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Update (Aug. 18 at 2:09 pm UTC): This article has been updated with both sides\u2019 perspectives and additional information. Further commentaries are expected from both sides.<\/em><\/p>\n Crypto influencer Evan Luthra has brought a lawsuit against crypto exchange Bitget for freezing his account after a new token listing in March. According to Luthra, the exchange suspended<\/a> his withdrawals and froze $200,000 in Tether (USDT<\/a>) while attempts to seek clarification went unanswered.\u00a0<\/p>\n Luthra\u2019s involvement with the Reel Star project serves as a backdrop to these events. The influencer was hired as an adviser to Reel Star, a startup developing a social media app for creators. As compensation, Luthra was offered Reel Token (REELT), the project\u2019s utility token. Upon its listing, the influencer sold 1.3 million REELT tokens on Bitget. Luthra\u2019s account was then frozen under suspicion of market manipulation. Regarding the decision, a spokesperson from Bitget told\u00a0Cointelegraph:<\/p>\n \u201cBitget 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\u2019s price.\u201c<\/p><\/blockquote>\n Additionally, Bitget claims to have contacted the crypto influencer for an explanation: \u201cIn response, he admitted to selling the tokens. However, when we asked for the reasons behind this abnormal behavior, we did not receive active feedback or satisfactory response.\u201c<\/p>\n Luthra claims innocence, citing Reel Star co-founder Navdeep Sharma\u2019s alleged approval of his token sale plans. The influencer now seeks a substantial $16 million in damages, along with the $200,000 held in his account. His lawsuit encompasses Bitget, Foresight Ventures and key executives.<\/p>\n Finally, I just served Bitget $16,000,000+ for the damages and money they stole from me.<\/p>\n They are boldly disregarding the laws and regulations & continuing their scam.<\/p>\n But, we won’t stop.<\/p>\n If you have funds in Bitget, take them out before they go down.<\/p>\n Here’s why: pic.twitter.com\/EHOiYREoMN<\/a><\/p>\n \u2014 EvanLuthra.eth (@EvanLuthra) August 4, 2023<\/a><\/p><\/blockquote>\n \u201cBitget prevented me, a fully KYCed [Know Your Customer] user of their platform, from withdrawing my tokens,\u201d Luthra stated to Cointelegraph, adding:<\/p>\n \u201cAfter I sold this portion of my allocated tokens, my funds \u2014including the crypto […] I already had on the exchange before REELT \u2014 were blocked, and the company stole what my tokens were worth for themselves.\u201c<\/p><\/blockquote>\n According to Gracy Chen, Bitget\u2019s managing director, the exchange previously\u00a0announced<\/a>\u00a0an investigation into the case, disclosing the findings weeks later along with a compensation plan for more than 500 clients using both the company\u2019s own funds and funds from frozen transactions.<\/p>\n \u201cAt Bitget, user protection is our top priority. When we detect any illegal or fraudulent behaviors on our platform, we take immediate action,\u201d she wrote in a post on Aug. 4, saying the exchange had not been notified of the lawsuit at that time.<\/p>\n Some recent news mentioning a potential lawsuit about us from one advisor of REELT project, contains both facts and FUDs. Regarding the “abnormal trading behavior” of the REELT token back in April, we have announced the investigation results and user compensation plan in our\u2026<\/p>\n \u2014 Gracy Chen @Bitget (@GracyBitget) August 5, 2023<\/a><\/p><\/blockquote>\n In response to Chen, Luthra noted that he was just an \u201cordinary user who received the tokens as compensation for a consultation\u201d and should not be considered part of the project team.\u00a0<\/p>\n I am an ordinary user who received tokens as compensation for consultation, just as you received tokens for listing.<\/p>\n 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\u2026<\/p>\n \u2014 EvanLuthra.eth (@EvanLuthra) April 6, 2023<\/a><\/p><\/blockquote>\n In a blog post, Bitget issued<\/a> a response\u00a0to the event and said it was in communication with Luthra shortly after the event took place. The exchange explained the reasoning behind its actions: \u201cAfter our investigation, we believe the account mentioned has been involved in suspicious trading behaviors on Bitget.\u201c\u00a0<\/p>\n On X (formerly Twitter), crypto community members expressed mixed reactions to the lawsuit. While some of Luthra\u2019s supporters observed<\/a> that the case exposes common issues faced by users of centralized crypto exchanges, others claimed otherwise, saying<\/a> Bitget acted correctly by protecting its users.<\/p>\n Best support by cex exchange in the #Crypto<\/a> ecosystem is always more important than their services. \u2014 AmanSai (@amansaiofficial) August 4, 2023<\/a><\/p><\/blockquote>\n Several prominent figures from the crypto community jumped in to have their say on the matter, including\u00a0Changpeng Zhao, the CEO of Binance.\u00a0<\/p>\n You should talk to them, right? We are not a regulator for other exchanges.<\/p>\n \u2014 CZ Binance (@cz_binance) April 6, 2023<\/a><\/p><\/blockquote>\n\n
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Similar it doesn’t matter that you have made best product but if you don’t have enough good service center then it is worthless.
Without support the product and services is\u2026<\/p>\n\n