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After much back-and-forth, Charlie Shrem and the Winklevoss twins have settled their feud stemming from a failed business deal, as announced on April 16, 2019.
White Flag
In the crypto industry and the business world in general, it is not unusual for business partners to fall out and sometimes these fallouts end up with legal action being taken against one of the parties. However, one of the most interesting feuds in crypto history is among former business partners the Winklevoss twins and Charlie Shrem, who fell out after a business deal went wrong.
The twins went on to sue Shrem and the case has been in court for over a year, with the judge even ordering them to pay Shrem for his legal fees at a point. Thankfully, the two parties seem to have reached some form of resolution as it was announced on April 16, 2019, that they had reached a legal agreement and have ended their lawsuit.
Calling a Truce
According to official court documents, the legal representations for both parties have agreed with the federal court in New York to dismiss the entire civil action voluntarily and without prejudice. The legal documents also state that the Winklevoss twins and Shrem will pay their legal fees and that the case will not be reopened at any time. Earlier in April, it was confirmed that an agreement had been reached and that both parties had 30 days to fully affect the agreement or else, the matter would go to trial.
Shrem has since stated that the allegations against him were bogus and that he is happy to be free of them.
He said:
“From day one, I’ve maintained the allegations are bogus, and they are of course. After their attorney was sanctioned and they were ordered to pay my legal fees twice, we recently reached a confidential resolution, and I’m dismissed from the case. I’m thankful for Brian Klein and my legal team and pleased to have this case behind me.“
What Caused the Feud?
While the case has been dropped, it is important to examine what exactly caused the rift between the Winklevoss twins and Shrem. It goes as far back as 2012 when the twins invested money into a venture with Shrem but eventually, it went south. They then accused him of stealing 5,000 bitcoin, which is, today, worth about $26 million and. The twins also accused Shrem of spending crypto they had invested to buy luxury goods, which Shrem has always denied.
This business deal took place before Shrem spent a year in prison for facilitating a drug purchase using bitcoin.