Evan Luthra, a blockchain influencer, has finally had enough of Bitget’s alleged charades and backdoor games. The 28-year-old has taken a stand against what he perceives to be a massive act of fraud and theft, through a colossal lawsuit of $16 million. So, let’s unpack.
Bitget’s betrayal: More than just numbers
It’s not just about the money for Evan. It’s about integrity, trust, and the principles that underpin the complex world of blockchain. When your crypto account with $200,000 gets blocked, and the platform responsible turns its back, it’s not just a loss— it’s a betrayal.
Bitget has been accused of nothing less than blatant theft. As Evan Luthra shared exclusively to Cryptopolitan, not only did this massive sum disappear from his account, but Bitget turned the tables, spreading lies instead of offering solutions.
Not one direct response to Luthra’s claims. No clarification, no communication, just a wall of falsehoods, according to him. He posted a Twitter thread about it back in April:-
A scandal bigger than you think: Understanding the $16m lawsuit
Let’s unravel what led to this legal bombshell. You can’t talk about this lawsuit without delving into the mysterious world of REELT, a digital asset that seems to be at the heart of the case.
Accusations of manipulation and fraud in connection to REELT have been thrown at Bitget by Mr. Luthra, casting a shadow over the platform’s credibility. Bitget’s alleged wrongdoings aren’t limited to one man’s account. This lawsuit brings forth four claims of wrongdoing. Let’s take a close look at them:-
Count One: Theft of Funds
Luthra’s lawsuit asserts that Bitget intentionally failed to secure his funds, leading to theft after the account was blocked. But it’s not just about the theft; it’s about Bitget’s subsequent behavior— deflection, denial, and a refusal to address the issue directly, said Luthra.
Count Two: Defamation and Lies
Bitget’s alleged response to the theft was not an apology, not a resolution, but a counterattack. According to Luthra, Bitget’s public statements were not only deceptive but a deliberate attempt to tarnish his reputation, so he is also coming after them for defamation.
Count Three: Manipulation of REELT and Market Fraud
The lawsuit extends into the murky waters of market manipulation. Luthra accuses Bitget of manipulating the digital asset REELT, engaging in fraudulent activities that have far-reaching consequences.
If these allegations are proven true, Bitget’s actions could represent a profound breach of trust within the cryptocurrency community.
Count Four: Regulatory Violations
The $16 million claim is not limited to personal grievances. It exposes Bitget’s alleged violations of essential financial regulations. From an alleged failure to comply with anti-money laundering protocols to the complete disregard of Know Your Customer guidelines, these allegations paint a picture of a platform that operates above the law.
Evan had over $200,000 in Bitget, a considerable sum of money. He claims they stole it, plain and simple. It’s the initial stab in the back, the first sign of betrayal.
The influencer said that Bitget didn’t just take his money; they blocked his account, effectively tying his hands and leaving him helpless. This wasn’t a mere transactional hiccup; it was a strategic move, a calculated act to rob him of control over his own funds.
Because of Bitget’s actions, Evan said he lost a huge advisory deal with a project, costing him millions more. He calls it an indirect theft, a ripple effect that turned a bad situation into a financial disaster. Hence the $16.5 million lawsuit, a sum that represents both the direct theft and the consequential losses.
In his words:-
So, overall they stole over $200,000 directly and then many, many more millions indirectly from me.
Luthra takes a stand
In the exclusive disclosure to Cryptopolitan, Luthra doesn’t just bare the facts; he reveals the agony, frustration, and unyielding determination to right a wrong.
“They never once responded directly to any of my claims. Only posted their own statement already filled with lies,” said Luthra, his words seething with rightful anger.
Luthra and REELT, once allies, are now foes. Deals were made, promises were broken, and trust was shattered. What was supposed to be a partnership turned into a battlefield, with Luthra on one side, REELT and Bitget on the other.
Bitget has until August 27th to respond to Luthra’s allegations, as stated in the court documents.
UPDATE
Bitget reached out to Cryptopolitan to clear some things up concerning this report, as they feel there are inaccuracies and unfounded allegations made against them. Here’s the inside scoop from Bitget, shedding light on a situation that has left the crypto community in shock.
Behind the accusations
Bitget acknowledges that suspicious activity occurred around the trading of REELT. They claim to have detected a manipulative attack on the exchange led by a group of traders attempting to profit by dumping the coin immediately after its listing, causing a massive price drop.
Their vigilant team acted promptly to halt operations with the coin and block the accounts involved in the attack. Bitget asserts the crypto influencer in question was a part of this suspicious activity, profiting nearly 214,000 USDT by selling 1.18 million REELT within two hours of listing.
They contend that when confronted, the influencer admitted to selling the tokens but failed to provide satisfactory reasons for his actions.
Bitget shared with us a blog post that they released a few months ago addressing the issue. In it is a carefully outlined rebuttal, armed with details, figures, and communication excerpts to back their claims.
Speaking to Cryptopolitan, the team said that they conducted an internal investigation into the allegations and insisted that they found no evidence to substantiate the influencer’ claims against the company.
Bitget proudly claims to be a responsible platform taking necessary action against suspicious trading behaviors that could harm the market.
In a table detailing the REELT tokens sold by various accounts, including the influencer’s advisor account, Bitget highlights the significant profits made within just the first two hours of listing.
They regard the influencer’s behavior as abnormal, further expressing disappointment at the misleading statements and dishonorable methods employed. Bitget stated:-
“Once we noticed the suspicious dumping, we reached out to the crypto influencer and asked for an explanation. In response, he admitted to selling the tokens. However, when we asked for the reasons behind this abnormal behavior, we did not receive a satisfactory response.”
Source: Bitget
Bitget’s response goes further than just defending its actions; it also touches on a broader issue within the crypto community. The exchange claims to be committed to maintaining a secure and fair trading environment.
They state that their actions against the influencer were in line with this commitment, and they acted promptly to address what they perceived as suspicious trading activity.
In any case, the influencer has sued Bitget and the court date is looming. Will the smoke clear to reveal the truth? Only time will tell. What we can guarantee is that Cryptopolitan will be here to cover it all, keeping you updated on every twist and turn of this crypto drama.
