Legal entanglements and regulatory scrutiny continue to make waves. The latest development involves a notable figure in the crypto sphere, Ben “BitBoy” Armstrong, and his former company Hit Network. This case highlights the ongoing challenges faced by influencers and media companies operating in the volatile crypto space, as well as the increasing attention from regulatory bodies like the Commodity Futures Trading Commission (CFTC).
CFTC Subpoena Targets Hit Network
The CFTC has taken a significant step in its investigation into potential fraudulent activities within the cryptocurrency ecosystem. On July 16, the regulatory body issued a subpoena to Hit Network, the crypto-focused media company that previously hosted Ben Armstrong as its public face.
Scope of the Investigation
The subpoena seeks information related to trading activities and digital wallets associated with 15 specific tokens. This inquiry is part of a broader investigation into individuals potentially engaged in fraudulent practices involving digital currencies and related unlawful conduct.
Tokens Under Scrutiny
One of the tokens mentioned in the subpoena is the memecoin BEN, which has a direct connection to Armstrong. The other 14 tokens were featured in Armstrong’s YouTube videos, predominantly before Hit Network’s formation in March 2021.
Ben Armstrong’s Controversial Past
Ben “BitBoy” Armstrong’s history in the crypto space has been marked by both popularity and controversy. His departure from Hit Network in August 2023 was surrounded by drama and legal disputes.
Departure from Hit Network
- Removed by CEO T.J. Shedd over allegations of substance abuse
- Armstrong admitted to using diet pills and steroids but denied hard drug use
- Arrested after attempting to reclaim a disputed Lamborghini from a former business partner
Ongoing Litigation
Armstrong is currently involved in legal proceedings against Hit Network regarding his exit and the disputed vehicle.
Narrator: They weren’t the crypto picks of your lifetime https://t.co/fasiY5h6uY https://t.co/K6Ham9Juua pic.twitter.com/g4ZrzBRjmS
— ZachXBT (@zachxbt) January 4, 2022
The BEN Token Saga
The BEN memecoin, created on May 5, 2023, by a pseudonymous influencer known as ben.eth, has become a focal point in this investigation.
- Armstrong joined the token’s core team shortly after its creation
- He parted ways with the project on June 5, 2023
- Earlier this year, Armstrong took over as CEO of the BEN token project
“All I have asked for over a year, is for people to listen to me,” Armstrong told The Block. “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.”
Implications for the Crypto Industry
This investigation underscores the increasing regulatory scrutiny faced by cryptocurrency influencers and media companies. It raises important questions about:
- The responsibilities of crypto influencers
- The potential for market manipulation through social media
- The role of media companies in the cryptocurrency ecosystem
As the CFTC delves deeper into this case, it may set precedents for how regulatory bodies approach similar situations in the future, potentially reshaping the landscape of crypto-related media and influencer marketing.
