Glow Token LLC filed a lawsuit against cryptocurrency exchange giant Crypto.com in a Florida court, claiming breach of contract and seeking over $250,000 in damages. The lawsuit comes after Glow Token CEO Bryan Lawrence fell victim to a sophisticated scam earlier this year. While acknowledging that Crypto.com may not have been directly involved in the scam, Lawrence’s legal action underlines the growing challenges the crypto industry faces in combating phishing activities. Here are the details…
Cryptocurrency exchange sued
According to court documents, Bryan Lawrence was contacted earlier this year by people claiming to be Crypto.com employees expressing interest in listing the Glow Token cryptocurrency on the exchange. Months of negotiations and document exchanges resulted in Lawrence transferring the requested funds, including $250,000 and one Bitcoin, to an account he believed was associated with Crypto.com.
https://twitter.com/GlowTokenCEO/status/1692479026328150049
The situation took a dramatic turn in March when true representatives of Crypto.com reached out to Lawrence, revealing that he was the victim of scammers pretending to be their employees. The legitimate Crypto.com team confirmed that there is no listing agreement with Glow Token and advised Lawrence to stop its claims. Despite this statement, Lawrence argued that he diligently verified the authenticity of the deal and went so far as to cross-reference the details with multiple representatives from Crypto.com.
Due diligence done
In a statement announcing the case, Lawrence emphasized his commitment to due diligence. “I did my due diligence and directly verified every step with Crypto.com,” Lawrence said. Also added:
This included checking the listing link on their website, reviewing all emails received, verifying all contact details provided to me, accessing the communication platform required by the listing agent, reviewing the actual listing agreement, and verifying all details by multiple agents from Crypto.com.
Will the exchange be held liable for losses?
The lawsuit, filed in a Florida court, aims to hold Crypto.com liable for the alleged breach of contract and subsequent financial losses. Lawrence’s frustration is evident as he grapples not only with financial repercussions but also with deleted logs of online chats with Crypto.com agents, making it difficult to prove his diligence. Glow Token’s mission, as stated in the filing, was to contribute positively to the cryptocurrency community by promoting Decentralized Finance (DeFi) and philanthropic initiatives. Taking a principled stance against “bad actors” in the cryptocurrency space, Lawrence claims in his filing that he has a solid reputation in the crypto community and is well on his way to becoming an influential industry leader in cryptocurrency trading.
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