5,000 BTC Missing, and Other Details of the Winklevii vs. Shrem Case

On November 2, details of a crypto lawsuit featuring major industry players: Bitcoin Foundation founder Charlie Shrem on one side, and the Winklevoss twins on the other, were made public.

The case alleges that Shrem "Stole" around 5,000 Bitcoin from Tyler and Cameron Winklevoss in 2012.Brief introduction to both sides of the conflict.

The details of the lawsuit, which were reported by the NYT on November 2, suggest that Shrem "Helped get the brothers interested in Bitcoin in 2012 and became their first adviser in the young industry."

More specifically, the Winklevoss twins allegedly gave Shrem $750,000 to buy BTC for them "From other deep-pocketed investors."

Thus, while Winklevoss gave Shrem $250,000 in September 2012, he delivered back only around $189,000 worth of BTC at the going price, which was around $12.50, according to court documents.

After asking Shrem "Numerous times" for an accounting of the BTC he had purchased for them, the Winklevii eventually turned to an accountant who documented the missing funds, the lawsuit details suggest.

"Either Shrem has been incredibly lucky and successful since leaving prison, or - more likely - he 'acquired' his six properties, two Maseratis, two powerboats and other holdings with the appreciated value of the 5,000 Bitcoin he stole from" the twins during their business agreement in 2012, the case brought to court claims.

Judge has already accommodated some of Winklevoss' demands, Shrem "Plans to quickly clear his name".

According to the NYT article, Judge Rakoff has already approved the Winklevoss brothers' application to freeze any funds that Shrem holds with Xapo and Coinbase, as he supposedly held the assets on those wallet services.

For now the court fight seems to be in favor of the Winklevoss twins, who seem determined to see Shrem prosecuted again.