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The Commodity Futures Trading Commission (CFTC) has initiated an investigation into potentially deceptive cryptocurrency practices involving 15 distinct tokens, including the memecoin BEN.
This investigation has resulted in a subpoena being issued to Hit Network, a media firm focused on cryptocurrency that was previously linked to Ben Armstrong, who is widely recognized in the crypto space as “BitBoy.”
On July 16, the CFTC served a subpoena to Hit Network, requesting information related to trading activities and digital wallets associated with the 15 tokens.
CFTC’s Investigation Targets Individuals Suspected of Fraud
The subpoena suggests that the agency’s inquiry is centered on individuals believed to be involved in fraudulent and other unlawful activities concerning digital currencies.
While Armstrong’s name is not explicitly mentioned in the subpoena, the tokens under scrutiny were often highlighted in his videos.
Armstrong had extensively promoted these tokens, asserting, for example, that one of them could potentially appreciate in value by 100 times, as noted in one of his YouTube video titles.
These videos, apart from those related to BEN, were created under the BitBoy Crypto brand before or during March 2021, coinciding with the establishment of Hit Network, where Armstrong served as the host of its primary show.
Armstrong’s association with Hit Network concluded contentiously in August 2023.
He was removed by the current CEO, T.J. Shedd, amid allegations of substance misuse.
Armstrong later acknowledged using diet pills and steroids but denied the use of harder substances.
After his exit, Armstrong was arrested for attempting to retrieve a disputed Lamborghini from a former business associate.
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He is presently involved in legal disputes with Hit Network regarding his dismissal and the vehicle.
Armstrong Claims Colleagues Assumed Control of BitBoy Brand in 2020
In a public statement, Armstrong claimed that his former colleagues had taken financial control of the BitBoy Crypto brand in 2020, reiterating accusations he has made online.
“All I have asked for over a year, is for people to listen to me. Everyone in this industry almost turned on me. And now, many of those people will begin to feel the weight of their betrayals as many of them will end up connected.”
During his time at Hit Network, Armstrong was recognized for hosting YouTube videos in which he endorsed various tokens, frequently promising substantial financial returns.
However, many of these tokens saw declines in their prices.
Armstrong has acknowledged participating in paid promotions of crypto projects, some of which were revealed to be scams, although he asserts that these promotions were unintentional.
Notably, he compensated blockchain investigator ZackXBT $10,000 for revealing his undisclosed promotions.
One of the tokens mentioned in the CFTC’s subpoena is BEN, a memecoin introduced by an anonymous influencer known as ben.eth on May 5, 2023.
Armstrong declared his involvement with BEN shortly after its launch, later assuming the role of its CEO.
However, he distanced himself from the project on June 5.
According to sources close to Hit Network, Armstrong’s association with BEN played a role in his exit from the company, as other executives were against the token being linked to their business.
The post Ben ‘BitBoy’ Armstrong’s Former Company Subpoenaed in CFTC Fraud Probe appeared first on Cryptonews.
