The Commodity Futures Trading Commission (CFTC) is investigating possible fraudulent cryptocurrency activities involving 15 different tokens, including the memecoin BEN.
Subpoena Issued to Hit Network
This investigation led the CFTC to issue a subpoena to Hit Network, a crypto-focused media company once associated with Ben Armstrong, also known as “BitBoy” in the crypto community. On July 16, the CFTC demanded information from Hit Network regarding trading activities and digital wallets connected to these 15 tokens.
Focus on Suspected Fraudulent Activities
The subpoena indicates that the agency’s investigation targets individuals suspected of fraud and other illicit activities related to digital currencies. Although Armstrong’s name isn’t mentioned, the tokens under scrutiny were frequently featured in his videos. Armstrong promoted these tokens extensively, claiming significant potential returns.
Armstrong’s Involvement and Departure
Most of the videos promoting these tokens, except for those about BEN, appeared under the BitBoy Crypto brand before or during March 2021. This period coincided with the formation of Hit Network, where Armstrong was the main host. Armstrong’s relationship with Hit Network ended in August 2023 amid allegations of substance abuse. He later admitted to using diet pills and steroids but denied using hard drugs. After his departure, Armstrong was arrested for attempting to reclaim a disputed Lamborghini from a former business partner. Now, he is in legal battles with Hit Network regarding his removal and the vehicle.
Armstrong’s Claims Against Former Colleagues
Armstrong has publicly claimed that his former colleagues took financial control of the BitBoy Crypto brand in 2020. He reiterated these accusations online, stating, “All I have asked for over a year is for people to listen to me. Everyone in this industry almost turned on me. And now, many of those people will begin to feel the weight of their betrayals as many of them will end up connected.”
Paid Promotions and Legal Issues
During his time at Hit Network, Armstrong hosted YouTube videos recommending various tokens, often promising significant financial returns. However, many of these tokens saw price declines. Armstrong admitted to participating in paid promotions of crypto projects, some of which turned out to be scams. He claims these promotions were unintentional. He notably paid blockchain investigator ZackXBT $10,000 for exposing his undisclosed promotions.
The Memecoin BEN and Its Impact
One of the tokens highlighted in the CFTC’s subpoena is BEN, a memecoin launched by an anonymous influencer known as ben.eth on May 5, 2023. Armstrong announced his involvement with BEN shortly after its creation and later became its CEO. However, he parted ways with the project on June 5. According to sources close to Hit Network, Armstrong’s involvement with BEN contributed to his departure from the company, as other executives opposed the token being associated with their business.
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