Crypto.com in Legal Crosshairs After Glow Token CEO Conned of $250K

Glow Token LLC, a cryptocurrency startup, has taken legal steps against one of the industry’s largest exchanges, Crypto.com, following an apparent scam.

In a lawsuit filed in a Florida court, Glow Token accuses Crypto.com of breaching a contract and claims damages exceeding $250,000. It’s worth noting 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 who posed as Crypto.com employees and expressed interest in listing Glow’s cryptocurrency on their platform. After several months of negotiations and document exchanges, Lawrence transferred funds to an account he believed was affiliated with Crypto.com.

However, in March, Lawrence was informed by legitimate representatives from Crypto.com that he had fallen victim to scammers posing as their team. They denied any listing agreement with Glow Token and asked Lawrence to stop making such claims. Despite this, Lawrence insisted that he had taken careful steps to verify the legitimacy of the deal.

Lawrence said, “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 I was provided, accessing the communication platform required by the listing agent, examining the actual listing contract, and all the details were verified by multiple representatives from Crypto.com.”

Having transferred $250,000 and one Bitcoin (valued at $23,000 at the time) to the scammers, Lawrence is now seeking legal redress. He noted that the logs of his online conversations 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 emphasized. “It was then that I reached out to my law firm to seek assistance in resolving this situation.”

Lawrence started his company with a focus on charitable initiatives and community engagement, aiming to educate the community about the positive impacts of Decentralized Finance (DeFi). He took a stand against “bad actors” in the cryptocurrency industry.

In his filing, Lawrence stated that he had a good reputation within the cryptocurrency community and was on the path to becoming an industry leader. However, the stress from these events has had a significant impact on his health and finances.

“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,” he disclosed. “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.”

Following the public revelation of his case, Lawrence received an outpouring of support on Twitter and expressed his commitment to resolving the situation.

While scams using major cryptocurrency platform names are common, this lawsuit is a rare attempt to hold an exchange accountable. Glow Token alleges that even if the scam was orchestrated by third parties, they were able to exploit Crypto.com’s platform to deceive the startup. The company accuses Crypto.com of facilitating the fraud due to inadequate security measures.