Cameron and Tyler Winklevoss have settled their lawsuit against fellow early bitcoin entrepreneur Charlie Shrem, whom they previously claimed owed them $26 million worth of the cryptocurrency.
In an April 5 court filing, Judge Jed Rakoff of the U.S. District Court for the Southern District of New York dismissed the case, explaining that the parties had informed the court they had reached a settlement.
However, both parties have the right to reopen the cause and proceed to trial within 30 days, or by May 5, "if the settlement is not fully effectuated," the judge wrote.
The terms of the settlement are confidential, Brian Klein, Shrem's lawyer, told CoinDesk.
According to a separate filing by the attorney for the twins' Winklevoss Capital Fund (WCF), the plaintiff in the case, "WCF and Shrem will each bear their own attorneys’ fees and costs. The case will not be reopened."
In a statement provided to CoinDesk, Shrem said:
The Winklevoss brothers had alleged, in their case filed in September of last year, that back in 2012 Shrem had accepted a total of $1 million to buy bitcoin on their behalf and later realized that Shrem had not given them the full value of the amount in bitcoin.
They claimed to be short by roughly 5,000 bitcoin, worth about $26 million at today’s prices.
At the time of the deal in 2012, one bitcoin was worth approximately $12.50.
Before the settlement was reached, Shrem had sought to depose the Winklevosses' attorney, Tyler Meade.
CoinDesk will update this article as more details are obtained.
Charlie Shrem image via CoinDesk archives
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.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.