Crypto exchange Bitget is currently on the legal radar of influencer Evan Luthra due to account restrictions following a new token listing. Luthra recounted that, soon after the listing of ReelStar’s REELT token in March, the exchange suspended his withdrawals, leading to the immobilisation of approximately $200,000. Despite attempts to attain clarification, the influencer was met with silence.
The a href=/?s=ReelStar>ReelStar project creates an interesting backdrop for these events. Luthra’s advisory role in ReelStar sourced him REELT tokens, which he proceeded to sell on Bitget. His quick sell-off then led to the freezing of his account, with market manipulation being the platform’s primary suspicion.
While Luthra maintains his innocence, his swift token sale evidently alarmed Bitget. As a result, they reportedly said that, soon after the listing, Luthra’s account, along with three others associated with the ReelStar team, has seen a 60% drop in REELT price due to the notable sale of over 2 million tokens. Unfortunately, this occurrence has also stimulated community upset.
Currently, Luthra is suing for a substantial damage claim of $16 million, in addition to the $200,000 held in his account. The lawsuit is directed at Bitget, Foresight Ventures, and their primary executives.
Gracy Chen, Bitget’s director, has shared that user protection remains a chief priority for the exchange. However, the influencer alleges that he had approval from ReelStar’s CEO, Navdeep Sharma, for his intended plan to sell tokens. Retrospectively, both parties insist on their innocence, emphasizing the urgency for thorough regulations to mediate such circumstances in crypto exchanges.
In this increasing litigious climate, it is increasingly important for users to confidently navigate the nuances of crypto investment. The development of proper regulatory framework will facilitate disputes like these to be amicably resolved and avoid the legal headaches that inevitably arise with grey areas of legitimacy.
Source: Cointelegraph
