Crypto Startup Sues Crypto.com Exchange After Falling Victim to Scam
• Cryptocurrency startup Glow Token LLC filed a lawsuit against Crypto.com exchange for a recent fraud.
• The startup claimed breach of contract, negligent infliction of emotional distress and other charges.
• Glow Token wants the missing funds returned and compensation for the harm caused to CEO and business.
Cryptocurrency Startup Sues Exchange After Falling Victim to Scam
A cryptocurrency startup, Glow Token LLC has recently filed a lawsuit in a US court against the Crypto.com exchange over a recent fraud, alleging negligence and breach of contract.
Details of the Lawsuit
The lawsuit was filed on August 10th with Judge Jose Martinez assigned to it from Florida Southern District Court, and last updated on August 21st. The startup accused Crypto.com for breach of contract, negligent infliction of emotional distress, fraudulent inducement, negligent misrepresentation, vicarious liability and unjust enrichment.
Background Information
Earlier this year, CEO Bryan Lawrence had discussed listing Glow Token’s (FLARE) coin on Crypto.com with certain individuals claiming to be staff from the exchange’s end. In March, Lawrence transferred funds worth $250k USD plus BTC 1 (worth $23k USD). However, later that month Crypto.com told him there was no agreement about listing the coin and he had been scammed by those imposters posing as their employees instead. Despite informing Lawrence to stop claiming an existing agreement about listing FLARE crypto-coin; his lawyers argued in an August 17th letter that legal action resulted from failed launch of FLARE token scheduled on April 1st 2023 due to lack of security protocols & safeguards employed by Crypto-exchange resulting in loss of investor funds & harm caused to Glow Token’s reputation.
What is Being Demanded?
Glow Token demands return of stolen funds along with compensation for damage suffered by CEO & business due to this incident which could have been avoided if proper security protocols were implemented by Crypto-Exchange beforehand preventing any such scam or frauds in future as well as providing relief from present situation occurred due to negligence & cybercrime activity led by bad actors compromising internal communication system set up at exchange end creating huge financial losses!
Conclusion
Consequently it can be concluded that even after taking all necessary precautions while dealing with exchanges like Crypto; one should always double check before making any investments or transferring money online ensuring safety & security measures are properly implemented beforehand!