Evan Luthra, a highly esteemed blockchain influencer and successful entrepreneur featured in Forbes’ “30 Under 30,” has taken legal action against the crypto exchange Bitget.
The lawsuit amounts to $16 million and includes allegations of theft, defamation, and market manipulation. This information was reported by Cryptopolitan. The case has garnered significant attention within the crypto community and financial industry.
Background
In April 2023, Luthra claimed that over $200,000 had been stolen from his Bitget account. He alleges the exchange then blocked his account and spread “lies” about him instead of addressing the issue.
Frustrated by Bitget’s responses, Luthra decided to take legal action. On July 27, he filed a lawsuit against Bitget and its parent company in the New York State Supreme Court.
The lawsuit seeks $16 million in damages from Bitget for four counts of alleged wrongdoing:
- Theft of Luthra’s funds
- Defamation and spreading “lies” about Luthra
- Manipulation of the REELT digital asset and engaging in market fraud
- Violating financial regulations
Alleged Theft of Funds
Luthra claims in the lawsuit that Bitget “intentionally failed to secure” his funds, leading to their theft after his account was blocked.
He alleges Bitget’s response was not an apology or resolution, but instead “a counterattack” spreading “deceptive and defamatory” statements aimed at damaging his reputation.
The suit seeks compensation for both the direct loss of funds as well as the “consequential damages” caused by Bitget’s actions, totaling over $16 million.
Accusations of REELT Manipulation
The lawsuit also accuses Bitget of manipulating the digital asset REELT, engaging in “fraudulent activities” that harmed Luthra’s advisory business and cost him “many, many more millions” beyond the $200,000 allegedly stolen.
If proven, Bitget’s actions could represent a profound breach of trust within the cryptocurrency community, according to Luthra.
Alleged Regulatory Violations
Finally, Luthra alleges that Bitget failed to comply with important anti-money laundering and “Know Your Customer” regulations, operating above the law.
Bitget has not yet responded publicly to Luthra’s lawsuit. The exchange has until August 27 to file a response in court.
Takeaways
In summary, Evan Luthra’s $16 million lawsuit against crypto exchange Bitget alleges:
- Theft of over $200,000 from Luthra’s account
- Spreading of “defamatory lies” about Luthra instead of addressing the issue
- Market manipulation involving the digital asset REELT which cost Luthra “many millions” in losses
- Multiple violations of financial regulations by Bitget
The suit seeks to not only recover Luthra’s direct losses but also the “consequential damages” caused by Bitget’s alleged actions. If Luthra’s claims are substantiated, they suggest a serious breach of trust and disregard for regulations by one of the world’s largest crypto exchanges.
Bitget has not yet publicly responded to the lawsuit, with a deadline of August 27 to file a response in New York state court.
