Cryptocurrency News

Winklevoss Twins Instructed to Pay Back Charlie Shrem’s $45,000

Winklevoss Twins Instructed to Pay Bac

The Winklevoss Twins and Charlie Shrem lawsuit has taken a new angle. The proceedings are being held at the District Court of United States located in the Southern District of New York. Judge Jed S. Rakoff commanded Cameron and Tyler Winklevoss to repay $45,000 to Charlie Shrem that the latter had spent in the legal fee.

The law forum stated during the proceeding-

“plaintiff is liable ‘for all costs and damages, including reasonable attorneys’ fees’ where the plaintiff is granted an attachment and later found unentitled to that attachment.”

As per the court’s verdict published on 16th April 2019, the legal dispute between Winklevoss brothers and Shrem has been closed. The decision was in favor of Charlie, and he was proved innocent.

The Winklevoss twins run Gemini Trust Company, LLC which is a digital currency exchange and enables its users to buy, sell, and store digital assets. Gemini is a New York-based crypto firm that is regulated by the New York State Department of Financial Services.

Charlie Shrem is an American entrepreneur and bitcoin advocate. He is a founding partner of Bitcoin foundation. BitInstant, a company formed by Shrem received $1.5 million from a group of investors led by Winklevoss Capital Management in the fall of 2012.

The twins sued Shrem, and the former was blamed for embezzling 5000 Bitcoin (BTC) tokens (estimated to be $ 26 million at present) from Winklevoss twins. The two brothers claimed that Charlie had spent the Bitcoins for his advantage and had obtained all the fancy objects.

Shrem was appointed as their first crypto advisor. The twins initially gave him $750,000 for purchasing Bitcoin (BTC) on behalf of the firm then Charlie Shrem receives $ 250,000 for the same task. However, the Gemini founders noticed that their advisor, Shrem did not deliver the Bitcoin (BTC). Furthermore, they realized that an additional 5000 Bitcoins (BTC) were missing. And the twins were unsuccessful in recovering the same.

During the proceedings, the Winklevii demanded that the court should confiscate Shrem’s $30 million worth properties. And at that time the court agreed to freeze his assets. However, Judge Jed Rakoff withdrew the freeze of assets. Following which Shrem filed a petition to redeem his spendings on legal fees. The next proceeding will be held on 17th June 2019.


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