A cryptocurrency startup, Glow Token LLC, is taking legal action by filing a lawsuit against Crypto.com in Florida court. A lawsuit has been filed accusing one of the largest exchanges of breach of contract and demanding more than $250,000 in damages.
Earlier this year, people pretending to be employees of Crypto.com contacted the CEO of Glow Token, Bryan Lawrence, for listing Glow’s cryptocurrency, FLARE, on the exchange, as mentioned in the court documents.
Lawrence transferred the funds to an account that he thought belonged to Cryto.com after months of alleged negotiations and document exchanges. In March, Crypto.com officials informed him that the criminals had scammed him.
Crypto.com told Lawrence to stop making this claim because Crypto.com has no record of a listing agreement with Glow Token. However, Glow Token accuses Crypto.com of enabling the fraud due to lack of security protocols.
In the lawsuit, he said, “I conducted my due diligence and directly verified every step with Crypto.com.” He also said, “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.”
The online chat between him and Crypto.com representatives has been restricted citing “investigation purposes”. However, he had saved these chats as a precautionary measure for any future verification processes.
As a legal remedy, he asks the legal amount, which includes the $250,000 and one bitcoin valued at $23,000 at that time, that was sent to scammers.
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