BitInstant’s Former CEO Calls Winklevoss Capital Fund Lawsuit ‘Scandalous’, Urges for Dismissal

BitInstant’s Former CEO Calls a Lawsuit By The Winklevoss Capital Fund ‘Scandalous’, Urges U.S. Judge to Dismiss It

Charles Shrem, the shamed former CEO of BitInstant, recently called a lawsuit by the Winklevoss Capital Fund as ‘scandalous and fantastical story’, further urging the U.S. judge handling the case to dismiss it.

According to the Winklevoss twins, Cameron and Tyler, the BitInstant CEO spent part of their $750,000 funds which they had invested in the company in 2012 to purchase 5,000 bitcoins, which were then valued at around $61,000. Today, as per the twins, the coins would be valued at a whopping $32 million.

Charles Shrem Sued For Fraud

In September 2018, the Winklevoss twins decided to sue Charles Shem for fraud, claiming that he spent funds that were not his. They had earlier succeeded to freeze his assets even before the beginning of the lawsuit.

However, Shrem responded to the claims on Monday, filing papers with the Manhattan federal court, where he claimed that the bitcoins that he purchased were from a well-known industry player, whom he only identified as ‘Mr. X.’ According to him, no anytime did he own the bitcoins.

Shrem to Be Allowed to Use $50,000 a Month

Cameron and Tyler, however, agreed that Shrem would still be allowed to use around $50,000 per month to cover his living expenses, and the case will be heard further on November 8, when more directions will be given.

The Controversial Shrem

According to Bloomberg, Shrem is not new to controversy. In 2015, he was arrested for helping people use bitcoins to purchase drugs. After hearing of the case and pleading guilty, he was sentenced for a year in prison, and later released in 2016.