Two Denver-based crypto investors, James Hilliard and Michael Dupree, are embroiled in a substantial legal dispute involving a claimed debt of $25 million. The two men, who have been close friends since they met in 2014 when bitcoin was valued at only a few hundred dollars, have seen their relationship deteriorate over financial disagreements tied to their shared interests in cryptocurrency.
According to legal documents filed by Dupree this month, Hilliard spent an extensive amount of time at the Denver Bitcoin Center, a nonprofit run by Dupree that became a hub for the local crypto community. Over the years, the pair traveled to numerous countries together and embarked on various business ventures, including operations of bitcoin ATMs under a company Dupree founded named EasyBit.
Hilliard claims that between 2015 and 2016, he loaned Dupree bitcoin multiple times to help maintain liquidity for the ATMs. He alleges that while he was usually repaid in a timely manner, the situation changed after a 2018 contract was established. This contract, which both parties reportedly signed, formalizes a loan of 69.8 bitcoins from Hilliard to EasyBit. During that period, the value of bitcoin had skyrocketed to approximately $15,000 per coin.
Hilliard’s affidavit states that he has repeatedly requested repayment of the bitcoin, to which Dupree has allegedly either responded with silence or outright refusals. Hilliard’s legal representatives have since demanded a total of $25.4 million, which comprises the unpaid loan amount, interest accrued at the time of the claim, and a premium. As of now, the value of bitcoin has significantly decreased to about $70,000.
In response to Hilliard’s claims, Dupree asserts that the contract in question is a forgery. He has accused Hilliard of fabricating the document, claiming that his signature was lifted from another paper without his consent. Dupree maintains that he has video evidence of the two of them together for the entire day the contract was purportedly signed, thus reinforcing his claim that the transaction could not have taken place as described. Moreover, he argues that all contracts related to EasyBit are thoroughly reviewed by his company’s attorney, suggesting he has never personally guaranteed any loans.
Dupree is seeking to have the case dismissed by Denver District Judge Heidi Kutcher, noting that the stakes of arbitration are insurmountably high and requesting an evidentiary hearing to demonstrate the alleged fraud surrounding Hilliard’s claims.
The ongoing saga highlights the complexities of camaraderie and business within the rapidly evolving cryptocurrency sector, showcasing how quickly relationships can sour amidst financial disputes. The outcome of this case could have significant implications, depending on the validity of the claims each party has put forth.
