Glow Token LLC has filed a lawsuit against Crypto.com, one of the industry’s largest exchanges, after its CEO, Bryan Lawrence, was scammed by individuals posing as Crypto.com employees. Lawrence, who had been negotiating to list Glow’s cryptocurrency on the exchange, transferred $250,000 plus one Bitcoin to an account he believed belonged to Crypto.com. In March, he was informed by the real Crypto.com that imposters had deceived him.
Lawrence asserts that he conducted thorough due diligence and directly verified every step with Crypto.com. He checked the listing link on their website, reviewed all received emails, confirmed contact information, and examined the actual listing contract. Despite his precautions, Lawrence lost the money and had to sell his cherished home to cover court costs, leading to significant personal and financial distress.
Accusations of negligence and lack of security protocols against Crypto.com
The lawsuit accuses Crypto.com of breach of contract and claims over $250,000 in damages. Glow Token alleges that even if the scam was conducted by third parties, they managed to compromise and use Crypto.com’s platform to deceive the startup. The company accuses Crypto.com of enabling fraud due to a lack of security protocols.
Lawrence’s situation has caused both financial and health issues. He has been hospitalized four times for significant stomach problems, which he attributes to the stress from the events. He is currently consulting with specialists to find a solution to his health problems.
The legal action against Crypto.com comes after recent reports that the exchange’s use of internal traders could prompt regulatory notice. On June 19, reports indicated that Crypto.com allegedly employs internal teams for market making and proprietary trading, though the exchange’s executives strongly deny the company’s involvement in trading.
The case represents an unusual effort to hold an exchange legally responsible for scams using the names of major crypto platforms. While scams of this nature are common, the lawsuit highlights the potential vulnerabilities in the crypto space and the need for robust security measures.
In the aftermath of the scam, Lawrence has taken his case public and received support on social media. He assures everyone that he will give his all to ensure everyone is made whole again.