Tuesday, August 20, 2019

Twins Bitcoin Billionaires Sue Crypto Pioneer, Charlie Shrem

The twins billionaires, Cameron and Tyler Winklevoss, are popularly known as, the “first bitcoin billionaires”. In 2014, they were in a legal battle against Facebook for ownership and recently, they have filed a lawsuit against the 28-year-old bitcoin investor and founder of Bitinstant, Charlie Shrem.

It is believed that the twins wealth in cryptocurrency is as a result of their $11 million investment into bitcoin in 2013, which was valued at $120 per coin. The capital used for this investment was part of the $65 million they had received in 2008 as a settlement in their lawsuit against Facebook.

Shrem, on the other hand, may be described as, “the first Bitcoin felon,” after doing time in a Federal prison. In 2014, he was jailed for selling Bitcoins to people who had the intention of buying illegal drugs with it from the Crypto forum, Sail Road. Two years after his release, Shrem was able to acquire multiple real estate properties, a $2 million house in Florida, Maseratis and powerboats.

Admittedly, the lawsuit stems from Shrem’s purchases and affluent lifestyle over the past year. According to the Harvard University-educated brothers, Shrem who was once their business partner in 2012, stole 5,000 bitcoins from them which were worth $60,000 ($12.50 each). As at today, that amount of bitcoins is valued at around $31 million.

A part of the court report stated that,

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.

Based on these allegations, the US District Court Judge Jed S. Rakoff has granted the twin’s request to freeze Shrem’s digital assets which are held on Xapo and Coinbase crypto exchanges. These exchanges are believed to hold part of the bitcoins that was stolen from the twins years ago.

Related Article:  Five Men Arrested For Planning One Million Dollars Bitcoin Break-In

Brian Kien, who is Shrem’s lawyer, said that the allegations made by the brothers could be far from the truth and that Shrem will soon be proven innocent in court. He also said that the twins have erroneously made the allegations and that he was ready to defend his client in court vigorously.

The twins private Investigator believes that the transactions for the stolen coins are traceable on a public ledger. This is because the bitcoins were sent to Bitcoin addresses which Shrem had access to before they were later moved into other wallets. Therefore, the details of such transfers could be found on the Blockchain.

This may not be the only problem Mr Shrem will have to deal with since there is an affidavit filed in the court which states that he currently owes the government $950,000 in restitution, which he agreed to pay in 2014, as part of his plea bargain.

More Articles

Twitter To Enable Users Send & Receive Bitcoin Tips...

Soon, Twitter users will be able to send and receive Bitcoin tips over the lightning network. The latter is the effort of Tippin, a platform...

Technical Analysis: BTCUSD $6000 Could be in the picture

If Bitcoin can't manage to hold this major support around $9300, it may travel down to the next significant level of support with is...

Partido Popular Proposes to Explore Blockchain in Spain’s...

The ruling Spanish political party, Partido Popular (PP), have proposed a bill to utilize and explore blockchain technology to improve transparency and traceability in...

Iran’s Official Believes Blockchain Technology Can Improve the National...

Alireza Daliri, Iran's deputy for management and investment at the Directorate for Scientific and Technological Affairs has made suggestions. The deputy believes that Blockchain Technology...

High Credit Card Surcharges Are Changing Customers Thoughts About...

The rising costs of transaction fees and surcharges that are being slowly introduced into conventional and popular payment platforms such as Visa and MasterCard are...

U.K. Authorities Arrest Man for Stealing IOTA Cryptocurrencies Worth...

The European Union Agency for Law Enforcement Cooperation also known as Europol announced on January 23 that a suspect who allegedly stole €10 Million worth of...

Bitmain Changes CEO after Failed IPO Attempt

Bitmain’s long filed Initial Public Offering (IPO) listing attempt to the Stock Exchange of Hong Kong (SEHK) has finally expired, but the...

Consent Token: Blockchain application built for your privacy

Blockchain as much as it holds bright promises for the future, has a big problem – it still fails to attract a common user....

Brian Kelly Says That Bitcoin Is Now A Serious...

Today, Brian Kelly, the founder, and CEO of the BKCM LLC, a company that centers in offering cryptocurrency related investment options, stated that this...

Weiss Ratings Rates Best And Worst Cryptos To Invest

Weiss Cryptocurrency Ratings has posted its new list of the best coins to invest in and the ones that you need to avoid in...

Next Week On ICOs: Auctus, Omnitude and ORCA

Out of all the ICOs coming out, three in caught our attention for next week: Auctus: A decentralized retirement portfolio program. Currently Raised 958.9...

Latest Articles

Why Some Financial Bubbles Are Necessary Economic Disasters

The history of the worldwide economy is punctuated by financial bubbles. They happen more often than we think.  Fortunly’s infographic below provides a comprehensive...

Why US-based people can’t bet with bitcoins at online...

Online gambling using bitcoin has been happening since the time when cryptocurrency came into being. In the initial days, gamblers used to opt for...

Couple Pays For Breakfast Using Bitcoin, Community Finds This...

A Reddit user by the username u/portageco recently made a post in bitcoin's official subreddit. In his post, u/portageco boasts about how he paid...

Australian Woman Leads Adoption, Tours 10 Countries Spending Cryptocurrencies

Who says you can't go around the world spending cryptocurrencies? As many believe, cryptocurrencies are only good for speculations. But with a little research,...

Did A Physical Bitcoin Just Sell For $99k On...

As at the time of reporting, the listing on eBay had closed. This could be because the seller got a buyer or he decided...

Litecoin Now Approved In 30,000+ Stores

As cryptocurrencies gain ground, more and more technology-based firms find ways to incorporate the nascent technology into everyday life. Moon, prior to this time,...

How To Shop on Amazon with Bitcoin – Step-By-Step...

Wondered how to shop on Amazon with bitcoin? Then here's how you can purchase goods on one of the largest e-commerce websites that ships...

How To Buy Bitcoin On Coinbase – Step-By-Step Guide

Buy Bitcoin on Coinbase instantly in the U.S., UK, Canada, or anywhere you are globally. Coinbase cryptocurrency exchange has enabled its customers buy the...

Grayscale Bitcoin Trust Boosts By 300%, Affects Oil &...

The institutional investment product, Grayscale Bitcoin Trust (GBTC), experienced a growth of more than 300% due to its outstanding performance since February, Forbes reports....

How To Create A Coinbase Account – Step-By-Step Guide

Create a Coinbase account with ease. Use this illustrative guide to create a Coinbase account for buying, selling, and storing cryptocurrencies. And you know...

$9.2 Trillion Transferred Using Bitcoins In 2.5 Years

Against present belief that bitcoin is only used for speculation, James McDowall, a crypto investor and advisor shared a metric about Bitcoin that's been...

Malware Posing as Movie File Manipulates Results and Steals...

A new form of malware posing as movie file was discovered last year and was designed to steal cryptocurrency and inject manipulated results into...