Legal

Charlie Shrem and Winklevoss Capital Fund privately settle bitcoin lawsuit

April 17, 2019, 4:57PM EDT

The Winklevoss lawsuit against Charlie Shrem for allegedly taking $61,000 to buy 5,000 bitcoin in 2012 has resulted in a private settlement, according to a court filing.

While the filing states either party can move to reopen the case within 30 days if the settlement isn't fully effectuated, the parties' respective counsels have filed notices that state the intention not to reopen the case, with Winkelvoss Capital Fund and Shrem each bearing their own attorney fees and costs.

Shrem, one of the earliest adopters of bitcoin, started one of the first prominent bitcoin businesses in the U.S., Bitinstant. In order to “court an investment” in his business, Winklevoss Capital alleges Shrem promised to buy $750,000 in bitcoin for the fund “at the best price” and for no commission or transaction fee. Per the complaint, Winklevoss Capital found an address linked to Shrem they say received 5,000 bitcoin, which the Plaintiff also alleges is consistent with their allegation that Shrem stole $61,000 to buy 5,000 bitcoin for himself. 

Attorney Stephen Palley, a partner at Anderson Kill and a contributor for The Block said, "For a case that began with some big noise by the plaintiffs this sure ended with a whimper. This was a case that began with the plaintiffs trying to freeze and seize Shrem's assets before he even knew that he had been sued."

"It went from there to worse for the plaintiff's lawyers, who saw that ruling overturned and ended up being sanctioned for deposition misconduct. Any way you slice it, this is a big win for Charlie Shrem and his very talented defense lawyer, Brian Klein," Palley added.

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