Winklevoss Twins To Pay $45k To Charlie Shrem: Court Ruling

Feb 8, 2019 at 15:00 Update Date :Feb 8, 2019 at 15:00 UTC

Cameron and Tyler Winklevoss, founders of the New York based Gemini Bitcoin exchange, have been ordered to pay back wrongly accused Charlie Shrem, an entrepreneur, $45,000 in legal fees for taking him to court over allegedly failing to broker cryptocurrency purchases promised to them.

With Judge Jed S.Rakoff presiding over the ruling in the U.S. District Court of the Southern District of New York on Feb.7, the order stated that Shrem should be reimbursed for a previous court ruling that gave accusers power to seize hold of around $30 million of his assets.

Another order, said to be the initial ruling by the court, was rolled back in November last year, which led to Shrem filing a motion to recover fees and arbitrary costs that went into his legal proceedings.

Winklevoss Capital lawyers also argued that Shrem should not be allowed to recover the funds, which he had entitled as costs, since the only amount he had to pay was totalling to less than $5.

This notion, however, was rejected by the court, which found no reason to invalidate Shrem’s claim, although the damages sought by him should be reduced by 40 percent, said the judge after going over Shrem’s charges.

This lawsuit is another one of the high profile cases where two or more cryptocurrency market investors, who had been former partners, have accused each other of wrongdoing and ended up in court.

BitInstant, Shrem’s first startup, which doubled up as a cryptocurrency exchange, had the backing of Winklevoss Capital, until it’s shutdown in 2013. It’s CEO, Charlie Shrem, was found to be in violation of money laundering schemes, which led to him being sent to prison to serve out a one year sentence.

For now, further proceedings in the ongoing lawsuit are set to be presided over in June this year.

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