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Bitcoin Theft: Winklevoss Brothers Sue Charlie Shrem for 5,000 Bitcoins

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The Winklevoss brothers Cameron and Tyler has sued Charlie Shrem for allegedly stealing 5,000 Bitcoin from them. Charlie Shrem who is also referred to as bitcoin’s ‘first fellon’ had been arrested in 2015 for using his investment knowledge to make it possible for consumers to buy drugs online. Charlie who was the former chief executive for BitInstant at that time claimed that he had little funds at his disposal when he went to prison.

However, Charlie now has a house worth $2 million in value, two Maserati’s, two powerboats, and multiple real estate properties. The
Winklevoss twins however feel Charlie has been holding out on them considering his sudden fortune. The brothers claim that Charlie had been a part of the Winklevoss twins’ investments in Bitcoin in 2012 and owes them $32 million according to the current price of Bitcoin. The lawsuit against Charlie Shrem states, “Either Shrem has been incredibly lucky and successful since leaving prison, or — more likely — he ‘acquired’ his six properties, two Maserati’s, two powerboats and other holdings with the appreciated value of the 5,000 Bitcoin he stole”.

The Winklevoss twins claimed Charlie’s newly acquired wealth lead to the investigation. Cameron Winklevoss revealed, “When he purchased $4 million in real estate, two Maserati’s, and two power boats, we decided it was time to get to the bottom of it.” The twins had supplied $750,000 to Charlie Shrem to help them in their Bitcoin investment. Few months later, they discovered they were missing funds. In September 2012, they contributed $250,000 and  only received back $189,000 worth of Bitcoin at the price of that time. The missing bitcoins caused a lot of problems between both parties and the twins had to document the bitcoin purchase by hiring an accountant to document the missing funds. During the course of investigation, the Winklevoss’ learned that the Bitcoins had been transferred to Xapo and Coinbase using digital wallet address.

Some of Charlie Shrem’s assets were frozen by Judge Jed S. Rakoff of the Southern District of New York during the earliest stages of the trial. Charlie also has some other big issues to face as the affidavit also claims that he has not fulfilled the $950,000 restitution that he was assigned to pay in the case that ultimately sent him to prison. Charlie on the other has not found things easy in the crypto space. He had launched an ICO and a crypto card product that failed. He however claims, “My personal life goes through bull and bear markets, too. So, the key is how to deal with it when you’re in the bear markets.”

 

What do you think about the Winklevoss twins allegation? Share your opinion with us in the comment section below.
Image credit: Pixabay

 

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The Information provided on the website is designed to provide helpful information regarding cryptocurrency subjects. The content is not meant to be used, nor should it be used as a basis, foundational knowledge or prerequisite for decision making regards trading. Always do your own research and due diligence before placing a trade. We are not liable for any outcome based on any content found on the site.

 

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I am a blockchain and cryptocurrency journalist fascinated with sharing the knowledge of this wonderful technology in the simplest language possible.

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Bitcoin News

Antivirus Firm, ESET Gives warning over Trojanized Tor Browser Targeting Bitcoin Users

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Antivirus Software supplier firm ESET has given warning
about a trojanized Tor Browser which criminals use to exploit people and steal their Bitcoin.

The criminals using a modified (infected) version of the official Tor Browser package, steal bitcoins from darknet market buyers.

According to ESET, the cybercriminals have gotten access to more than $40,000 in Bitcoin.

The infected Tor Browser has been spreading using two websites claiming to distribute the official Russian language version of the Browser. Once the first website (torproect.org) is opened, visitors are shown a message that their version of Tor is outdated.

“Your anonymity is in danger!

WARNING: Your Tor Browser is outdated

Click the button “Update”

An unsuspecting visitor is immediately redirected to another website (tor-browser.org) if he clicks to update, where he will be able to download the infected Tor browsers.

ESET reports the website only has a Windows OS Version.

The two websites were created in 2014 with the first one appearing exactly like the official torproject.org website.

In order to continue stealing from their victims, the criminals deactivated function that allows users to update their Tor Browsers to the latest version which would render the attackers efforts useless.

With extensive modifications made on the infected Tor Browser, the cyber criminals could modify any add-on and it will be loaded by the browser without any issue about it failing its digital signature check.

Thus, users are exposed to a wide range of attacks. Users are targeted by a javascript payload that lets the infected Tor Browser swap original bitcoin addresses with that of the criminals. This happens once victims accesses their profile page in order to add fund their accounts using bitcoin.

ESET reports that the payloads have only be seen targeting Russian darknet markets

According to the Antivirus supplier, three bitcoin wallets containing several transactions were identified and have been in use since 2017.

