The Commodity Futures Trading Commission (CFTC) is conducting an investigation into potential fraudulent activities involving 15 different tokens in the cryptocurrency market, including the memecoin BEN. The CFTC issued a subpoena to Hit Network, a crypto-centric media company associated with Ben Armstrong, also known as BitBoy in the crypto community, demanding information related to trading activities and digital wallets connected to the 15 tokens. The focus of the investigation is on individuals suspected of fraud and other illicit activities in the digital currency space. Despite not being directly mentioned in the subpoena, the tokens in question were frequently promoted by Armstrong in his videos, with claims of significant potential value increase.
Armstrong had extensivly promoted these tokens, claiming that one of them had the potential to increase in value by 100 times, in his YouTube videos, except for those relating to BEN. He produced these videos under the BitBoy Crypto brand before or during March 2021, coinciding with the formation of Hit Network with Armstrong as the host of its main show. However, his relationship with Hit Network ended tumultuously in August 2023, when he was ousted by the current CEO amid allegations of substance abuse. Armstrong later admitted to using diet pills and steroids but denied the use of hard drugs. After his departure, Armstrong was arrested for trying to reclaim a disputed Lamborghini from a former business partner, and is currently engaged in legal disputes with Hit Network regarding his removal and the vehicle.
Armstrong alleged in a public statement that his former colleagues had taken financial control of the BitBoy Crypto brand in 2020, echoing accusations he made online. During his time at Hit Network, Armstrong was known for hosting YouTube videos in which he recommended various tokens, often promising significant financial returns. However, many of these tokens experienced price declines. Armstrong has admitted to participating in paid promotions of crypto projects, some of which turned out to be scams, though he claims these promotions were unintentional. He paid a blockchain investigator $10,000 for exposing his undisclosed promotions. One of the tokens mentioned in the CFTC’s subpoena is BEN, a memecoin launched by an anonymous influencer known as ben.eth on May 5, 2023. Armstrong announced his involvement with BEN shortly after its creation, later becoming its CEO before ultimately parting ways with the project on June 5.
Armstrong’s involvement with BEN reportedly contributed to his departure from Hit Network, as other executives were opposed to the token being associated with their business. The investigation by the CFTC into potentially fraudulent activities in the cryptocurrency market involving various tokens, including BEN, highlights the growing scrutiny and regulatory oversight in the industry. The outcome of the investigation and its implications for both Armstrong and the tokens in question remain to be seen. Armstrong’s history of promoting crypto projects and facing legal challenges related to his involvement with them underscores the risks and controversies that can arise in the volatile and rapidly evolving cryptocurrency market. The CFTC’s ongoing efforts to uncover fraud and illicit activities in the digital currency space serve to protect investors and maintain the integrity of the market, as authorities continue to monitor and regulate the burgeoning cryptocurrency industry.
