Judge Ends Freeze on Charlie Shrem’s Assets in Winklevoss Lawsuit


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                In the most recent development in a case brought to court by the Winklevoss twins, a judge has ruled to end a freeze on the defendant’s assets.
                <p dir="ltr">Judge Jed Rakoff has ruled to end the freeze on Charlie Shrem&rsquo;s assets in a lawsuit brought against him by the <a href="https://cointelegraph.com/tags/winklevoss-twins">Winklevoss</a> brothers, Bloomberg <a href="https://www.bloomberg.com/news/articles/2018-11-08/winklevoss-s-foe-wins-lifting-of-asset-freeze-in-bitcoin-battle?srnd=markets-vp" rel="nofollow,noopener" target="_blank">reports</a> Nov. 8.</p><p dir="ltr">In a case unsealed in the <a href="https://cointelegraph.com/tags/usa">U.S.</a> District Court for the Southern District of <a href="https://cointelegraph.com/tags/new-york">New York</a> earlier this month, the Winklevoss twins allege that Shrem took part of their $250,000 investment in his exchange BitInstant to buy 5,000 bitcoins (<a href="https://cointelegraph.com/bitcoin-price-index">BTC</a>).</p><p dir="ltr">The Winklevosses argue that Shrem used the Bitcoin he acquired with their money to furnish a lavish lifestyle after having <a href="https://cointelegraph.com/news/how-a-bitcoin-mogul-helps-charlie-shrem-speak-freely-from-prison">served a year in prison</a> for helping users of the now-defunct <a href="https://cointelegraph.com/tags/silk-road">Silk Road</a> marketplace make illegal purchases.</p><p dir="ltr">&ldquo;Either Shrem has been incredibly lucky and successful since leaving prison, or &mdash; more likely &mdash; he &lsquo;acquired&rsquo; his six properties, two Maseratis, two powerboats and other holdings with the appreciated value of the 5,000 Bitcoin he stole,&rdquo; the New York Times <a href="https://cointelegraph.com/news/winklevoss-lawsuit-claims-charlie-shrem-stole-5000-btc-in-2012-shrems-lawyer-denies">quotes</a> the lawsuit as claiming.</p><p dir="ltr">Shrem purportedly argues that he never owned the bitcoins, and that they are the property of an unnamed industry member.</p><p dir="ltr">According to Bloomberg, the Winklevoss&rsquo; lawyer Tyler Meade argued that the freeze on Shrem&rsquo;s assets should continue, claiming that he possessed $12 million dollars in <a href="https://cointelegraph.com/tags/cryptocurrencies">cryptocurrencies</a>, <a href="https://cointelegraph.com/tags/real-estate">real estate</a> holdings, and other assets.</p><p dir="ltr">While Meade reportedly said that the brothers&rsquo; lawyers have sought information on Shrem&rsquo;s holdings from over 30 institutions, they have only identified a paltry $10 in assets at this time. Per the report, the parties agreed that Shrem could spend up to $50,000 on monthly expenses.</p><p dir="ltr">Shrem&rsquo;s lawyer, Brian Klein, said that the allegations that Shrem used ill-gotten Bitcoin to purchase cars and houses had &ldquo;no basis in fact or law.&rdquo; Bloomberg quotes Klein as saying that the recent ruling on Shrem&rsquo;s assets is a first step toward his client&rsquo;s &ldquo;complete vindication.&rdquo; A trial has reportedly been scheduled for June 17, 2019.

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