![]() ![]() Bitget’s managing director, Gracy Chen, stated that the exchange takes immediate action against illegal or fraudulent activities on its platform and had not been notified of the lawsuit. The lawsuit includes Bitget, Foresight Ventures, and their key executives. He is now seeking $16 million in damages and the release of the $200,000 held in his account. Luthra, however, claims innocence and alleges that the CEO of ReelStar approved his token sale plans. In response, Bitget froze Luthra’s account along with three other accounts associated with the REELT team. After the token was listed, Luthra sold 1.3 million tokens on Bitget, leading to suspicions of market manipulation. Luthra was a consultant for ReelStar, a startup developing a social media app, and received REELT tokens as compensation. According to Luthra, the exchange halted his withdrawals and locked $200,000 in Tether (USDT) without providing any explanation. The content also mentions a magazine article titled “Deposit risk: What do crypto exchanges really do with your money?”Ĭrypto influencer Evan Luthra has filed a lawsuit against Bitget, a cryptocurrency exchange, for freezing his account following a token listing in March. It also holds equity in other firms such as the crypto exchange Luno and advisory firm Foundry. ![]() However, the companies have recently reached a settlement agreement.ĭCG has a venture capital portfolio that includes Grayscale, Genesis, CoinDesk, and approximately 200 other crypto-related companies. Genesis is the largest unsecured creditor of FTX and its affiliates, with a debt of $226 million. The company estimated liabilities of $1 billion to $10 billion and assets in the same range at the time of filing. Genesis filed for Chapter 11 bankruptcy in January following liquidity issues in the bear market and the collapse of notable crypto firms, including 3AC and FTX crypto exchange. They have also stated that transactions between the companies were conducted at prevailing market interest rates and on an arm’s length basis. DCG has assured Bloomberg that the company is cooperating with regulatory bodies and investigative agencies as required. It is currently uncertain whether these investigations will result in formal complaints. Attorney Seth DuCharme is representing DCG in this case. The disclosure of the promissory note to investors and how it was handled is a key aspect of the investigation. Silbert claimed that this note resulted from DCG assuming liabilities from Genesis related to the collapse of the hedge fund Three Arrows Capital (3AC). ![]() Additionally, officials are examining a letter to shareholders from DCG’s founder and CEO, Barry Silbert, which mentions a $1.1 billion promissory note. DCG disclosed last year that it had received approximately $575 million in loans from Genesis. The investigation focuses on loans and other transactions conducted between the two companies. Federal prosecutors and the Securities and Exchange Commission are also involved, seeking interviews with individuals associated with both Genesis and DCG. The investigation is being carried out by New York Attorney General Letitia James, as reported by Bloomberg. Digital Currency Group (DCG) and its subsidiary, Genesis Global Capital, are currently facing scrutiny over their financial transactions. ![]()
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