Update (Aug. 18 at 2:09 pm UTC): This article has been updated with both sides’ perspectives and additional information. Further commentaries are expected from both sides.
Crypto influencer Evan Luthra has filed a lawsuit against crypto exchange Bitget for freezing his account following a token listing in March. Luthra claims that the exchange suspended his withdrawals and froze $200,000 in Tether (USDT) while ignoring his attempts to seek clarification.
Luthra’s involvement with the Reel Star project is relevant to this incident. He was hired as an advisor to Reel Star, a startup developing a social media app for creators. As compensation, Luthra received Reel Token (REELT), the project’s utility token. When REELT was listed, Luthra sold 1.3 million tokens on Bitget, which resulted in his account being frozen under suspicion of market manipulation. Bitget’s spokesperson commented:
“Bitget faced a manipulative attack by a group of traders attempting to profit by manipulating trades on the exchange. Their target was a new coin called REELT, which they tried to dump immediately after its listing on Bitget, causing a large drop in the coin’s price.”
In response, Bitget claims to have contacted Luthra for an explanation but did not receive satisfactory feedback or response. On the other hand, Luthra claims innocence and points to Reel Star co-founder Navdeep Sharma’s alleged approval of his token sale plans. He is now seeking $16 million in damages and the release of the $200,000 held in his account. The lawsuit includes Bitget, Foresight Ventures, and key executives as defendants.
According to Bitget’s managing director, Gracy Chen, the exchange has conducted an investigation into the case and has provided a compensation plan for affected clients using both the company’s own funds and frozen transactions. Chen emphasized that user protection is a top priority for Bitget.
In response to Chen’s statement, Luthra stated that he is an ordinary user who received tokens as compensation for consultation and should not be considered part of the project team.
Bitget has issued a response to the event, explaining its actions and stating that the account in question was involved in suspicious trading behaviors. The exchange has received mixed reactions from the crypto community, with some supporting Luthra and others defending Bitget’s actions.
Various prominent figures from the crypto community, including Binance CEO Changpeng Zhao, have weighed in on the matter.
- Crypto influencer Evan Luthra has filed a lawsuit against crypto exchange Bitget for freezing his account after a token listing.
- Luthra sold 1.3 million Reel Token (REELT) on Bitget, resulting in his account being frozen under suspicion of market manipulation.
- Bitget claims Luthra’s account was involved in suspicious trading behaviors.
- Luthra seeks $16 million in damages and the release of $200,000 held in his account.
- The crypto community has mixed reactions to the lawsuit, with some supporting Luthra and others defending Bitget’s actions.