- CFTC Initiates Investigation into Potential Fraudulent
- Activities include 15 different cryptocurrencies, including BEN
- A subpoena was issued to Hit Network, associated with Ben Armstrong
The Commodity Futures Trading Commission has launched an investigation into potentially fraudulent activities involving 15 cryptocurrencies, including BEN.
A subpoena has been issued to Hit Network, which was associated with Ben Armstrong, also known as “BitBoy.”
Details on Hit Network and Ben Armstrong
On July 16, the CFTC subpoenaed Hit Network to obtain information about trading activities and digital wallets connected to the 15 tokens.
Although Armstrong is not directly named in the subpoena, the tokens under investigation were prominently featured in his videos.
He had promoted these tokens, often suggesting a 100x price increase in value in his videos, released under the BitBoy Crypto brand around March 2021, when Hit Network was established with Armstrong as the primary show host.
Armstrong’s association with Hit Network ended in August 2023. He was accused by CEO T.J. Shedd of substance abuse, to which Armstrong admitted using diet pills and steroids but denied using hard drugs.
He also was arrested for attempting to reclaim a Lamborghini from a former business partner. He is currently involved in legal disputes with Hit Network over his removal and the vehicle.
What Did Armstrong Admit?
Armstrong admitted to participating in paid promotions for crypto projects, some of which turned out to be scams, although he claims these promotions were unintentional.
For instance, he paid $10,000 to blockchain investigator ZackXBT for exposing his undisclosed promotions.
The subpoena specifically highlights the token BEN, a meme coin 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, but he parted ways with the project on June 5.
Sources close to Hit Network indicate that Armstrong’s association with BEN contributed to his departure from the company, as other executives opposed the token’s affiliation with their business.
Conclusions
This is not the first time we’ve seen influencers’ actions turn out to be questionable, to say the least.
The current state of the crypto industry has already adopted measures to prevent such issues, and we increasingly hear about their successes, such as the recent case involving the founder of Terraform.
We will closely monitor the investigation and any new details that emerge.
