Ben Armstrong, widely known as “BitBoy Crypto,” and several associates are facing a class-action lawsuit from American $BEN coin holders alleging fraudulent activities.
A group of investors filed the lawsuit, naming Armstrong, Ashley (Cassie), and others as co-conspirators.
Crypto YouTuber BitBoy Faces Legal Heat Over $BEN Coin Promotions – Did He Mislead Investors?
Armstrong, a prominent crypto YouTuber, is accused of misleading investors through paid promotions of the $BEN memecoin.
The plaintiffs claim that Armstrong and his team promoted the token with promises of substantial returns, only for many of these investments to result in significant losses.
A class action lawsuit has been filed by a cohort of American $BEN coin holders who were defrauded.
Ben Armstrong (Bitboy), Ashley (Cassie) and all his co-conspirators are being named.
I’m not part of the suit but am helping the parties so Justice is served. All receipts have…— Nick Dimondi Egg Nog Maximalist (@NickDimondi) November 15, 2024
The accusations extend to his former collaborators, including individuals tied to BenCoin ATMs and influencers like Ajwritescrypto and JChainsX.
The lawsuit is bolstered by the claimants’ assurance that they have preserved evidence to substantiate their allegations.
This legal action follows the Commodity Futures Trading Commission (CFTC) ‘s ongoing investigation into fraudulent activities involving 15 cryptocurrencies, including $BEN.
On August 3, the CFTC subpoenaed Hit Network, a media company formerly associated with Armstrong, to probe trading activities and wallet connections related to these tokens.
The investigation has spotlighted Armstrong’s role in promoting $BEN and other tokens at Hit Network.
Armstrong has admitted to accepting payments for token promotions, some of which were scams. However, he insists that these endorsements were unintentional.
The $BEN token, launched on May 5, 2023, by an influencer known as ben.eth, gained traction after Armstrong publicly endorsed it.
He later took on the CEO role before exiting the project on June 5. Armstrong’s involvement with $BEN reportedly created friction within Hit Network, contributing to his removal as host in August 2023.
Armstrong’s departure from Hit Network came amid allegations of substance abuse, which he has partially acknowledged, admitting to the use of steroids and diet pills but denying harder substances.
His exit also involved a legal dispute over a Lamborghini with a former business partner, which led to his arrest.
Armstrong remains embroiled in multiple legal battles, including disputes with Hit Network over his ouster.
His promotion of $BEN and other tokens and the CFTC investigation have amplified scrutiny of his crypto-related activities.
Armstrong Apologizes for Legal Drama with Atozy – Is His Reputation at Stake?
Ben Armstrong recently filed and then dropped a defamation lawsuit against fellow influencer Erling ‘Atozy’ Mengshoel.
Armstrong apologized during a livestream, stating that he would “100%” drop the case and regretted the public attention it had garnered.
He explained that he had wanted to resolve the matter privately, referencing a previous confidential lawsuit that was settled to his satisfaction.
The defamation suit, filed on August 12, stemmed from a November 2021 video in which Atozy criticized Armstrong.
In the video, he calls him “a shady dirtbag” and accuses him of misleading his audience with poor financial advice.
Atozy also criticized Armstrong for promoting the failing Pamp token. Armstrong claimed he suffered losses exceeding $75,000 and sought damages for defamation.
Despite the public attention the case received, Armstrong admitted that his growing profile had made it difficult to keep legal matters private.
He acknowledged Atozy as the “winner” in the situation.
This incident isn’t the first time Armstrong has attempted legal action. He also planned a class-action lawsuit against Celsius after its bankruptcy but dropped it after realizing his role in promoting the platform.
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