According to reports, Glow Token LLC, a cryptocurrency startup, has launched legal proceedings against Crypto.com, one of the largest exchanges in the cryptocurrency industry. Glow Token alleges breach of contract and is demanding over $250,000 in damages, despite acknowledging that Crypto.com might not have been directly involved in the fraudulent activity.
The lawsuit, filed in a Florida court, centers around a series of events that unfolded earlier this year. According to court documents, Bryan Lawrence, the CEO of Glow Token, was contacted by individuals claiming to be employees of Crypto.com. The imposters purportedly engaged in discussions regarding the listing of Glow Token’s cryptocurrency on the exchange. After months of negotiations and document exchanges, Lawrence transferred the funds, totaling $250,000 and one Bitcoin (then valued at $23,000), to an account he believed belonged to Crypto.com.
The situation took a dramatic turn in March when legitimate representatives from Crypto.com informed Lawrence that he had fallen victim to a scam orchestrated by imposters. Crypto.com stated that it had no record of a listing agreement with Glow Token and advised Lawrence to cease any claims to the contrary. However, Lawrence maintained that he had taken careful steps to ensure the legitimacy of the deal.
In a letter announcing the lawsuit, Lawrence asserted, “I conducted my due diligence and directly verified every step with Crypto.com. This included checking the listing link on their website, reviewing all received emails, confirming all the contact information I was provided, accessing the communication platform required by the listing agent, examining the actual listing contract, and all the details [were] verified by multiple representatives from Crypto.com.”
Lawrence’s meticulous approach was further supported by his claim that he had saved copies of all conversations with Crypto.com representatives, despite the logs allegedly being subsequently deleted. He stated, “I had taken precautions and saved copies of all conversations, as I would in any verification process.” Subsequently, he sought legal assistance from his law firm to address the complex situation.
The lawsuit raises questions about the responsibility of cryptocurrency exchanges in cases of scams and fraudulent activities involving their brand. Crypto.com has yet to respond publicly to the lawsuit or the allegations made by Glow Token. As the legal proceedings unfold, the cryptocurrency industry watches closely, anticipating potential implications for the handling of similar situations in the future.
