Before filing the lawsuit, the Gemini founders hired a private investigator to look into Shrem’s out-of-prison lifestyle
Back in 2012, Shrem, the convicted felon was entrusted $750,000 by the twins to purchase BTC for them. At that time the price of BTC was $12.50. Conflict began when Shrem returned merely $189,000 of the promised $250,000 for the first payment.
Private Investigation on Shrem’s Lifestyle
During the past year, Shrem attracted the attention of the Winklevoss twins when the twins noticed he purchased an approximate $4.5 million worth of properties, 2 boats, and 2 Maserati cars. The twins hired a private investigator to probe into the matter.
The investigation established that Shrem has, or had, a sum of 5,000 BTC (worth an estimated $31.8 million) kept in two wallets. The BTC in the wallet is said to be what is owed to the Winklevoss twins.
A New York judge, the same judge who accepted Shrem’s 2015 guilty plea, has ordered the two wallets frozen.
Charlie Shrem: Past Conviction and Present Endeavor
In 2015, Charlie Shrem spent a year in prison after being convicted of money laundering in connection to the operation of the online black market, Silk Road. The now-defunct BitInstant, a crypto exchange he founded, was used to process Silk Road user payments.
After US authorities considered Silk Road illegal, Shrem pleaded guilty of aiding and abetting unauthorized money transfers related to Silk Road.
On June 26, he was released from prison on parole and, according to him, worked as a dishwasher with a few BTC which he does not keep as he says he does not ‘speculate his rent’.
Today, aside from his latest brush with the law, Shrem is said to have a pet project called Crypto.IQ. This project serves as an information hub specifically for cryptocurrency traders.