Bitget and crypto influencer embroiled in legal saga after Reel Star token listing fiasco
Aug 18. 2023
By Ana Paula Pereira
Evan Luthra says Bitget froze his account in April. The exchange claims it was done on suspicions of market manipulation related to the sale of REELT tokens.
Crypto influencer Evan Luthra has brought a lawsuit against crypto exchange Bitget for freezing his account after a new token listing in March. According to Luthra, the exchange suspended his withdrawals and froze $200,000 in Tether (USDT$1.00) while attempts to seek clarification went unanswered.
Luthra’s involvement with the Reel Star project serves as a backdrop to these events. The influencer was hired as an adviser to Reel Star, a startup developing a social media app for creators. As compensation, Luthra was offered Reel Token (REELT), the project’s utility token. Upon its listing, the influencer sold 1.3 million REELT tokens on Bitget. Luthra’s account was then frozen under suspicion of market manipulation. Regarding the decision, a spokesperson from Bitget told Cointelegraph:
“Bitget faced a manipulative attack by a group of traders attempting to profit by manipulating trades on the exchange. Their target was a new coin called REELT, which they tried to dump immediately after its listing on Bitget, causing a large drop in the coin’s price.“
Additionally, Bitget claims to have contacted the crypto influencer 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 active feedback or satisfactory response.“
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