Hackers Spark Glow Token Vs. Crypto.com Court Case

21 Aug 2023 by Rory Kejzerko 2 min read

Crypto’s latest fraudulent instalment comes by way of Glow Token CEO Bryan Lawrence, who is suing Crypto.com for damages worth $250,000.

To paint a picture of this unique case, we first have to go back to the beginning of the year when Lawrence was initially approached by supposed Crypto.com employees. Here, the CEO was asked whether he’d like to have the platform’s native token $FLARE listed on the industry leading exchange (and therefore have it offered to its 70+ million users).

After a month or so of deliberation, Lawrence eventually gave the proposal the go-ahead, which then saw him transfer over $250,000 to the exchange, as well as 1 Bitcoin ($BTC) valued at around $23,000 at the time.

Sounds all fine and dandy right? Well, not exactly, as the account in recipient of the funds ‘Foris Dax, Inc.’ turned out to be a scam operation led by a cohort of bad actors…

That is, despite Lawrence conducting a rather thorough security process before making the call:

"I conducted my due diligence and directly verified every step with Crypto.com. 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." - Bryan Lawrence via an announcement of the lawsuit.

Lawrence’s unfortunate mishap was later revealed in March by Crypto.com itself, which stated that it had never formed an agreement to list $FLARE on the exchange.

In response, Glow Token has now decided to take legal action against Crypto.com, despite the exchange not being explicitly involved in the case. Such action has arisen through claims that Crypto.com are guilty of a breach of contract, as well as enabling fraud due to a lack of security protocols.

When it comes to the compensation in play here, Glow Token is asking for “return of the missing funds and additional compensation for the harm caused to both the CEO and the business net worth and reputation”.

In practical terms, this accounts for the initial transfer of $250,000+ worth of funds, the sale of Lawrence’s ‘cherished’ home, and the fact that he’s been admitted to hospital on four separate occasions due to the effects of stress on his stomach complications.

With the Florida Court case filing only being made last week, we’ll have to wait and see how this ordeal gets resolved. For now, however, it’s interesting to contemplate Crypto.com’s accountability in the matter, and whether its ‘allowance for third party bandits to compromise its platform’ should make it guilty as charged.

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