- Cryptocurrency project Glow Token is suing Crypto.com, alleging a $250,000 scam by impostors posing as Crypto.com employees
- Glow Token’s CEO transferred funds to the scammers before being told by Crypto.com that there was no deal in place
- This unique case challenges an exchange’s responsibility in such situations
Cryptocurrency project Glow Token has taken legal action against Crypto.com, one of the industry’s prominent exchanges, after its CEO fell victim to a scam that saw him lose $250,000. The Florida-based project last week filed a lawsuit accusing Crypto.com of breach of contract and demanding over $250,000 in damages after alleged representatives of the exchange solicited that amount from CEO Bryan Lawrence, but proved to be fraudsters.
Fraudsters Impersonated Crypto.com Employees
According to court documents, Lawrence was approached by individuals impersonating Crypto.com employees. The imposters allegedly engaged in discussions about listing Glow’s cryptocurrency on the exchange, leading to Lawrence transferring the funds, plus one bitcoin, to them, believing the deal was genuine.
However, in March, legitimate representatives from Crypto.com informed Lawrence that he had been scammed, denying any listing agreement for the Glow token. Despite Crypto.com’s denial, Lawrence claims to have verified the deal meticulously, including checking the exchange’s website and reviewing communications he was given.
The logs of Lawrence’s online conversations with Crypto.com representatives were apparently deleted, meaning he no longer has any proof of what was said to him and by whom, but he has still sought legal recourse to get his funds back.
Lawrence Received Support from the Community
Lawrence, who founded Glow Token with a focus on charity and community impact, asserts that the stress from the events has taken a toll on his health and finances, leading him to have to sell his home to cover legal expenses. He posted about the issue on X on Friday after the filing was made:
Good morning Glow Family!
I have not been able to talk about the situation until now so here is the formal statement to explain the situation and lawsuit against https://t.co/zGWE43JquH. Thank you everyone for your patience as we work to get a resolution. #GlowToken pic.twitter.com/clIQMHxIz6
— 🎗️Bryan Lawrence (@GlowTokenCEO) August 18, 2023
Lawrence received massive support from the community, with all responses wishing him well.
While scams using the names of major cryptocurrency platforms are common, Glow Token’s lawsuit represents a less common attempt to hold an exchange legally accountable. The filing alleges that even if the scam was perpetrated by third parties, Crypto.com’s platform was compromised and used to deceive Glow Token, suggesting that Crypto.com’s lack of security protocols facilitated the fraud.
Crypto.com has yet to reply to the charges.
