Crypto Influencer Files $16 Million Lawsuit Against Crypto Exchange Bitget
Another cryptocurrency exchange is now struggling with a lawsuit, Bitget Exchange in this instance. However, the lawsuit is brought by a crypto influencer named Evan Luthra. He has charged the exchange for freezing his trading account after a new token listing happened in March.
On the other hand, Bitget officials have maintained that the exchange was hit by a group of traders that were trying to manipulate the trading balance on the platform.
Plaintiff asserted that all his withdrawal requests were denied and he ended up losing around $200,000 in the form of USDT that was locked up. He has also maintained that exchange executives did not respond to his queries regarding the account freezing.
The matter seems to be related to the engagement of Luthra with a new social media startup called Reel Star. According to Luthra, he is currently working on the exchange platform in the capacity of advisor.
Bitget Says Luthra’s Account was Suspended on Account of Market Manipulation
Luthra disclosed that he received a massive amount of REELT tokens from the new social media startup. He proceeded to sell around 1.3 million REELT tokens on Bitget platform that led to suspension of his account.
The Bitget officials have maintained that his account was frozen on account of market manipulation threat. The firm has asserted that officials have tried to get in contact with Luthra but he has not been able to provide a valid reason for the massive token sales.
Meanwhile, Luthra has revealed approval for the token sales from Reel Star co-founder Navdeep Sharma. At present, he is seeking $16 million in damages in addition to the freedom of $200,000 worth of USDT under custody of Bitget.
His lawsuit addresses Bitget exchange, Foresight Ventures, and other key executives. He has argued that Bitget has unfairly imposed restrictions on his trading account that he has been operating as per standardized trading practices.
Gracy Chen is the managing director at Bitget exchange. He has responded to the matter by claimed that the firm tend to restrict any sort of illegal activities on the trading platform in the interest of all its account holders.
To this effect, the firm has opened an investigation regarding the matter and shared a compensation plan for 500 consumers who were affected by this issue. He claims that as per the investigation the firm has listed Luther’s account among those that were involved in suspicious activities.
The matter has sparked a discussion regarding the ongoing issue that highlights the challenges consumers face on CEXs. At the same time, this matter also speaks volumes about hurdles for exchanges like Bitget in ensuring safety for their clients.
Luthra has maintained that he was only acting under the capacity of a token bearer and should not be included in the project team.
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