Crypto Entrepreneur Evan Luthra Alleges Fund Seizure and Losses by Bitget Exchange: Lawsuit Underway
Summary:
Evan Luthra accuses crypto exchange Bitget of seizing funds and causing significant financial losses, leading to reputational damage. Luthra's allegations highlight concerns regarding Bitget's transparency and integrity. The exchange is also accused of sabotaging a token listing. Luthra's lawsuit aims to determine what legal duties crypto exchanges owe to their users.
Crypto Exchange Bitget Accused of Seizing Funds and Causing Millions in Losses
Evan Luthra, a prominent cryptocurrency entrepreneur, has come forward with allegations against Bitget, claiming that the exchange seized over $200,000 of his funds, resulting in significant financial losses and reputational damage. Luthra, who has previously been vocal about his support for cryptocurrencies and their potential for financial freedom, states that Bitget prevented him from withdrawing his tokens, despite being in compliance with Know Your Customer protocols.
Luthra's dispute with Bitget arose from his advisory role with the project ReelStar, where he was promised compensation in the form of the project's tokens. When it was time for ReelStar's native token, REELT, to be listed on exchanges, Luthra sold a small portion of his REELT holdings, only to have his funds blocked without explanation. Luthra and his attorney are now filing a lawsuit to determine whether Bitget unlawfully seized his funds.
The allegations against Bitget also raise concerns about the exchange's transparency and trustworthiness. Luthra draws parallels to the previous case of FTX, where the CEO reportedly moved customer funds without their knowledge or approval, leading to the bankruptcy of FTX Group. Luthra advises users to consider these parallels and asks important questions about Bitget's ownership and management.
Furthermore, Luthra highlights another incident involving Bitget, where the exchange was accused of sabotaging a token listing on its platform. GPT Guru, a project whose token was listed on Bitget, claimed that the exchange intentionally set the listing price significantly higher, causing a significant price drop and detrimental impact on the project's launch. Bitget initially agreed to compensate affected users but later deleted its messages and ceased communication.
These allegations and actions against Bitget raise concerns about the exchange's integrity and treatment of user funds. Luthra emphasizes the need for transparency and clear guarantees of expected behavior from cryptocurrency exchanges, especially in a time of market uncertainty and regulatory action. Luthra's lawsuit aims to shed light on the legal duties that crypto exchanges owe to their users.
Published At
8/24/2023 4:06:53 PM
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