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Token founder swindled in $250k scam, points finger at Crypto.com

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TL;DR Breakdown

  • Bryan Lawrence, the founder of Glow Token, has filed a lawsuit against Crypto.com after losing $250,000 and his home in a scam involving individuals posing as Crypto.com employees. He alleges negligence and a lack of security protocols on the part of the exchange.
  • The lawsuit accuses Crypto.com of breach of contract and claims over $250,000 in damages. Lawrence’s situation has also led to health issues, with four hospitalizations for stomach problems attributed to stress from the events.

Description

Glow Token LLC has filed a lawsuit against major cryptocurrency exchange Crypto.com, seeking over $250,000 in damages after falling victim to an apparent scam. According to court documents, Glow Token CEO Bryan Lawrence was approached by individuals posing as Crypto.com employees, who deceived him into transferring funds for listing Glow’s cryptocurrency on the exchange. The … Read more

Glow Token LLC has filed a lawsuit against major cryptocurrency exchange Crypto.com, seeking over $250,000 in damages after falling victim to an apparent scam. According to court documents, Glow Token CEO Bryan Lawrence was approached by individuals posing as Crypto.com employees, who deceived him into transferring funds for listing Glow’s cryptocurrency on the exchange. The scammers managed to obtain $250,000 plus one Bitcoin from Lawrence, who later discovered he had been duped by imposters.

Lawrence, who started his company focusing on charity and community education, asserts that he conducted thorough due diligence and directly verified every step with Crypto.com. However, in March, officials from the real Crypto.com informed Lawrence that he had been scammed, and they had no record of a listing agreement with Glow Token.

The situation has had severe consequences for Lawrence, both financially and health-wise. He had to sell his cherished home to cover court costs, and the stress from the events led to significant stomach issues, resulting in four hospitalizations.

According to the court document, Lawrence asserts: “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, 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.”

Glow Token founder accuses Crypto.com of negligence and lack of security protocols

In the lawsuit filed in a Florida court, Glow Token alleges that Crypto.com’s lack of security protocols enabled the fraud. The company accuses Crypto.com of negligence, claiming that either an employee or an external party compromised the company’s internal communications to take advantage of the security lapse.

Lawrence’s statement reveals that he had been in contact with what he believed were official employees of Crypto.com, only to learn later that he had fallen victim to a scam. After calling the exchange to verify chat logs and confirm the legitimacy of his correspondence, the exchange reportedly revoked his access and subsequently sent a cease and desist letter.

The lawsuit represents an unusual effort to hold an exchange legally responsible for a scam conducted by third parties. Glow Token alleges that the scammers managed to “compromise and use Crypto.com’s platform” to deceive the startup, pointing to negligence as the primary reason for the legal action.

The legal action against Crypto.com comes after recent reports that the exchange’s use of internal traders could prompt a regulatory notice. On June 19, reports indicated that Crypto.com allegedly employs internal teams for market making and proprietary trading, a practice not disclosed to the public. Crypto.com executives reportedly strongly deny the company’s involvement in trading, adding another layer of complexity to the exchange’s current challenges.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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