The United States Commodity Futures Trading Commission (CFTC) is investigating cryptocurrency fraud activities conducted by unidentified individuals, potentially involving 15 tokens, including the memecoin BEN.
The agency issued a subpoena on July 16 to Hit Network, a crypto-focused media company previously fronted by Ben Armstrong, also known as “BitBoy.” The subpoena requests information about trading activities and digital wallets connected to the 15 tokens. This is part of an investigation into individuals engaging in fraudulent digital currency activities and related unlawful acts.
Armstrong introduced all the mentioned tokens in various videos. For instance, according to the title of one YouTube video, one of them has the potential to increase in value 100-fold. The subpoena does not mention Armstrong.
The videos referencing the tokens, except for BEN, were created on or before March 2021 under the BitBoy Crypto brand. That month, Hit Network was established as a media company, with Armstrong as their lead host.
Dramatic Departure
Armstrong was with the company until August 2023, when he was accused by current CEO T.J. Shedd of substance abuse (Armstrong later admitted to taking weight loss pills and steroids but denied using hard drugs). After his departure, Armstrong was arrested for visiting the house of a former business partner in hopes of reclaiming a disputed Lamborghini. He is currently suing Hit Network over his departure and the car.
In a statement, Armstrong claimed that his former colleagues took control of BitBoy Crypto’s finances in 2020 and made various allegations against them, similar to those he has made online. He stated that he “could not be happier” about the subpoena.
“All I have asked for over the past year is for people to listen to me. Everyone in this industry has nearly turned their back on me. And now, many of them will start feeling the weight of betrayal because many of them ultimately conspired together.”
While at the company, Armstrong regularly made YouTube videos suggesting tokens that he said would make his audience wealthy—though many such tokens instead decreased in value. This YouTuber admitted to engaging in paid advertisements for crypto scams, although he claimed it was unintentional. He once paid blockchain detective ZackXBT $10,000 to prove he conducted undisclosed paid promotions in the past.
One of the tokens listed in the subpoena is a memecoin called BEN. It was created by an influencer known as ben.eth on May 5, 2023. A few days later, Armstrong announced he had joined the core team of this token. On June 5, he parted ways with the project, but earlier this year, he took on the role of CEO himself.
According to a source close to Hit Network, Armstrong’s activities related to this memecoin were among the reasons for his departure from the company. Others at the company did not want the token to become part of their business activities.
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