The Commodity Futures Trading Commission (CFTC) has launched an investigation into potentially fraudulent cryptocurrency activities involving 15 different tokens, including the memecoin BEN.
The inquiry has led to a subpoena being issued to Hit Network, a crypto-centric media company previously associated with Ben Armstrong, widely known in the crypto community as “BitBoy.”
On July 16, the CFTC issued a subpoena to Hit Network, demanding information regarding trading activities and digital wallets connected to the 15 tokens.
CFTC’s Investigation Focuses on Individuals Suspected of Fraud
The subpoena indicates that the agency’s investigation focuses on individuals suspected of engaging in fraud and other illicit activities related to digital currencies.
Although Armstrong’s name is not directly mentioned in the subpoena, the tokens in question were frequently featured in his videos.
Armstrong had promoted these tokens extensively, claiming, for instance, that one of them had the potential to increase in value by 100 times, as highlighted in one of his YouTube video titles.
These videos, except for those concerning BEN, were produced 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.
Armstrong’s relationship with Hit Network ended tumultuously in August 2023.
He was ousted by the current CEO, T.J. Shedd, amid allegations of substance abuse.
Armstrong later admitted to using diet pills and steroids but denied the use of hard drugs.
Following his departure, Armstrong was arrested for attempting to reclaim a disputed Lamborghini from a former business partner.
He is currently engaged in legal battles with Hit Network concerning his removal and the vehicle.
Armstrong Alleges Colleagues Took Over BitBoy Brand in 2020
In a public statement, Armstrong alleged that his former colleagues had taken financial control of the BitBoy Crypto brand in 2020, echoing 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 tenure 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.
Notably, he paid blockchain investigator ZackXBT $10,000 for exposing his undisclosed promotions.
One of the tokens highlighted 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.
However, he parted ways with the project on June 5.
According to sources close to Hit Network, Armstrong’s involvement with BEN contributed to his departure from the company, as other executives were opposed to the token being associated with their business.
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