Token creator Bryan Lawrence, who had hoped to list his token on the major cryptocurrency exchange Crypto.com, reportedly sold his house to initiate a legal battle instead. He alleges negligence against the exchange.
“The stress from these events has caused significant stomach issues, leading to four hospitalizations,” Lawrence states.
Lawrence Blames Lack of Security Measures
On Aug. 18, Bryan Lawrence, founder of Glow Token, made a statement on X (formerly Twitter), to reveal that he has taken legal action against Forix Dax, the parent company of major cryptocurrency exchange crypto.com, citing negligence.
He alleges that either an employee, or an external party, compromised the company’s internal communications to take advantage of the “lack of security protocols,” to swipe funds that he set aside for the launch of Glow’s new token, FLARE.
Despite alleging that he conducted due diligence throughout the listing process by directly verifying every step with crypto.com, and reviewing the listing contract, he later learned that he had never been in contact with official employees at all.
He claims that on Mar. 16 he received correspondence from the exchange that he had fallen victim to a scam. After calling the exchange to verify chat logs in order to confirm the legitimacy of his transactions, the exchange reportedly revoked his access. Soon after, he reportedly received a cease and desist letter.
Lawrence states that the situation has caused him both financial and health issues.
“I had to sell my cherished home. This decision was not easy, as my home held great personal value” Lawrence states.
Lawrence is reportedly undergoing treatment for his ongoing stomach issues, which he claims are a direct result of the news.
“I am currently consulting with specialists in the hope of finding a solution to my health problems,” Lawrence states.
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Crypto.com Recent Conflict of Interest Concerns
This comes after recent reports that Crypto.com use of internal traders could prompt a regulatory notice.
On June 19, reports indicated that Crypto.com allegedly employs internal teams for market making and proprietary trading.
However, the use of internal traders at the exchange has not been disclosed to the public.
Crypto.com executives reportedly strongly deny the company’s involvement in trading.
Furthermore, employees reportedly received instructions to claim that no internal market maker operation ever existed.
