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Bitcoin’s ‘First Felon’ Faces More Legal Trouble

93 points| ilamont | 7 years ago |nytimes.com

49 comments

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[+] apsec112|7 years ago|reply
Ahhhh, yes, I remember Mr. Shrem. He acquired my Bitcoin company in 2012, we signed an acquisition contract and everything, and then he just never paid me and threatened me when I tried to collect (it was a five-figure sum). And to think I'd even helped him with his college math homework.
[+] csomar|7 years ago|reply
> threatened me when I tried to collect

That part is not really clear. My understanding is that if he physically threatened you, you could file for a criminal case and he'll be in much deeper trouble than just not paying.

[+] delinka|7 years ago|reply
I’m hoping the contract’s execution was contingent on payment being received by you.
[+] twblalock|7 years ago|reply
Did you take him to court over the issue?
[+] icedchai|7 years ago|reply
I'm curious. What sort of "company" is acquired for 5 figures? I assume that's in USD and not BTC.
[+] krupan|7 years ago|reply
He wrote a "Geek in Prison" series that was interesting:

https://medium.com/@cshrem

[+] Scoundreller|7 years ago|reply
> Throughout the day I kept checking the computer to see if the funds she added through Western Union were available yet.

This wait must have torn him apart.

[+] HEHENE|7 years ago|reply
Thanks for that link - incredibly insightful.
[+] digianarchist|7 years ago|reply
Baffles me how Mr Shrem is held up as some Bitcoin martyr by those in the community even as late as yesterday.

Here's OpenBazaar's lead developer mentioning that Shrem went to jail because "Bitcoin is challenging the way money works in society". Shrem went to jail for laundering money for drug dealers. That's certainly one way of challenging how money works in society.

https://www.youtube.com/watch?v=zL9MkOGgVAQ

The Bitcoin community seems to have trouble choosing it's spokespeople. Remember Bruce Wagner?

https://www.metafilter.com/107065/Bruce-Wagner-and-the-Bitco...

[+] bredren|7 years ago|reply
I was invited to a house party at this guy’s place when he was under house arrest. I said no thanks.
[+] will_brown|7 years ago|reply
The time line suggests this might actually be barred by the statute of limitations.

If so the case would be dismissed notwithstanding if the allegations are true.

[+] Matticus_Rex|7 years ago|reply
Fishing expedition. The money probably isn't theirs (there are plenty of places Charlie could have made that money since release, given what he does and what he's been involved in), but on the off-chance it is, they may win OR get uncomfortably close in discovery to stuff he doesn't want light on, and he'll settle.
[+] maehwasu|7 years ago|reply
Why the hell would he be dumb enough to buy all this stuff in the US? At least go to a country where your assets won't get easily frozen, and where it's hard to extradite.

What an utter moron.

[+] JumpCrisscross|7 years ago|reply
“Over the last year, Charlie Shrem, a 28-year-old Bitcoin investor, has bought two Maseratis, two powerboats — one of them 32 feet long — and a $2 million house in Florida, along with smaller pieces of real estate.

...

Mr. Shrem...has said in recent interviews that he went to prison with almost no money.”

What an idiot. Right out of jail, owes the feds hundreds of thousands of dollars, and can’t help but conspicuously consume.

[+] paulcole|7 years ago|reply
Florida's a great place to do this because of the bankruptcy homestead exemption:

> In bankruptcy, the Florida homestead exemption allows a primary residence of unlimited value to be protected from creditors as long as the debtor has lived in Florida for 40 months or more, and the property is not larger than half an acre in a municipality or 160 acres elsewhere

OJ Simpson used the same trick to prevent the Goldman family from getting his house.

[+] jandrese|7 years ago|reply
I feel like buying a ton of stupidly expensive shit and having no cash on hand might somehow be related.
[+] baxtr|7 years ago|reply
I’m somewhat disappointed that he didn’t buy any Lambos...
[+] browsercoin|7 years ago|reply
> two Maseratis

jesus christ. does this man have no taste? Maserati is the car poor people buy when they can't afford Ferrari in Vancouver, BC. Doug Demuro agrees.

[+] conanbatt|7 years ago|reply
> Mr. Shrem...has said in recent interviews that he went to prison with almost no money.

> Bitcoin

Please..

[+] gammateam|7 years ago|reply
I think it is a major flaw to assume someone's conspicuous consumption is from YOUR money.

This man has been in crypto for 8 years

Anyone that was there for the last 15 months could have made enough FROM SCRATCH to buy those things just trading. I've had hundreds of dollars of DUST in exchanges and wallets that I rediscovered were worth 6 figures, and at some points 7 figures if had checked. Even if the government had frozen some of my assets in connection with blah blah blah, I'd still have this stuff.

Add in advisory roles, salaries, the conference circuit, you might as well just fire your lawyer for coming up with that children's tale, and just stick to why someone might owe you money not "and here's proof they're the bad guy we must stop him NAO!"

[+] pmorici|7 years ago|reply
It doesn't really matter if his current wealth is a derivative of past dealings or recent success. He still owes those past debts unless he declared bankruptcy and they were discharged. It also sounds like the Winklevoss have some block chain evidence that his current wealth is related to long held Bitcoin.
[+] bdcravens|7 years ago|reply
The conspicuous consumption does make it easier to show that he has assets to pay them back if he does indeed owe them.
[+] sjg007|7 years ago|reply
His problem is that he said he was bankrupt when he went to prison. Not sure if he declared bankruptcy but...
[+] raverbashing|7 years ago|reply
Yeah, these are typical excuses used by crooks.

Unless your current debts have a payment plan set up, the priority is them.