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

Legal Action Against BitBoy Crypto and Associates

Ben Armstrong, widely recognized in the cryptocurrency community as BitBoy Crypto, along with several of his business associates, is currently facing a significant class-action lawsuit initiated by American investors who purchased the $BEN coin. The legal action centers on allegations of fraudulent activities and misleading promotional practices that allegedly resulted in substantial financial losses for token holders.

The lawsuit was filed by a coalition of investors who claim to have been deceived by promises of substantial returns on their investments in the $BEN token. The plaintiffs have named Armstrong, his associate Ashley, and several other individuals as co-conspirators in what they describe as a coordinated scheme to promote the token while concealing its true risks and potential for failure.

According to court documents, the claimants have preserved extensive evidence to support their allegations, including promotional materials, social media posts, and communication records. The lawsuit also extends to Armstrong's former collaborators, including individuals associated with BenCoin ATMs and prominent crypto influencers such as Ajwritescrypto and JChainsX, who allegedly participated in promoting the token to their respective audiences.

Regulatory Investigation and CFTC Involvement

The class-action lawsuit emerges against the backdrop of an ongoing investigation by the Commodity Futures Trading Commission (CFTC) into fraudulent activities involving 15 different cryptocurrencies, including the $BEN token. This regulatory scrutiny has added another layer of complexity to Armstrong's legal troubles and raised questions about the broader implications for cryptocurrency influencer marketing.

In a significant development during the investigation, the CFTC issued a subpoena to Hit Network, a media company that was formerly associated with Armstrong. The subpoena sought detailed information about trading activities, wallet connections, and promotional practices related to the tokens under investigation. The regulatory body's focus on Hit Network has brought Armstrong's role in promoting $BEN and other tokens into sharp relief, particularly regarding his influence over investment decisions made by his substantial following.

Armstrong has publicly acknowledged that he accepted payments for promoting various tokens, some of which turned out to be fraudulent schemes. However, he maintains that his endorsements of these problematic projects were unintentional and that he was not aware of their fraudulent nature at the time of promotion. This admission has nonetheless raised serious questions about due diligence practices among crypto influencers and the responsibility they bear toward their audiences.

The Rise and Fall of $BEN Token

The $BEN token was launched in May 2023 by an anonymous influencer known as ben.eth. The token gained significant traction in the cryptocurrency market after Armstrong publicly endorsed it, leveraging his substantial social media following to promote the project. His endorsement led to a surge in interest and investment, with many of his followers purchasing the token based on his recommendations.

Following his initial promotion, Armstrong took on a more formal role as CEO of the $BEN project, further cementing his association with the token. However, his tenure in this position was relatively brief, as he exited the project in early June 2023, approximately one month after the token's launch. The circumstances surrounding his departure have been the subject of speculation and controversy within the crypto community.

Armstrong's involvement with the $BEN token reportedly created significant friction within Hit Network, where he was employed as a host. The controversy surrounding the token and the mounting criticism of his promotional activities contributed to growing tensions with the company's management. These conflicts ultimately played a role in his removal as host from Hit Network in August 2023, marking a significant turning point in his career as a crypto influencer.

Personal Controversies and Legal Disputes

Beyond the $BEN token controversy, Armstrong's departure from Hit Network was accompanied by allegations of substance abuse, which added another dimension to the public scrutiny he faced. Armstrong has partially acknowledged these allegations, admitting to the use of performance-enhancing substances such as steroids and diet pills. However, he has consistently denied using harder substances, despite ongoing speculation and accusations from various sources.

Armstrong's legal troubles extended beyond the class-action lawsuit and CFTC investigation. He became embroiled in a dispute with a former business partner over ownership of a Lamborghini, which escalated to the point where law enforcement became involved. This incident resulted in Armstrong's arrest, further damaging his public image and credibility within the cryptocurrency community.

The influencer remains engaged in multiple ongoing legal battles, including disputes with Hit Network over the circumstances of his termination and the terms of his departure. These various legal challenges, combined with the CFTC investigation and the class-action lawsuit related to $BEN, have significantly amplified scrutiny of his crypto-related activities and raised broader questions about accountability in the cryptocurrency influencer space.

Defamation Case Against Fellow Influencer

In another legal development, Armstrong initiated and subsequently withdrew a defamation lawsuit against fellow content creator Erling 'Atozy' Mengshoel. The case stemmed from a video published in November 2021, in which Atozy criticized Armstrong's promotional practices and accused him of providing misleading financial advice to his audience.

In the controversial video, Atozy referred to Armstrong as "a shady dirtbag" and specifically criticized his promotion of the Pamp token, which had failed shortly after Armstrong's endorsement. Armstrong filed the defamation suit in August of the following year, claiming that Atozy's statements had caused him to suffer losses exceeding $75,000 in damages to his reputation and business opportunities.

However, during a livestream broadcast, Armstrong announced that he would drop the case entirely, offering an apology to Atozy for the legal action. He explained that he had initially hoped to resolve the matter privately, referencing a previous confidential lawsuit that had been settled to his satisfaction. Armstrong admitted that his growing public profile had made it increasingly difficult to keep legal matters out of the public eye and acknowledged Atozy as the "winner" in the situation.

This incident was not Armstrong's first attempt at legal recourse for perceived wrongs in the cryptocurrency space. He had previously planned to initiate a class-action lawsuit against the cryptocurrency lending platform Celsius following its bankruptcy. However, he ultimately dropped those plans after recognizing his own role in promoting the platform to his followers, which complicated his position as a potential plaintiff in such an action.

FAQ

What is the class-action lawsuit filed against Ben Armstrong over the $BEN coin, and what are the specific reasons for the lawsuit?

Ben Armstrong faces a class-action lawsuit alleging fraud and mismanagement related to the BEN token project. Investors claim he misled them about token distribution, manipulated liquidity pools, and failed to return investments. The lawsuit seeks compensation for alleged wire fraud and deceptive practices in the token offering.

What impact will this class-action lawsuit have on the price and market of $BEN coin?

The lawsuit has significantly impacted $BEN's market outlook. Token valuation has declined from a peak of $120 million to $10.15 million, with daily trading volume dropping sharply to $1.954 million, reflecting weakened market confidence and reduced activity.

As a $BEN coin investor, how should I respond to this lawsuit? Can my rights be protected?

Consult a professional lawyer immediately for legal guidance. Protection depends on lawsuit outcomes and legal support. Monitor official announcements closely and stay informed about case developments and potential settlement options.

Who is Ben Armstrong? What role did he play in the $BEN coin project?

Ben Armstrong, known as BitBoy Crypto, is a crypto influencer who served as a promoter for the $BEN token project. He faced legal disputes and was eventually disassociated from his media company HIT Network, with his channel rebranded to Discover Crypto.

How long is this lawsuit expected to take to resolve? What are the possible legal consequences?

Class-action lawsuits typically take 1-3 years to resolve depending on complexity and settlement negotiations. Potential consequences include compensatory damages, injunctions, and regulatory penalties against defendants.

How do investors join this class-action lawsuit? What conditions must be met?

Investors are automatically included in the class action unless they explicitly opt out. You must have held $BEN tokens during the relevant period and suffered losses. No separate application is required to participate in the lawsuit.