Glow Token CEO Sues Crypto.Com After Losing $250,000 And House To Scammers
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A crypto token founder is suing the Crypto.com cryptocurrency exchange after falling victim to a scam. The CEO of Glow Token, Bryan Lawrence, claims that the major exchange is responsible for a breach of contract while also acknowledging that Crypto.com might have been unaware of the fraud.
Token founder sues Crypto.com
The token founder sued Crypto.com in a Florida court. In the court documents, Lawrence claims that he was approached by some individuals claiming to be employees of Cryto.com. These employees claimed they would help list Glow’s cryptocurrency on the exchange. Lawrence engaged with these employees before depositing funds in an account that purportedly belonged to Crypto.com for the token’s listing.
However, in March, officials from Crypto.com informed Lawrence that the imposters scammed him. The exchange said there were no negotiations with the Glow Token. Lawrence claims he did his due diligence to ensure the deal was with the exchange.
He noted that before negotiating with the imposters, he had checked the listing link on the exchange’s website, reviewed all emails, and confirmed the contact information. He also examined the listing contract, adding that representatives from the exchange verified the details. Lawrence later transferred $250,000 and one Bitcoin to the scammers.
Lawrence is now seeking legal action after his losses. He also claims that his online chats with Crypto.com employees were deleted. Glow Token admits that third parties might have operated the scam. However, these third parties compromised and used the Crypto.com exchange to trick the startup. As such, the lawsuit claims Crypto.com enabled fraud through deficiencies in its security protocols.
“I had taken precautions and saved copies of all conversations, as I would in any verification process. It was then that I reached out to [my law firm] to seek assistance resolving the situation,” Lawrence said.
Charity-focused project
Lawrence said his startup focused on charity and giving back to the community. Its purpose was to educate people about the decentralized finance (DeFi) space. According to Lawrence, he had a good reputation in the cryptocurrency industry. If the project had succeeded, he would have emerged as a positive contributor and a community leader in this space.
He noted that the stress caused by these events had affected his health. He also added that he sold his house to cover the legal fees and work towards a resolution. He further noted that selling his home was not easy as it held sentimental and personal value to him.
Lawrence’s lawsuit received support from the crypto community on Twitter. He voiced his appreciation for the support, saying that he had conducted due diligence on his engagements with the purported Crypto.com employees. According to him, the due diligence process would affect the case outcome. He also assured the community of being made whole again if the lawsuit goes in his favor.
