Crypto Firm Founder Scammed, Sues Crypto.com For $250,000 In Damages
Glow Token LLC has taken legal action against leading cryptocurrency exchange Crypto.com, aiming for more than $250,000 in compensation after falling prey to an apparent fraudulent scheme.
Court records reveal that Bryan Lawrence, CEO of Glow Token, was targeted by individuals posing as Crypto.com staff members, manipulating him into transferring funds for the purpose of listing Glow Token’s cryptocurrency on the platform. These scammers successfully obtained $250,000 along with one bitcoin from Lawrence, who later discovered that he had been deceived by impostors.
Lawrence, the entrepreneur behind Glow Token, which initially centered on charitable and community educational initiatives, emphasizes that he conducted rigorous due diligence and personally validated each step with Crypto.com.
“Back in February of 2023, I applied for a crypto.com listing. During this process, 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 was provided, accessing
the communication platform required by the listing agent, examining the actual listing contract, and all
the details was verified by multiple representatives from Crypto.com,” Lawrence said in a public letter.
However, in March, legitimate representatives from Crypto.com informed Lawrence of the scam, revealing that no official listing agreement with Glow Token existed. He added that “Crypto.com removed [his] access to the chat logs, citing ‘investigation purposes,’ and subsequently sent [him] a cease and desist letter.”
“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. However, it was necessary to ensure that
evervone affected by this situation is made whole again,” he said.
The emotional strain from these events led to severe gastric problems, resulting in four hospitalizations.
Glow Token’s lawsuit, filed in a Florida court, alleges that Crypto.com’s inadequate security protocols facilitated the fraudulent act. The company accuses Crypto.com of negligence, arguing that an employee or an external entity exploited the security loophole within the internal communications of the organization.
This legal action marks a unique attempt to hold an exchange accountable for third-party perpetrated fraud. Glow Token contends that the scammers successfully “compromise and use Crypto.com’s platform” to deceive their venture, pointing to negligence as the central motive for the legal recourse.
The litigation against Crypto.com follows recent reports that the exchange’s internal trading activities might attract regulatory scrutiny. Reports emerging on June 19 suggested that Crypto.com allegedly employs in-house teams for market making and proprietary trading, a practice undisclosed to the public.
Executives at Crypto.com vehemently deny the engagement in trading activities, introducing an added layer of intricacy to the exchange’s ongoing challenges.
Information for this briefing was found via Cryptopolitan and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
