Evan Luthra Files Lawsuit: Cryptocurrency influencer Evan Luthra has taken legal action against Bitget, a crypto exchange, alleging that his account was frozen after a contentious token listing in March. Luthra claims that his withdrawal requests were ignored, and his $200,000 in Tether holdings were frozen by Bitget.
4. @cz_binance have a look at this.
This exchange tries spread rumours about their competitors. https://t.co/5mUdiwi0DU
— EvanLuthra.eth (@EvanLuthra) April 6, 2023
Background Involving Reel Star: Luthra’s involvement with Reel Star, a startup creating a social media app for content creators, is central to this dispute. As part of his advisory role, Luthra received Reel Token (REELT), the project’s utility token. Following the token’s listing, Luthra sold 1.3 million REELT tokens on Bitget, resulting in the suspension of his account due to alleged market manipulation.
I am an ordinary user who received tokens as compensation for consultation, just as you received tokens for listing.
Holding me responsible for the price drop or considering me a part of the project is an unreasonable assumption. I am no more involved in the project than you…
— EvanLuthra.eth (@EvanLuthra) April 6, 2023
Exchange’s Allegations and Response: Bitget claims that Luthra’s actions were part of a manipulative attack by traders attempting to exploit the REELT listing. They assert that a coordinated effort caused a rapid drop in REELT’s price. Bitget communicated with Luthra regarding the matter, during which Luthra admitted to selling the tokens but provided no satisfactory explanation for his behavior.
🚨 WARNING: Evan Luthra and members associated dumped their $REELT tokens on their followers when they got listed on @bitgetglobal, and tries to get away with it by blaming Bitget and @GracyBitget
— Whale (@WhaleChart) March 31, 2023
Luthra’s Defense and Lawsuit: Luthra maintains his innocence, citing approval from Reel Star’s co-founder for his token sale. He is seeking $16 million in damages and the release of the frozen $200,000. The lawsuit encompasses Bitget, Foresight Ventures, and key executives, asserting that the exchange unfairly restricted his account.
Exchange’s Investigation and Compensation Plan: Bitget undertook an investigation and subsequently disclosed findings and a compensation plan for over 500 affected clients. The plan utilizes both company funds and frozen transaction funds to compensate users. The exchange emphasizes its commitment to user protection and immediate action against fraudulent behavior.
Diverse Crypto Community Reactions: Reactions in the crypto community vary. While some view this case as shedding light on issues associated with centralized exchanges, others believe Bitget acted appropriately in safeguarding users. Prominent figures, including Binance CEO Changpeng Zhao, have weighed in on the matter.
In a concise legal battle, crypto influencer Evan Luthra contests Bitget’s freezing of his account post-token listing. The case underscores broader issues in the crypto landscape.