The three wallets reportedly contain a total of 4.8 bitcoin which worth anything $40,000. However, ESET warned the stolen funds could be higher as the criminals also targeted QIWI wallets.

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Satoshi has been added to the Oxford English Dictionary

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The Oxford English Dictionary has officially added the meaning of Satoshi to its database.

Satoshi according to the dictionary published by Oxford University Press was defined as as a noun to be “The smallest monetary unit in the Bitcoin digital payment system, equal to one hundred millionth of a bitcoin.”

The Oxford English Dictionary had also added cryptocurrency to its database about five years after adding Bitcoin which it defined as “a digital currency in which transactions can be performed without the need for a central bank.”

Cryptocurrency was given two definitions one being

“An informal, substitute currency”

While the second definition presents a more general appeal. It defined cryptocurrency as “Any of various digital payment systems operating independently of a central authority and employing cryptographic techniques to control and verify transactions in a unique unit of account; (also) the units of account of such a system, considered collectively”

The addition was first published in September, 2019. The OED.com according to it, is a living text, and it is updated every three months.

About OED

The Oxford English Dictionary (OED) is widely regarded as the accepted authority on the English language. It is an unsurpassed guide to the meaning, history, and pronunciation of 600,000 words— past and present—from across the English-speaking world.

The OED started life more than 150 years ago. Today, the dictionary is in the process of its first major revision. Updates revise and extend the OED at regular intervals, each time subtly adjusting our image of the English language.

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Amour Reports Show that Dark Web Criminals are Selling Cash for Bitcoin at Ridiculous Rates

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Cloud security provider, Armour releases a second annual research report which shows that unscrupulous persons are selling cash for Bitcoin on the Dark web at a ridiculously high rate.

Cash for pennies on the dollar

The researchers took time to make a thorough inspection of 12 different hacker Market place which spanned over a period of 20 weeks, and fully confirmed the exchange of Bitcoin for cash at pennies on the dollar. According to the report markets on the dark web are blooming despite the increasingly stringent restrictions they have been faced with.

This discovery about the use of Bitcoin to aid in the laundering of funds by criminals was of more concern to the crypto community. The report stated:

 

“One of the cleverest services spotted was where a criminal can pay a seller $800 in Bitcoin and have $10,000 transferred to a bank account of their choice or wired to them via Western Union, a seamless turn-key money laundering service.”

 

Although 12 cents on the dollar might come off as a really exploitative rate of exchange for illicitly acquired funds, the Armor report claims that would be an attractive offer for criminals with less experience

Chris Hinkley, head of Armor’s TRU team, explained:

“For those scammers who don’t possess the technical skills and a robust money mule network to monetize online bank account or credit card credentials, this is an offer that can be very attractive…this clever service gives them an additional channel for monetizing the large amounts of financial data available on the underground.” He said.

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Bitcoin Was Facebook First Choice Before Libra – Bill Barhydt

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Bitcoin has revealed to be the first choice for Facebook’s cross border payment system. This revelation was made by Abra’s CEO Bill Barhydt. According to the CEO, Facebook wanted to integrate Bitcoin directly into its platform but that was not to be.

The decision to create Libra was informed by the unsuitability of the Bitcoin to support the volume of transactions which will flow through the Facebook’s ecosystem.

On June 16, 2019, Facebook released the Whitepaper of its cryptocurrency project revealing the Libra cryptocurrency and the Calibra wallet. This quickly created a wave of legitimacy to the cryptocurrency industry with clear evidence of the upshot of the prices of various cryptocurrencies with bitcoin notably rising upto $13,000.

In a Podcast hosted by Peter McCormack, in the interview, Barhydt revealed that Facebook had bitcoin as its first choice. This would have exposed the billions of users on its platforms to cryptocurrencies which the industry greatly desired. Mass adoption.

Creating Libra was a carefully thought out plan as indicated by Barhydt’s believe of the Facebook blockchain team whom he described as “These are smart people”

According to him, they have examined Lightning Network, Bitcoin and came to the conclusion that Bitcoin is not optimized to be a payment network instead it is best suitable to be a digital cash at the moment.

The inability of Bitcoin to scale so as to accommodate more transactions per seconds was the reason why the Bitcoin community saw a split in august 2017. Since no consensus was reached, Bitcoin divided into two with one faction deciding to increase the block size -Bitcoin Cash (BCH) whiles the other part retaining the original block size – Bitcoin Core (BTC).

Still facing stiff setbacks from scrutiny of regulators after it released its whitepaper despite the arsenal of powerful corporations in the Libra association, Facebook revealed in its whitepaper that Libra will launch in January 2020.

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