In the filing with the U.S. District Court for the Southern District of New York, Schrem said the 5,000 bitcoins in question are in a wallet affiliated with him, yes, but the wallet actually belongs to someone else, whose name was redacted in the filing, according to CoinDesk. Schrem said that at no point did he have access to the bitcoin.
For good measure he said the Winklevoss twins are “dead wrong” in their assertion and he wants to block their call for a prejudgment motion to freeze some of his assets.
The Winklevoss suit centers around some 5,000 unaccounted-for bitcoin, which Schrem purchased in 2012 on the brothers’ behalf. They claim he used those bitcoin – worth about $32 million, they say – to finance a lavish lifestyle after he got out of prison in 2016. In 2014, Schrem pleaded guilty for his role in converting dollars into bitcoin to purchase drugs on the Silk Road online marketplace.
To the claim he was spending their digital money on such things as homes and Lamborghinis, Schrem said in the filing: “After I was released from prison, I had a net worth of less than $100,000 and worked for approximately six months at a restaurant in Pennsylvania. Since working at the restaurant, I have worked a variety of jobs that have allowed me to accumulate funds and to restore myself financially.”
Asked for comment by CoinDesk, Schrem’s attorney declined and the Winklevoss brothers did not respond.