The lawyer for early Bitcoin capitalist Charlie Shrem has replied to the accusation thrown by the Winklevoss twins saying his client stole 5,000 BTC from the brothers in 2012.
Shrem rebuts the allegation stressing that he cannot have stolen the Bitcoin since it never belonged to the Winklevosses in the first place.
According to a court document released on November 7, Shem belies using the stolen money from the Winklevoss Capital Fund (WCF) to purchase 5,000 BTC for the twins in December 2012.
On September 11, Cameron and Tyler Winklevoss filed the original complaint accusing Shrem had spent their $61,000 to buy Bitcoin and was now living a luxurious lifestyle because of the profits from 2017’s bull market. Shrem became aware of the accusations only on October 26, prompting a belated response from his legal team.
Brian E. Klein, Shrem’s lawyer, states that the 5,000 BTC cited in the Winklevosses’ original complaint never belonged to the brothers. Instead, it belongs to Shrem’s anonymous contact, which has been referred to as “Mr X” in the court for privacy reasons.
Klein says that Mr X, who is a “prominent Bitcoin industry member,” sent out an email to numerous people in the Bitcoin community in December 2012 requesting assistance in putting an enormous amount of Bitcoin into cold storage. According to Klein, his client has agreed to help. The lawyer states that Shrem sent one of the addresses cited in the Winklevoss complaint (1Shremdh9tVop1gxMzJ7baHxp6XX2WWRW) for Mr X to send the 5,000 BTC to.
Klein tells that Mr X has agreed to transfer the Bitcoin to Shrem’s wallet on December 31 deciding to meet up to be able to set up the cold storage. The lawyer adds that the two executed the final transfer of funds to Mr X’s wallet at a later date, from Shem’s very office.
The original Winklevoss complaint has also cited the receiving wallet (1MQ3K9aPcEDCekpFBGyDAgtD1uPss8E7rY). On the other hand, Klein claims that Shrem never had control of Mr X’s wallet private key and therefore “never owned 5,000 all at one time,” which made them wonder as to where the Winklevosses got their idea.
However, the document fails to specify what has come about of the $61,000 that Shrem supposedly owes the brothers. It merely explains the origin of the 5,000 BTC cited in the original complaint.
Klein now demands the New York District Court to award legal fees to his client, saying:
“Shrem engaged in no wrongdoing. Period… The Court should also exercise its supervisory powers and dismiss the entire case at this time in light of its false premise and the unfair, significant disruption it has caused to Shrem’s life.”