21-8-2023 (MIAMI) Cryptocurrency startup Glow Token LLC has initiated legal action against Crypto.com, one of the industry’s leading exchanges, after falling victim to an apparent scam.
Glow Token has filed a lawsuit in a Florida court, accusing Crypto.com of breaching the contract and seeking over $250,000 in damages. It is important to note that Glow Token acknowledges that Crypto.com may not have been directly involved in the fraudulent activity.
According to court documents, Bryan Lawrence, the CEO of Glow Token, was approached earlier this year by individuals posing as Crypto.com employees, expressing interest in listing Glow’s cryptocurrency on the exchange. Over the course of several months, Lawrence engaged in negotiations and exchanged documents with the imposters, ultimately transferring funds to an account he believed belonged to Crypto.com.
However, in March, officials from the genuine Crypto.com informed Lawrence that he had been scammed by imposters. Crypto.com stated that there was no record of a listing agreement with Glow Token and instructed Lawrence to cease making such claims. Despite this, Lawrence maintains that he took precautions to ensure the legitimacy of the deal.
“I conducted my due diligence and directly verified every step with Crypto.com,” Lawrence stated in a letter announcing the lawsuit. “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 having all the details verified by multiple representatives from Crypto.com.”
Having lost $250,000 and one Bitcoin (valued at $23,000 at the time), Lawrence is now seeking legal recourse, even though the logs of his online chats with Crypto.com representatives were subsequently deleted.
“I had taken precautions and saved copies of all conversations, as I would in any verification process,” Lawrence explained. “It was then that I reached out to [my law firm] to seek assistance in resolving this situation.” The lawsuit filing emphasizes that Lawrence established his company with a focus on charity and community contribution, as well as a commitment to educating the public about the positive impacts of Decentralized Finance (DeFi). It asserts that he has taken a firm stance against “bad actors” in the cryptocurrency space.
The filing further highlights Lawrence’s previously upstanding reputation within the cryptocurrency community and his aspiration to become a positive industry leader in cryptocurrency trading. However, he now finds himself grappling with health issues and financial struggles.
“The stress from these events has caused significant stomach issues, leading to four hospitalizations—I am currently consulting with specialists in the hope of finding a solution to my health problems,” Lawrence wrote. “In order to cover all court costs and work towards a resolution, I had to sell my cherished home. This decision was not easy, as my home held great personal value.”
After making his case public, Lawrence expressed gratitude for the support he received on Twitter.
“I woke up this morning to seeing all of the messages and comments, and it honestly had me tearing up, and I’m still at a loss for words,” he shared. “We have always been very big on doing our due diligence in everything that we do, and we have that on our side. I can assure everyone that I will give my all to make sure everyone is made whole again.”
While scams utilizing the names of major crypto platforms are commonplace, this lawsuit represents a unique effort to hold an exchange legally accountable. Glow Token alleges that even if the scam was orchestrated by third parties, they managed to “compromise and use Crypto.com’s platform” to deceive the startup. The company accuses Crypto.com of enabling the fraud due to a lack of security protocols.
