Hexbyte – Tech News – Ars Technica |
Two of the world’s most famous bitcoin investors,
, have now sued a longtime figure in the world of bitcoin,
Shrem was released from prison in 2016 after he was convicted for aiding and abetting an unlicensed money-transfer business—sending $1 million in bitcoins that ended up on the notorious drug website, Silk Road.
According to the new lawsuit—which was filed in federal court in Manhattan in September 2018 and only recently unsealed—Winklevoss Capital Fund (WCF) hired Shrem in late 2012 to purchase bitcoins on its behalf.
However, WCF alleges that, of the $250,000 sent to Shrem in the fall of 2012 for this purpose, only $189,000 was accounted for. The company now claims that Shrem pocketed the difference ($61,000) to “purchase 5,000 bitcoin for himself.”
The investment firm is asking for the 5,000 bitcoins back, which at present exchange rates would be worth over $31.3 million. The case was first reported by The New York Times on Friday.
Cameron Winklevoss noticed this error within months and emailed Shrem on February 19, 2013, to provide a fully accurate accounting of how he had spent their money:
“I have been patient and at this point it’s getting a bit absurd,” he wrote. “I will have no choice but to take measures to get this done if you don’t start giving me a firm