Winklevoss Ordered to Pay $45K Worth of Charlie Shrem's Legal Fees

The court filing is the latest in a high-profile lawsuit that has pitted three high-profile cryptocurrency industry personalities against each other.

Feb 8, 2019 at 3:30 a.m. UTC
Updated Sep 13, 2021 at 8:52 a.m. UTC

Investors Cameron and Tyler Winklevoss have been ordered to pay back $45,000 in legal fees incurred by entrepreneur Charlie Shrem as part of an ongoing lawsuit that alleges he failed to broker a series of promised cryptocurrency purchases on their behalf.

In the order, filed in the U.S. District Court of the Southern District of New York on Thursday, Judge Jed S. Rakoff ruled Shrem should be reimbursed for a prior court ruling that gave the plaintiffs the ability to seize up to $30 million worth of his assets.

The initial order was rolled back on November 8, at which point Shrem filed a motion to recoup attorney's fees and related costs to defending the motion.

Lawyers for Winklevoss Capital had attempted to argue Shrem should not recoup the funds for his costs, as he was only ultimately only charged a "de minimis amount" of less than $5. The court, however, ultimately rejected the idea this invalidated Shrem's claim, though the judge found the requested damages should be reduced by 40 percent on reviewing the charges.

Brian Klein, partner at Baker Marquart LLP, said of the ruling:

"We are glad that the judge ruled for Charlie and ordered WCF to reimburse him for legal fees he incurred in overturning WCF’s approximately $30 million attachment order. This is another big step towards his full vindication."

Overall, the court filing is the latest in a recent lawsuit that has pitted three high-profile cryptocurrency industry personalities and former business partners against each other in the headlines.

Winklevoss Capital was previously an investor in Shrem's first startup BitInstant, an early cryptocurrency exchange that was one of the most public before its eventual shut down in 2013. Shrem was later found to have violated anti-money laundering rules during his tenure as CEO, for which he would ultimately serve a one-year prison sentence.

A trial is now set to hear further arguments in the ongoing lawsuit this June.

Charlie Shrem image via CoinDesk archives

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
Coinbase Co-Founder Fred Ehrsam Buys the Dip, Purchases $75M of Company Stock

The buys were made via venture capital firm Paradigm, of which Ehrsam is a co-founder and managing partner.

The buys were made via venture capital firm Paradigm, of which Ehrsam is a co-founder and managing partner.

CoinDesk - Unknown
2
CoinDesk - Unknown
CoinDesk DACS

Digital Asset Classification Standard

Digital Asset Classification Standard

CoinDesk - Unknown
3
CoinDesk - Unknown
Dai Creator Rune Christensen on Terra's Collapse

The MakerDAO founder wasn’t in the mood to say “I told you so,” following Terra’s stablecoin collapse, on CoinDesk TV’s “First Mover.”

The MakerDAO founder wasn’t in the mood to say “I told you so,” following Terra’s stablecoin collapse, on CoinDesk TV’s “First Mover.”

CoinDesk - Unknown
4
CoinDesk - Unknown
There Was No Terra ‘Attack’

Conspiracy theories won’t save you from financial reality, says CoinDesk's chief insights columnist.

Conspiracy theories won’t save you from financial reality, says CoinDesk's chief insights columnist.

CoinDesk - Unknown