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5000 BTC Lawsuit: Winklevoss Twins vs Charlie Shrem

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Charlie Shrem was once an advisor for Winklevoss Twins and helped them in investing $750,000 into Bitcoin but delivered only $189,000 worth of Bitcoin.

Winklevoss Twins file lawsuit against Charlie Shrem

Charlie Shrem, the founding member of the bitcoin foundation and the co-founder of BitInstant was once an advisor for Winklevoss Twins. Charlie Shrem started his investment in bitcoin back in 2011, the same year he founded BitInstant- Bitcoin Exchange. During this period from 2011 to 2012, the Exchange attracted a lot of investments from major industry players which included a group of investors led by the Winklevoss Capital Management.

 

The BitInstant Lawsuit

An year later, in 2013 the BitInstant exchange was ‘sued’ for false representation of services, after which the founder Charlie Shrem was arrested in a case of money laundering and illegal purchasing of drugs from the Silk Road. Charlie was sentenced to two years in prison and a fine of $950,000. Charlie Shrem was released from the prison in 2014.

 

The Case

Charlie Shrem helped the Winklevoss Twins in investing $750,000 into Bitcoin back in 2012. The Winklevoss Twins claim that they were delivered only $189,000 worth of Bitcoin at that time and still $61,000 worth of Bitcoin was yet to be delivered by Charlie Shrem which amounted to around 5000 BTC at that time (According to $12.5 per Bitcoin). Winklevoss Twins claim that they asked Charlie Shrem multiple times for the missing bitcoin but after they did not receive any positive response from him, their accountant documented the frauds and filed the lawsuit. The Winklevoss twins have also quoted an email in the lawsuit which states that:

“I have been patient, and at this point, it’s getting a bit absurd, I don’t take this lightly.”

 

Charlie’s side of the story

Charlie Shrem claims that after his release from the prison, he had only a very few bitcoin left which he had to sell to pay off his rent. He started working as a dishwasher in a restaurant.

It is believed that Charlie Shrem owns a $2 million house in Florida. Also after an investigation by a private investigator hired by the Winklevoss Twins, it was discovered that the missing 5000 BTC were transferred to Bitcoin Wallets: Coinbase and Xapo in 2013 from a bitcoin address associated with Shrem. It is believed that Shrem had purchased 6 expensive properties, 2 powerboats and 2 Maseratis (luxury cars) from the stolen 5000 BTC.

 

The Court’s side of the case

Jed S. Rakoff (Judge), is leading the case who is the same judge who sentenced Charlie to prison back in 2012. The Judge has approved the freezing of all accounts of Charlie Shrem on Coinbase and Xapo wallet. The case seems to be in favor of Winklevoss Twins who are adamant to see Charlie back in prison.

 

#Bitcoin

Donald Trump policies push Mexico to Bitcoin

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Mexico has seen a new all-time high trading volume on localbitcoins. This comes out on the back of the announcement from the Trump Whitehouse.

Mexico has seen a new all-time high trading volume on localbitcoins. This comes out on the back of the announcement from the Trump Whitehouse that remittance payments of Mexican migrants in the United States of America will potentially be the target of new restrictions essentially ending the possibility of Mexican migrant workers to be able to cheaply send money back home to their families.

 

Mexico adopting Bitcoin:

Mexico has been experiencing a massive increase in the number of transactions on localbitcoins. Mexican migrant workers are believed to be exploited by the remittance companies which are charging around 10% fees. What is essentially being discussed here by the Trump Whitehouse is a new tax on these migrant workers. The number that they are currently floating around is a 3% tax on the remittances going from the USA to Mexico. This may not seem super crazy but considering the $33.4 billion which were sent to Mexico in 2018 alone, that extra 3% could mean $1 billion more per year for the United States government.

 

98% of the transactions that were sent during the last year, were sent via electronic means which means that there is actually a very strong remittance route that is ready for mass disruption going from the United States to Mexico and Bitcoin could be the perfect answer. However, the average size of a remittance payment from the United States to Mexico is $322 last year and the problem is that if the fees rise again exponentially on bitcoin, then bitcoin might not be the ideal cryptocurrency for these kinds of smaller remittance payments. Maybe we are going to see some other cryptocurrency being adopted in that situation. But regardless of which cryptocurrency is used, we can see that there is a clear need for disruption as government policies again seeks to impede or overly exploit the free float of money.

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Bitcoin Crashes Downwards: Is BTC Going to Fall Back to $4000?

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Bitcoin fell down to test the $5000 support level. If the current support around $5000 is broken, BTC might really crash to $4500 and $4200 support levels.

Bitcoin fell down to test the $5000 support level which is the most crucial level for BTC currently. The downward correction started after bitcoin tested the $5500 resistance level yesterday at around 18:00 UTC.

 

The resistance around $5500 proved very strong and pushed the price downwards sharply. The sharp declining pattern attracted a lot of sellers which even pushed the price below $5200 support level and BTC tested the $5000 support reaching up to $5018.

BTCUSD Price Chart- Coinbase

BTCUSD Price Chart- Coinbase

Bitcoin is currently trading around $5070 (at the time of publication) showcasing a bearish pattern.

 

Bitcoin Price Drop:

The sudden price drop has led to people speculating that BTC might soon crash back to the $4000 range. Earlier, analysts were also predicting the sudden rise of bitcoin to be a conspiracy. Also, Bloomberg had also called the sudden rise a Blip. If BTC had successfully crossed over the $5500 range, the next major resistance was around $5800, however, BTC fell sharply losing more than $400 in value over the last 24 hours.

 

The bearish move does not clearly indicate a crash towards $4500 and $4000 range, however, if the current major support around $5000 is broken, BTC might really crash to $4500 and $4200 support levels. With the price of bitcoin falling, other major altcoins are also in the red zone today with Ethereum falling more than 8% in the last 24 hours, XRP falling more than 6% and Litecoin falling around 12% in the last 24 hours.

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China to completely ban crypto mining: Bitcoin about to Crash Hard?

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As reported by Bloomberg, China is moving towards putting a complete ban on mining bitcoin and other crypto as it causes serious wasatage of resources.

As reported by Bloomberg, China is moving towards putting a complete ban on mining cryptocurrencies such as bitcoin. In accordance to a document posted by the National Department and Reform Commission of China, the mining of cryptocurrencies should be completely banned as it causes serious wasatage of resources.

 

China is known to be the largest hub of cryptocurrency mining with huge mining rigs been set up in the country. Earlier, China has also banned small investors to invest in security token offerings or STOs and only large investors with more than $1 million funds are allowed to invest in such projects. Now, the country is planning to take strict action against cryptocurrency miners in the country.

 

Cryptocurrency miners were earlier attracted to China due to their cheap electricity rates and subsidies in the country, however, due to the strict actions being taken by the government with the guidelines of the NDRC which has disincentivized cryptocurrency mining, a lot of miners have shut down their operations or moved to other nations.

 

Largest Mining Pools in China:

China has been a hub for some of the largest cryptocurrency mining polls. Even though the mining pools have been shifting to other countries, there has been some effect of the ban on the market for bitcoin and other cryptocurrencies as the mining is a major part of the overall working of cryptocurrencies.

 

How do you think the complete ban on cryptocurrency mining in China will effect the bitcoin price? Tell us in the comments section below.

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