The Commodity Futures Trading Commission has initiated an investigation into potential fraudulent activities involving 15 different tokens, including the memecoin BEN. The agency issued a subpoena to Hit Network, a crypto-centric media company associated with Ben Armstrong, known in the crypto community as “BitBoy.” The investigation focuses on individuals suspected of engaging in fraud and other illicit activities related to digital currencies. Tokens frequently featured in Armstrong’s videos were mentioned in the subpoena, although his name was not directly mentioned. Armstrong promoted these tokens extensively, claiming they had the potential for significant value increases.
Armstrong’s relationship with Hit Network ended tumultuously in August 2023, when he was ousted by the current CEO amid allegations of substance abuse. Armstrong denies hard drug use but admits to using diet pills and steroids. Following his departure, Armstrong was arrested for attempting to reclaim a disputed Lamborghini from a former business partner, leading to legal battles with Hit Network. Armstrong alleges that his former colleagues took financial control of the BitBoy Crypto brand in 2020, maintaining that he has been betrayed and warning that others in the industry will face consequences.
During his time at Hit Network, Armstrong was known for hosting YouTube videos in which he recommended various tokens, promising significant financial returns. Many of these tokens experienced declines in price. Armstrong admits to participating in paid promotions of crypto projects, some of which turned out to be scams, though he claims these promotions were unintentional. He paid a blockchain investigator $10,000 for exposing his undisclosed promotions. One of the tokens mentioned 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 but later parted ways with the project.
Armstrong’s involvement with BEN reportedly contributed to his departure from Hit Network, as other executives were opposed to the token being associated with their business. The investigation into potentially fraudulent cryptocurrency activities is ongoing, with the CFTC demanding information regarding trading activities and digital wallets connected to the 15 tokens. Armstrong has made public statements alleging betrayal by his former colleagues and warning of consequences for those in the industry who turned against him. Despite the controversy surrounding his involvement with tokens and allegations of fraudulent activities, Armstrong continues to deny any intentional wrongdoing and claims that his promotions were made in good faith.
In conclusion, the investigation into potential cryptocurrency fraud involving 15 tokens, including BEN, has led to a subpoena being issued to Hit Network, a company associated with Ben Armstrong. Armstrong’s tumultuous departure from Hit Network, as well as his legal battles and allegations of substance abuse, have added to the controversy surrounding the situation. Armstrong’s involvement in promoting various tokens and his subsequent denial of intentional wrongdoing have raised questions about the ethical implications of paid promotions in the crypto industry. The ongoing investigation by the CFTC is expected to shed light on the extent of fraudulent activities in the cryptocurrency market and may have implications for regulations and oversight in the industry.
