosses accused Shrem of "stealing" 5,000 bitcoins in 2012, after obtaining unsatisfactory returns. At the time they had not taken any action, but the recent large purchases that Shrem advertised led them to believe they had kept their Bitcoin.

As Shrem and the lawyer Brian E. Klein solved the accusation, Klein recently formally replied on November 5th, saying that his client has "committed no misconduct". In his filing, he added,

"Shrem can demonstrate with verifiable evidence that he has not taken the 5,000 bitcoins (the Winklevosses) who accuse him of taking." Instead, Klein says the funds actually belong to a "Mr. X," and even went so far as to call the cause "absurdity".

Part of the case involves an intense look at the history of the past six years, starting with the initial contribution that the Winklevoss brothers made of $ 250,000. The loan was designed to help the couple get involved with Bitcoin. They claim that they are missing $ 61,000 of their funds and that instead Shrem has decided to use it in its own wealth. It is not surprising that now they want the 5,000 Bitcoins, considering that they would rather have more than $ 32 million. In 2013, when the brothers suspected something suspicious was happening, Cameron wrote an e-mail to Shrem, saying, "I've been patient, and at this point it's becoming a bit absurd. […] I do not take it lightly. "

Shrem went to jail on unrelated charges in 2015 when he claimed he had absolutely no money. He pleaded guilty to knowingly selling cryptocurrency, despite knowing that buyers intended to use it in a dark web market to buy drugs. Once off, he acquired some lavish purchases, although he said he was working just like a dishwasher with a pair of BTCs under his belt. However, he said he did not take account of the cryptocurrency, because he could not "speculate with" [his] rent. "

However, as the lawsuit against him reads,

"O Shrem has been incredibly lucky and successful since he got out of prison, or – more likely – he's acquired his six properties, two Maserati, two motorboats and other estates with appreciated value of the 5,000 Bitcoins he stole ".

When Cameron Winklevoss spoke with the New York Times, he commented that the purchase led him and his brother to realize that it was time to dig.

The Winklevoss twins decided to hire a private investigator who could track down a bitcoin wallet connected to Shrem. The transaction took place at about the same time as the funds were lost, although Shrem ended up moving most of these coins into Coinbase and Xapo. The twins now believe that their 5,000 Bitcoins have been responsible for the purchase of real estate and other luxury goods of millions of dollars.

The judge on the case, who happened to chair when Shrem got in trouble three years ago, agreed to freeze the funds that Shrem holds both in Coinbase and Xapo. The judge, Jed S. Rakoff, noted in his official order that Shrem "has highlighted an intent to frustrate the collection efforts of its creditors".

If the case continues on the track in which it was activated, it seems likely that the Winklevoss twins will win the case. Meanwhile, Klein continues to be aggressive in his work to raise Shrem from the cause. Speaking with the New York Times, Klein said,

"The lawsuit wrongly claims that about six years ago Charlie has substantially unduly stolen thousands of Bitcoins […] Nothing could be further from the truth. Charlie intends to defend himself with force and quickly erase his name. "

So far, despite CoinTelegraph's requests, Shrem has not provided any further statements. To view the complete deposit for this case, visit

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