U.S. Regulation

BitBoy Faces Lawsuit Over Fraudulent $BEN Token Promotions

Ben Armstrong, known as BitBoy Crypto, is facing a class-action lawsuit from investors who bought the $BEN token, alleging his promotions misled them. The lawsuit accuses Armstrong and his associates of promising big returns, only for many investors to suffer significant losses. The legal action comes amid an ongoing investigation by the Commodity Futures Trading Commission (CFTC) into potential fraud involving $BEN and 14 other cryptocurrencies.

On August 3, the CFTC subpoenaed Hit Network, a company once linked to Armstrong, to investigate trading activities and wallet connections related to these tokens.  Armstrong had promoted $BEN, which was launched in May 2023 by an influencer named ben.eth. He later became CEO of the project but stepped down in June 2023.

Armstrong has admitted to accepting payments for token promotions, some of which he claims were scams, though he insists the promotions were unintentional. His involvement with $BEN caused friction at Hit Network, eventually leading to his removal as host in August 2023.  Armstrong has also been dealing with personal issues, including allegations of substance abuse, which he partially acknowledged, and legal disputes over a Lamborghini with a former partner.

Armstrong is also involved in other legal battles, including a defamation suit he filed—and later dropped—against fellow influencer Atozy. With his reputation under fire, Armstrong faces serious scrutiny over his crypto-related activities.

Terron Gold

Recent Posts

Federal Reserve Moves to Tighten Stablecoin Oversight With New Customer Identification Requirements

The Federal Reserve has unveiled a new proposed rule that would require certain payment stablecoin issuers to…

7 days ago

HIVE Stock Surges 10% After Landing $220 Million Sovereign AI Infrastructure Deal in Canada

Shares of HIVE Digital Technologies jumped more than 10% after the company announced a major $220 million, three-year…

1 week ago

Illinois Becomes First State to Tax Bitcoin and Crypto Transactions as Critics Call It the Most Punitive Crypto Tax in America

Illinois has officially become the first U.S. state to impose a transaction-based tax on cryptocy activity…

1 week ago

FOMC Rate Decision Triggers $122 Million Crypto Liquidation Cascade as Bitcoin and Ethereum Slide

The cryptocy market was hit by a sharp wave of volatility after the Federal Open Market…

1 week ago

Algorand Targets Full Quantum Resistance by 2027 as Blockchain Industry Faces Growing Quantum Threat

Algorand is accelerating its push toward becoming one of the world's first fully quantum-resistant blockchains, announcing…

1 week ago

CLARITY Act Gains Momentum as Senate Prepares for Critical Post-Recess Vote

The long-awaited Digital Asset Market CLARITY Act is moving closer to becoming law as momentum continues building…

1 week ago