Hexbyte – Tech News – Ars Technica | Winklevoss twins claim famed crypto evangelist stole 5,000 bitcoins from them

Hexbyte – Tech News – Ars Technica |

Financial fracas —

Charlie Shrem, who served time for illicit bitcoin deal, accused of 2012 theft.


(L-R) Nathaniel Popper and Charlie Shrem attend Tribeca Talks: After The Movie: <em>The Rise and Rise of Bitcoin</em> during the 2014 Tribeca Film Festival at the SVA Theater on April 23, 2014, in New York City.” src=”https://cdn.arstechnica.net/wp-content/uploads/2018/11/GettyImages-486317685-800×533.jpg”></img><figcaption>
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(L-R) Nathaniel Popper and Charlie Shrem attend Tribeca Talks: After The Movie:

The Rise and Rise of Bitcoin

during the 2014 Tribeca Film Festival at the SVA Theater on April 23, 2014, in New York City.

Two of the world’s most famous bitcoin investors,

the Winklevoss twins

, have now sued a longtime figure in the world of bitcoin,

Charlie Shrem

.

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

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