Class-Action Lawsuit Filed Against Ben Armstrong (BitBoy) Over $BEN Coin

Crypto Influencer Faces Legal Challenges Amid Fraud Allegations

Ben Armstrong, the well-known crypto influencer behind the BitBoy Crypto brand, is facing a class-action lawsuit from holders of the $BEN token. The lawsuit alleges that Armstrong and his associates misled investors about the potential returns on the token, resulting in significant financial losses for many of those who invested based on Armstrong’s promotion.

Allegations of Fraudulent Promotions

The plaintiffs in the class-action lawsuit claim that Armstrong, along with his former colleagues—such as Ashley (Cassie) and influencers like Ajwritescrypto and JChainsX—promoted $BEN with promises of substantial profits, which did not materialize. According to the lawsuit, investors who trusted Armstrong’s endorsements are now suffering financial setbacks, and the accusations of fraud center around the misleading promotion of the token’s potential.

The legal action also highlights that the claimants have collected and preserved evidence to support their allegations. This comes on the heels of an ongoing investigation by the Commodity Futures Trading Commission (CFTC) into the activities surrounding $BEN and other cryptocurrencies promoted by Armstrong.

CFTC Investigation and Armstrong’s Role

On August 3, 2024, the CFTC subpoenaed Hit Network, the media company formerly linked to Armstrong, in connection with its investigation into the trading activities and wallet addresses associated with $BEN and other tokens. This investigation is part of a broader effort by the CFTC to address potential fraudulent activity in the crypto market. Armstrong’s involvement in promoting these tokens has placed him under heightened scrutiny, as the CFTC’s investigation seeks to determine whether any illegal activities occurred in the promotion and trading of these cryptocurrencies.

Armstrong has acknowledged that he accepted payments for promoting certain tokens, some of which were later found to be scams. However, he maintains that these promotions were not intentional and that he was not aware of the fraudulent nature of some projects at the time.

The Rise and Fall of $BEN Token

Launched in May 2023 by the influencer known as ben.eth, the $BEN token initially gained traction after Armstrong publicly endorsed it. His involvement in the project grew, and he took on the role of CEO. However, Armstrong exited the $BEN project by June 2023, amid internal tensions and growing controversy. His departure was compounded by his removal as a host at Hit Network in August 2023, which coincided with personal struggles, including substance abuse allegations, and a public legal dispute over a Lamborghini with a former business partner.

Despite Armstrong’s exit from the project, the damage had already been done, with many investors reportedly suffering significant financial losses after the token’s value plummeted. The lawsuits and CFTC investigation have intensified scrutiny over Armstrong’s actions and his ongoing involvement in the crypto space.

Armstrong’s Legal and Public Troubles

Ben Armstrong has faced several legal and public challenges in recent years. Most recently, he filed and later dropped a defamation lawsuit against fellow influencer Erling ‘Atozy’ Mengshoel. Armstrong had sought damages after Atozy criticized him in a 2021 video, accusing him of misleading his audience with poor financial advice, including his promotion of the Pamp token. Armstrong has since apologized for the defamation suit and admitted that the matter should have been handled privately.

Additionally, Armstrong previously pursued a class-action lawsuit against Celsius Network following its bankruptcy, but he later withdrew the case after recognizing his role in promoting the platform.

Armstrong’s Legal Troubles Continue to Grow

As Armstrong remains embroiled in multiple legal disputes, the focus on his activities has only intensified. The $BEN lawsuit is just one in a series of challenges that have brought his controversial actions into the spotlight. The class-action lawsuit, combined with the CFTC investigation, suggests that Armstrong’s reputation within the crypto industry may continue to suffer, as more investors and regulators scrutinize his past and present crypto-related activities.

The outcome of these legal battles will likely have long-term implications for Armstrong’s career in the crypto space, as well as the broader influence of crypto influencers on the market. For now, Armstrong’s actions in promoting $BEN and other tokens remain under intense legal examination, and it remains to be seen whether he will face significant consequences.