The CFTC is investigating potential fraud involving $BEN and 14 other cryptocurrencies amid legal action against BitBoy Crypto.
Ben Armstrong, known as BitBoy Crypto, is facing a class-action lawsuit from investors who bought the $BEN token, alleging his promotions misled them. The lawsuit accuses Armstrong and his associates of promising big returns, only for many investors to suffer significant losses.
The legal action comes amid an ongoing investigation by the Commodity Futures Trading Commission (CFTC) into potential fraud involving $BEN and 14 other cryptocurrencies.
On August 3, the CFTC subpoenaed Hit Network, a company once linked to Armstrong, to investigate trading activities and wallet connections related to these tokens.
Armstrong had promoted $BEN, which was launched in May 2023 by an influencer named ben.eth. He later became CEO of the project but stepped down in June 2023.
Armstrong has admitted to accepting payments for token promotions, some of which he claims were scams, though he insists the promotions were unintentional. His involvement with $BEN caused friction at Hit Network, eventually leading to his removal as host in August 2023.
Armstrong has also been dealing with personal issues, including allegations of substance abuse, which he partially acknowledged, and legal disputes over a Lamborghini with a former partner.
Armstrong is also involved in other legal battles, including a defamation suit he filed—and later dropped—against fellow influencer Atozy. With his reputation under fire, Armstrong faces serious scrutiny over his crypto-related activities.