Charlie Shrem Says He Never Owned Bitcoin Claimed Stolen By Winklevosses

Early bitcoin entrepreneur Charlie Shrem is pushing back against an accusation that he stole 5,000 bitcoin from Tyler and Cameron Winklevoss, according to recently-published court filings.

In a document filed Monday with the U.S. District Court for the Southern District of New York, Shrem calls the Winklevoss brothers' assertion that he stole 5,000 bitcoin "Dead wrong," while also arguing against a prejudgement motion to freeze certain of his assets.

The Winklevoss brothers sued Shrem in September, though the complaint remained under seal until October, claiming that while they paid him $1 million to purchase bitcoin on their behalf in September 2012, he failed to deliver 5,000 coins, instead keeping them for himself.

In Monday's filing, he claims that 5,000 bitcoin in a wallet affiliated with him belonged to another individual whom he assisted, and that he, at no point, had access to the bitcoin.

In a separate affidavit, Shrem says he helped this individual transfer 5,000 bitcoin into a cold storage wallet in 2012.

Shrem goes on to state that he "Never moved those bitcoin again."

He claims he "Never personally owned the 5,000 bitcoins discussed above, nor have I ever personally owned 5,000 bitcoins all at one time."

He also claims that despite suggestions to the contrary, he has paid part of the $950,000 he owes federal authorities as part of his 2014 guilty plea deal for running an unlicensed money-transmitting business.

Opposing the prejudgement freezing of some of his assets, Shrem further claimed that Winklevoss Capital Fund, the entity named in the plaintiffs' side of the lawsuit, fails to prove either that the overall suit would succeed or that Shrem actively sought to defraud the plaintiffs.

Tyler Winklevoss, Cameron Winklevoss and the Winklevoss Capital Fund did not immediately respond to a request for comment.