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Ben Armstrong, popularly known as “BitBoy Crypto,” is facing a class-action lawsuit from U.S.-based $BEN coin investors, accusing him and several associates of fraudulent practices.
Allegations Against Armstrong and Associates
The lawsuit alleges Armstrong, alongside individuals such as Ashley (Cassie), Ajwritescrypto, and JChainsX, misled investors with false promises of significant returns on $BEN coin investments. Many investors suffered substantial losses, prompting this legal action.
The plaintiffs assert they have preserved evidence to support their claims, strengthening their case against Armstrong and his former collaborators, including those tied to BenCoin ATMs.
Regulatory Scrutiny by the CFTC
The Commodity Futures Trading Commission (CFTC) has also initiated investigations into Armstrong’s activities. On August 3, the CFTC subpoenaed Hit Network, a media company formerly linked to Armstrong, to investigate its trading activities and wallet connections to $BEN and 14 other cryptocurrencies.
The $BEN token, launched on May 5, 2023, by influencer ben.eth, gained momentum after Armstrong’s endorsement. Armstrong briefly served as the project’s CEO before exiting on June 5. His involvement with $BEN reportedly caused internal conflicts at Hit Network, ultimately leading to his removal as host in August 2023.
Admission of Paid Promotions and Personal Challenges
Armstrong has acknowledged accepting payments to promote various tokens, including some scams, but maintains these endorsements were unintentional.
Beyond his crypto activities, Armstrong has faced personal and legal challenges, including allegations of substance abuse, which he partially admitted, and a legal dispute over a Lamborghini with a former business partner that led to his arrest.
A History of Controversies
This isn’t Armstrong’s first legal entanglement:
- Atozy Defamation Case: Armstrong recently filed and dropped a defamation lawsuit against influencer Erling ‘Atozy’ Mengshoel, apologizing publicly and admitting regret over the lawsuit’s publicity.
- Celsius Class-Action Withdrawal: Armstrong planned a class-action lawsuit against Celsius following its bankruptcy but later dropped the case, citing his own involvement in promoting the platform.
Growing Scrutiny of Crypto Promotions
Armstrong’s controversies come amid increasing regulatory focus on crypto influencers. The rise of lawsuits and investigations highlights the risks of misleading promotions in the blockchain space, particularly during a volatile market.
What’s Next for $BEN and Armstrong?
As the legal battles unfold, Armstrong’s role in the crypto industry faces intense scrutiny. The $BEN coin’s future remains uncertain, and the lawsuit’s outcome could set a precedent for how influencers are held accountable in the cryptocurrency market.
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