Evan Luthra, an influencer, is now facing a lawsuit from exchange Bitget over a new token listing in March. Luthra clarified that he was working in the capacity of an advisor and received a substantial number of REELT tokens from a social media startup, Reel Star. Subsequently selling around 1.3 million of those tokens on Bitget platform is reportedly what triggered the exchange to freeze inflicted a $200,000 loss.
According to officials, the account was frozen to protect other customers well as imminent threats of market manipulation centered around the account. However, Luthra stands by the withdrawal requests he put through, alleging that executives have not responded. He is currently suing the exchange for nonaudrock of duties and seeks a reimbursement of $16 million, as well as the state of his $200,000 instrumentations remaining held.
Gracy Chen, managing director at Bitget, responded to the matter declaring any violations at their regard against existing regulations w ill not be tolerated, while an investigation hypothetically ensued to issue a compensation plan for 500 consumers who were affected. Regarding Luthra’s status, results determinered from the investigation designated it as illegitimate as per also spokesperson from Foresight Ventures.
The case points to enduring issues users face while interacting with centralized exchanges while also posing challenges for PLATfroms such as Bitget to protect customers. From Luther’s point of view, any infringement realized or suspected with entertainment companies making claims about such particulars is being disregarded.