A cryptocurrency startup is suing a major exchange for over $250,000 in damages after allegedly getting scammed, despite acknowledging the exchange may not have directly participated in the fraud.
Glow Token LLC has sued Crypto.com for breach of contract in a Florida court, seeking damages even though they acknowledge Crypto.com may not have directly conducted the scam. Glow Token claims they were the victim of a scam and that Crypto.com owes them compensation, despite admitting Crypto.com might not have been behind the actual fraud.
Earlier this year, Glow Token’s CEO Lawrence was approached by imposters posing as Crypto.com employees about listing Glow’s cryptocurrency on the exchange. After months of acting like they were negotiating and exchanging documents, Lawrence sent funds to an account thinking it was Crypto.com’s.
However, in March, the real Crypto.com informed Lawrence he had been scammed by imposters, and there was never any listing agreement. Crypto.com told him to stop saying there was a deal. But, Lawrence insisted he had carefully verified the deal was legitimate before transferring any money.
Lawrence maintains that before sending any funds, he diligently verified the deal’s legitimacy directly with Crypto.com, including checking their website, emails, contact info, required communication platforms, and the contract itself. Multiple Crypto.com representatives supposedly confirmed the details.
After sending over $270,000 to who he thought was Crypto.com, Lawrence is now suing for damages, even though the logs of his communications were deleted. Lawrence claims he kept copies of the conversations for verification purposes. So despite the deleted records, he asserts he still has evidence of originally confirming the deal with Crypto.com before transferring money to what turned out to be scammers impersonating the exchange.
