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Charlie Shrem, whom the Winklevoss twins described as their mentor when they were just starting out with cryptocurrency, was sued for fraud last year by Tyler and Cameroon Winklevoss.
According to them, Shrem defrauded them of 5,000 Bitcoins in a deal they entered in 2012. The twins explained that they learned about Bitcoin from their supposed mentor, Shrem. So, when they decided to try it out, they entrusted a huge sum to him. The money was supposed to be used to purchase Bitcoins for the Winklevoss twins. But alas, the deal did not go as planned. They alleged that Mr. Shrem came back with a story, not the Bitcoins. After several altercations, Mr. Shrem gave them some part of the Bitcoins demanded, withholding about 5,000 Bitcoins. The twins suspected some monkey business in play, so they made Mr. Shrem sign an agreement that he owes them 5,000 Bitcoins.
Fast forward six years later (precisely, November 2018), the Winklevoss twins were certain that the misappropriation that happened in 2012 was, in fact, a well-organized scheme to defraud them of their hard-earned cash. They reached this conclusion after the rumor of Mr. Shrem spending heavily on cars and real estate just a few months after leaving prison for a Bitcoin-related fraud.
During an interview after he left prison, Mr. Shrem stated that he has nothing left on him and that he regrets all his past (wrong)doings and ready to turn a new leaf. Not long after that, news had it that Mr. Shrem was spending millions of dollars on cars and real estate. This caused the twins to believe that the 5,000 Bitcoins he had declared missing in 2012 was not missing after all. They believed his new-found wealth came from selling the Bitcoins in his possession. Banking on their guts, they filed a lawsuit against Mr. Shrem and the case has been on since then.
In Mr. Shrem’s defense, he got his ‘new-found’ wealth from a couple of ventures and businesses he got into after his jail term. The story didn’t settle well with the judge. He had to confiscate Mr. Shrem’s properties until he is proven innocent of the charges. Recent news from the case shows that Mr. Shrem made it out of the lawsuit with all of his properties intact and the charges cannot be refiled again.
This conclusion was reached following the dismissal of the case due to prejudice. Apparently, the Winklevoss twins were made to pay Mr. Shrem $45,000 in court fees and his assets were unfreeze too. Both parties agreed to pay their individual cost as part of the agreement.
Speaking with Modern Consensus on the matter, Mr. Shrem asserted that he knew from the onset that the allegations are bogus; he explained that they reached a confidential resolution and that he is dismissed from the case.
Well, he got lucky after all. What do you think?