Glow Token Founder Loses $250,000 in Scam, Sues Crypto.com

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A cryptocurrency startup is taking legal action against one of the industry's largest exchanges after falling victim to an apparent scam.

Glow Token LLC has filed a lawsuit in a Florida court against Crypto.com, accusing the major exchange of breach of contract and claiming it owes over $250,000 in damages—even while acknowledging that Crypto.com may not have been involved in the fraud.

According to court documents, Glow Token CEO Bryan Lawrence was approached earlier this year by individuals posing as Crypto.com employees about listing Glow's cryptocurrency on the exchange. After months of purported negotiations and document exchanges, Lawrence transferred the funds to an account he believed belonged to Crypto.com.

But in March, officials from the real Crypto.com informed Lawrence he had been scammed by imposters. Crypto.com said it had no record of a listing agreement with Glow Token, and told Lawrence to stop asserting as much. Lawrence, meanwhile, insisted that he was careful to ensure the deal was legitimate.

"I conducted my due diligence and directly verified every step with Crypto.com," he said in a letter announcing the lawsuit. "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 sent the scammers $250,000 plus one Bitcoin, then valued at $23,000, Lawrence is now seeking a legal remedy, even though he says the logs of his online chats 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 said in a statement. "It was then that I reached out to [my law firm] to seek assistance in resolving this situation."

(Source: Decrypt)