Evan Luthra, a well-known entrepreneur and crypto influencer, has taken legal action against Bitget, a cryptocurrency exchange, asserting that his account was unlawfully frozen in the midst of the REELT token controversy. Luthra, who was recently recognized by Forbes as part of its 30 Under 30 list, is claiming over $16 million in damages. This move follows allegations that Bitget’s actions infringed upon Luthra’s rights and impeded his advisory role in the ReelStar token project.
Luthra, with a substantial online presence boasting almost 100,000 Twitter followers and 2 million on Instagram, made his intention to initiate legal proceedings against Bitget public through a Twitter announcement. The decision stems from Bitget’s reported freezing of Luthra’s account immediately after the REELT token listing. According to Luthra, this action not only violated his rights but also cast a shadow on his position as an advisor in the ReelStar token initiative.
Evan Luthra was actively involved with ReelStar, a startup focused on creating a blockchain-based social media app for content creators. His involvement encompassed endorsing the project and receiving compensation in the form of REELT tokens. Beginning his advisory role in October 2022, Luthra was committed to receiving 150 million REELT tokens over a 20-month period. Acting in accordance with this agreement, Luthra received 7.5 million tokens, out of which he sold 1.3 million on Bitget, a cryptocurrency exchange registered in Seychelles. This action marked the commencement of the dispute.
In response, Bitget took the decision to freeze Luthra’s account, attributing their action to concerns about potential market manipulation and token dumping. The exchange pointed out that several accounts, including Luthra’s, had sold over 2 million REELT tokens shortly after their listing, leading to a substantial price drop of 60%. In light of these events, Bitget expressed their intention to collaborate with relevant authorities to explore the possibility of illegal activities, such as insider trading or market manipulation.
In opposition to Bitget’s stance, Luthra refuted the allegations, asserting that he had obtained explicit approval from ReelStar’s CEO, Navdeep Sharma, prior to selling his tokens. He emphasized that his actions were in line with industry norms and pointed out that other exchanges, including MEXC and Gate, had not raised any objections to his token sales.
Evan Luthra has subsequently initiated legal proceedings against Bitget, seeking damages totaling $16 million, along with the release of $200,000 that remains inaccessible due to the account freeze. Luthra contended that Bitget not only directly retained $200,000 but also caused him indirect financial loss running into millions.
The lawsuit’s purpose is to bring transparency to the situation and hold Bitget accountable for what Luthra perceives as an unjustified account freeze. Meanwhile, Gracy Chen, Bitget’s Managing Director, acknowledged the legal action on Twitter and indicated that the lawsuit contains both factual elements and speculative claims. Chen clarified that Bitget had not received any formal court notices in relation to the matter and underscored the platform’s right to counter any unfounded information.
As the cryptocurrency community closely observes this legal dispute, prominent crypto influencers, leaders, and enthusiasts are showing keen interest in the unfolding developments. The incident raises discussions about accountability, due process, and regulatory frameworks within the digital asset domain.
Disclaimer: This article is intended for informational purposes only and is not to be construed as legal or financial advice. The content is based on information available as of the stated date, and subsequent developments may impact the presented context or details.
