U.S. Judge Sides With Charlie Shrem In Winklevoss Lawsuit

Nov 09, 2018 at 21:00

Judge Jed Rakoff has lifted the freeze order on Charlie Shrem’s assets, favoring him over an accusation the Winklevoss brothers took to court.

According to a Bloomberg report, the Court for the Southern District of New York said earlier this month, the Winklevoss twins alleged that Shrem pocketed a portion of their $250,000 investment in his exchange BitInstant.

The sum was allegedly used for the purchase of 5,000 Bitcoins (BTC).

Shrem flatly denied the accusation, pointing to an unnamed industry member instead of himself as the owner.

The Winklevosses’ lawyer Tyler Meade argued that the freeze order on Shrem’s assets should be maintained, adding that the former CEO had $12 million in cryptocurrencies, real estate holdings, and other assets.

While Meade said the information was collated from data of 30 institutions, these have only reported an accumulative $10 in assets.

Shrem’s lawyer, Brian Klein, said the allegations had “no basis in fact or law.”

Klein is hopeful that the move will lead to “complete vindication.” A trial is slated for June 17, 2019.