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Ben Armstrong, popularly known as “BitBoy Crypto,” along with several associates, is facing a class-action lawsuit initiated by American holders of the $BEN coin. The lawsuit alleges fraudulent activities related to the promotion and investment in the cryptocurrency, which has led to substantial financial losses for many investors.
Details of the Lawsuit
A collective of investors has filed the legal action, explicitly naming Armstrong, Ashley (commonly referred to as Cassie), and other individuals as co-conspirators in the case. The plaintiffs assert that Armstrong and his team made misleading promises regarding the $BEN token, which lured many into investing under the false belief that they would see significant returns. The reality for many investors was instead considerable financial loss.
Nick Dimondi, a fellow commentator in the crypto space, has publicly stated support for the plaintiffs, emphasizing that he is not involved in the lawsuit but is assisting those seeking justice. He has also indicated that ample evidence has been collected to support the claims being made against Armstrong and his associates.
Connections to Broader Investigations
This lawsuit comes at a time when the Commodity Futures Trading Commission (CFTC) is conducting a broad investigation into fraudulent activities surrounding 15 cryptocurrencies, including $BEN. On August 3, the CFTC issued a subpoena to Hit Network, a media firm previously connected to Armstrong, to investigate potential trading malpractice and wallet connections that may implicate the involved tokens.
The investigation has highlighted Armstrong’s involvement in marketing $BEN while he collaborated with Hit Network. While Armstrong has acknowledged his acceptance of payments for promoting various tokens, he contends that his endorsements were not intentionally misleading. Despite his claims of unintentional promotion, the consequences have significantly impacted both his personal and professional life.
Background on the $BEN Token
The $BEN token was launched on May 5, 2023, by an influencer named ben.eth and gained popularity following Armstrong’s public endorsement. Armstrong later assumed the role of CEO but distanced himself from the project by June 5, 2023. His involvement reportedly caused tension within Hit Network, eventually leading to his removal as a host by August 2023.
Moreover, Armstrong’s exit from Hit Network was accompanied by allegations of substance abuse. While he has admitted to using steroids and diet pills, he denies using harder drugs. This period also saw Armstrong in a legal dispute over a Lamborghini with a former business partner, culminating in his arrest, adding to his ongoing legal troubles.
Ongoing Legal Battles and Public Perception
Armstrong’s legal issues extend beyond the $BEN coin lawsuit; he has faced multiple disputes related to his ousting from Hit Network. The spotlight on his promotion of $BEN, coupled with the CFTC investigation, has intensified scrutiny on his overall involvement in the cryptocurrency space.
Controversial Defamation Case
Recently, Armstrong found himself entangled in another legal issue when he filed, then promptly dropped, a defamation lawsuit against fellow influencer Erling ‘Atozy’ Mengshoel. During a livestream, he expressed his intention to abandon the case, regretting the unnecessary attention it had drawn. Armstrong explained his desire to resolve the matter privately, relating it to a previous confidential lawsuit that had concluded satisfactory for him.
The defamation suit stemmed from a November 2021 video where Atozy harshly criticized Armstrong, labeling him as “a shady dirtbag” and accusing him of steering his audience towards poor financial decisions, including the ill-fated Pamp token. Armstrong claimed to have incurred losses of over $75,000 and sought damages due to Atozy’s statements. Yet, in acknowledging the outcome, Armstrong conceded that Atozy had emerged as the “winner” in this dispute.
This incident is not isolated; Armstrong had previously considered launching a class-action lawsuit against Celsius following its bankruptcy, only to retract once he recognized his own promotional role in the platform’s failure. His repeated legal battles have raised questions about his reputation and the long-term implications for his career in the crypto industry.
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