Cameron and Tyler Winklevoss have been ordered to pay back $45,000 in legal fees incurred by entrepreneur Charlie Shrem as part of an ongoing lawsuit that alleges he failed to broker a series of promised cryptocurrency purchases on their behalf. This is the latest in the lengthy legal proceedings between the former business partners.
The Winklevoss twins had instigated an investigation and asset freeze on Shrem after a fallout over money owed from a years-old Bitcoin trade deal. Shrem allegedly did not return 5000 Bitcoin owed to the twins.
In the order, filed in the U.S. District Court of the Southern District of New York on Thursday, Judge Jed S. Rakoff ruled Shrem should be reimbursed for a prior court ruling that gave the plaintiffs the ability to seize up to $30 million worth of his assets.
Lawyers for Winklevoss Capital had attempted to argue Shrem should not recoup the funds for his costs, as he was only charged a “de minimis amount” of less than $5. The court, however, rejected the idea and the judge found the requested damages should be reduced by 40 percent on reviewing the charges.
Shrem Claims To Have Created His Money From Old-Fashioned Hard Work
“We are glad that the judge ruled for Charlie and ordered WCF to reimburse him for legal fees he incurred in overturning WCF’s approximately $30 million attachment order,” said Brian Klein, partner at Baker Marquart LLP. “This is another big step towards his full vindication”.
Tyler Meade, the twins’ lawyer, argued that Shrem has profited from the bitcoin stolen from them. “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 5000 Bitcoin he stole from the Winklevoss twins in 2012”.Shrem countered the accusation by saying that he built up his money through good old-fashioned hard work while he was imprisoned for violating anti-money laundering rules. He was convicted because he “willfully” neglected to report unlawful transactions that were conducted through BitIstant by Silk Road user, Robert Faiella.
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