- The CFTC has initiated an investigation involving crypto influencer Ben Armstrong, linked to a meme coin fraud.
- The regulatory body has issued a subpoena to Hit Network, a crypto media company once publicly associated with Armstrong.
- The subpoena targets 15 tokens, including BEN, a meme coin connected to BitBoy.
The CFTC has issued a subpoena as part of its effort to crack down on fraudulent activities involving 15 tokens, placing crypto influencer Ben Armstrong under scrutiny.
CFTC Actions Against Alleged Meme Coin Fraud
The Commodity Futures Trading Commission (CFTC) has taken legal action against alleged fraudulent activities in the cryptocurrency market. The agency has issued a subpoena to Hit Network, a media company that previously featured Ben Armstrong, also known as BitBoy, as a prominent figure. The subpoena targets multiple tokens, including the meme coin BEN.
Details of the Subpoena and Armstrong’s Involvement
On July 16, the CFTC issued a subpoena directed at Hit Network, seeking information on 15 tokens suspected of being involved in deceptive practices, with BEN being one of the focal points. Ben Armstrong, as a key influencer in the crypto space, had promoted these tokens on his YouTube channel, BitBoy Crypto. He made bold claims in his videos, suggesting that some of these tokens could yield returns as high as 100 times their original value. However, many of these tokens faced significant backlash from the market and investors.
Hit Network’s Role and Armstrong’s Departure
Though the subpoena was issued to Hit Network and not directly to BitBoy, Armstrong’s past association with the company is of notable interest. Hit Network gained attention as the media outlet featuring Armstrong’s flagship show. Armstrong’s partnership with Hit Network was ultimately short-lived, devolving into conflict. Videos displaying these tokens, except BEN, were aired under the BitBoy Crypto brand before March 2021.
Controversy Surrounding Armstrong
Armstrong’s affiliation with the crypto media company ended in August 2023, following allegations of substance abuse by current CEO T.J. Shedd. Armstrong has denied these claims, stating he only consumed diet pills and steroids. Additionally, Armstrong faced legal trouble involving a dispute over a Lamborghini with a former business associate, resulting in his arrest. Armstrong is now embroiled in a lawsuit against Hit Network over this separation and the vehicle issue.
The BEN Token and the Wider Implications
The BEN token, which has drawn particular attention in this investigation, was initially created by an influencer known as ben.eth on May 5, 2023. Armstrong later joined the token’s core team, eventually taking over as CEO, which sparked considerable debate within the crypto community. Although Armstrong claims BEN’s rise was accidental, he has also admitted to promoting other questionable tokens for compensation.
Conclusion
The CFTC’s issuance of the subpoena marks a significant move in its ongoing efforts to address fraud in the cryptocurrency market. As the investigation unfolds, the crypto community will keenly observe the outcomes and their potential impact on regulatory practices. Investors are advised to remain vigilant and conduct thorough due diligence when considering investments in lesser-known tokens promoted by social media influencers.
