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Court Decides In Favor Of Accused By Winklevoss Brothers

19:16 09/11/2018

Judge Jed Rakoff decided to terminate the freezing of Charles Shrem's accounts during a lawsuit initiated by the Winklevosses, as reported by Bloomberg.

Famous crypto investors Tyler and Cameron Winklevoss filed a lawsuit against Charlie Shrem, former director of the BitInstant crypto exchange, claiming he did not return 5,000 BTC from the $250,000 deal, which took place in 2012.

In October 2018, the court decided to block the assets of the defendant, who found out about the lawsuit not immediately.

Charlie Shrem, who was arrested and imprisoned in 2014 for helping people to buy drugs with cryptocurrencies on the darknet, appealed to Judge Jed Rakoff with a request to close the case and stated that he had never been a bitcoin owner.

Tyler Meade, the lawyer of Winklevoss brothers, insisted on the continuation of the hearing, stressing that Shrem has recently acquired a two million dollar house in Florida and, besides, is the owner of real estate, cryptocurrency, and other funds totaling $12 million. Defense of the twins requested information in 30 institutions, but only $10 was found on the accounts of the accused.

“We do not have to show that he is actually hiding assets, although we believe he is”, Meade stated. The parties defined $50,000 as a monthly amount for Shrem's living. Meanwhile, 5,000 BTC today is more than $32 million.

Shrem’s lawyer Brian Klein emphasized that the court’s decision would be an important step towards fully justifying his defendant. The next trial is scheduled for June 17, 2019.

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