Denver Crypto Clash: Bitcoin Pioneers Battle Over $25 Million Loan
Two early Denver cryptocurrency investors and longtime friends are embroiled in a legal dispute over a $25 million loan, highlighting the risks and complexities within the rapidly evolving digital asset space. James Hilliard and Michael Dupree, who met in 2014 during the early days of Bitcoin, are now locked in a bitter battle that centers around a disputed contract and accusations of fraud.
A Friendship Forged in the Early Days of Bitcoin
James Hilliard and Michael Dupree’s relationship dates back to 2014, when Dupree ran the Denver Bitcoin Center and Bitcoin was valued at just a few hundred dollars. According to legal documents filed by Dupree, Hilliard spent significant time at Dupree’s nonprofit bitcoin community center, and the two traveled extensively together, collaborating on various ventures within the burgeoning crypto community. Denver Post, BusinessDen
EasyBit and the Need for Liquidity
Their collaborations included EasyBit, a company founded by Dupree that operated Bitcoin ATMs. Hilliard, similarly an engineer, explained in an affidavit that operating Bitcoin ATMs required significant liquidity, leading Dupree to occasionally borrow Bitcoin from him. Hilliard claims he loaned Bitcoin to Dupree on multiple occasions in 2015 and 2016, with the understanding that the loans would be repaid within an agreed-upon timeframe. Denver Post, BusinessDen
The Disputed $25 Million Loan
A six-page contract dated January 8, 2018, appears to memorialize an unpaid loan of 69.8 Bitcoins from Hilliard to EasyBit. At the time, one Bitcoin was worth approximately $15,000. Hilliard is now seeking $7.8 million for the original Bitcoin principal, plus $16.4 million in interest and a 5% premium, totaling around $25.4 million. Hoodline, Denver Post
Allegations of Fraud
Dupree disputes the validity of the loan, claiming the contract is a fabrication. He alleges that the signature on the contract was extracted from a previous document and that he was with Hilliard all day on January 8, 2018, and did not sign any such agreement. Dupree further states that all EasyBit contracts are reviewed by his father, the company’s lawyer, and that he has never personally guaranteed a business loan. Denver Post, BusinessDen, Hoodline
Legal Proceedings
The dispute has led to arbitration and a lawsuit filed in Denver District Court. Dupree is asking Judge Heidi Kutcher to hold an evidentiary hearing to investigate the alleged fraud. Hilliard’s legal team has declined to comment on the allegations. Law.com Radar, Denver Post
Bitcoin’s Volatility Impacts Claim
The value of Bitcoin has fluctuated significantly since the alleged loan was made. While Bitcoin was worth approximately $112,000 in September, its value has since dropped to around $70,000 as of March 12, 2026, impacting the overall value of Hilliard’s claim. Denver Post