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Reel Token

<p>Bitget, the crypto exchange registered in Seychelles, finds itself entangled in a legal dispute with prominent crypto influencer Evan Luthra.</p><h2 id="header-0">Account freezing allegations</h2><p>The conflict stems from Luthra’s<a href="https://twitter.com/evanluthra/status/1687485217299222529" rel="noopener noreferrer nofollow"> allegations</a> of account freezing and loss of funds after a token listing incident in March. Luthra has filed a lawsuit against Bitget, accusing the exchange of withholding $200,000 in Tether (USDT) without adequate explanation, while also freezing his account.</p><p>The legal drama follows Luthra’s involvement with the Reel Star project, where he served as an advisor for the platform which is aimed at creators. As compensation for his collaboration with the project, Luthra received Reel Token (REELT), the project’s utility token.</p><h2 id="header-1">Bitget alleged market manipulation</h2><p>Upon the listing of REELT tokens, Luthra reportedly sold 1.3 million tokens on Bitget. In response, Bitget<a href="https://www.bitget.com/support/articles/12560603778479" rel="noopener noreferrer nofollow"> claims</a> it faced a manipulative attack orchestrated by a group of traders attempting to profit from market manipulation immediately after the token’s listing. This allegedly caused a significant drop in the token’s price, prompting Bitget’s decision to freeze Luthra’s account.</p><p>Bitget states that it contacted Luthra seeking an explanation for the suspicious trading behavior. Luthra acknowledged the token sale but failed to provide satisfactory reasons for his actions, according to Bitget’s version of events. The exchange maintains that user protection is its foremost priority and that it takes swift action against illegal or fraudulent behaviors.</p><h2 id="header-2">$16 million damages claim</h2><p>Luthra refutes the allegations, asserting his innocence and citing alleged approval from Reel Star’s Co-Founder Navdeep Sharma for his token sale plans. He seeks a substantial $16 million in damages, in addition to the frozen funds. Luthra claims that Bitget unjustly deprived him of his tokens, asserting his status as a fully KYCed user entitled to access his holdings.</p><p>In the aftermath of the incident, Bitget conducted an investigation and offered a compensation plan for affected clients. Gracy Chen, Bitget’s Managing Director, emphasized the exchange’s commitment to user protection and its actions against illicit activities on its platform. Addressing the matter on Twitter, Chen didn’t hold back in her commentary on Luthra,<a href="https://twitter.com/GracyBitget/status/1687651172721831936?s&#61;20" rel="noopener noreferrer nofollow"> stating</a> that he “has a history of fraudulent activities,” which she says were exposed by crypto journalist CoffeeZilla.</p><p>The legal dispute has ignited debates within the crypto community. Supporters of Luthra contend that his case underscores broader issues faced by users of centralized exchanges, shedding light on the need for improved user rights and protection. On the other hand, some argue that Bitget acted appropriately to safeguard its users and the market integrity.</p><h2 id="header-3">CZ brought into the dispute</h2><p>The legal battle has attracted attention from influential figures in the crypto industry. Against a backdrop of a very public airing of the dispute on Twitter, in a recent<a href="https://twitter.com/cz_binance/status/1643998978730770432?s&#61;20" rel="noopener noreferrer nofollow"> tweet</a> Luthra invited Changpeng Zhao (CZ), the CEO of Binance, to respond to Luthra’s claim that Bitget spreads rumors about other exchanges. CZ was having none of it, writing: “You should talk to them, right? We are not a regulator for other exchanges.”</p><p>The case highlights the intricate challenges surrounding market manipulation and token listings within the crypto space. As it unfolds, the outcome could potentially set a precedent for similar situations involving token listings, market manipulation, and user protection.</p>

Dispute Embroils Bitget in Legal Battle With Crypto Influencer

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