Winklevosses and Shrem, Early Bitcoiners, Settle Old Score

The Winklevoss twins have reached a settlement with Charlie Shrem in the case they brought against him last November claiming he stole $61 000 USD of their funds and used them to buy 5000 Bitcoins in 2012.

While details of the settlement are not publicly available, the relevant dismissal document allows for the reopening of the case, “if the settlement is not fully effectuated,” within 30 days.

Charlie Shrem and a partner from England started Bitinstant in 2011 as a service that would allow Bitcoin investors to expeditiously load cash into their Bitcoin exchange accounts.

At the time, this was an otherwise frustratingly slow process accomplished mainly through bank wire transfers, and Bitinstant took off.

But due mainly to incompetence, Bitinstant eventually failed, and in 2014, Shrem was arrested and accused of using Bitinstant to aid and personally conduct drug transactions on Silk Road, a Dark Net illicit marketplace.

By then, the Winklevoss twins had already invested in Shrem’s venture.

Shrem eventually spent a year in jail and was released in 2016.

Since then he has popped up as an advisor to various cryptocurrency projects and has been making appearances at relevant conferences.

Although The New York Times has claimed Shrem stated in a recent interview that he went to prison in 2015 with almost no money, the Winklevoss twins embarked on their action against Shrem by requesting an immediate freeze on Shrem’s assets, including 2 Maseratis, two power boats and a $2 million home in Florida along with other pieces of real estate.

They also alleged in the filing that Shrem had still not paid $950 000 USD he was ordered to pay the US government as part of his conviction.

Shrem’s lawyer, Brian Klein, responded to the Winklevoss filing by stating that their claims are false:

“The lawsuit erroneously alleges that about six years ago Charlie essentially misappropriated thousands of Bitcoins. Nothing could be further from the truth. Charlie plans to vigorously defend himself and quickly clear his name.”

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