The Commodity Futures Trading Commission (CFTC) has recently initiated an investigation into potential fraudulent activities involving 15 different cryptocurrency tokens, including the memecoin BEN. The inquiry has prompted the issuance of a subpoena to Hit Network, a crypto-centric media company formerly tied to Ben Armstrong, also known as “BitBoy” in the crypto world. This development underscores the agency’s focus on individuals suspected of fraud and illicit activities within the digital currency sphere. While Armstrong’s name is not explicitly outlined in the subpoena, the tokens under scrutiny were frequently endorsed in his content, leading to increased scrutiny on his involvement.
Armstrong’s association with Hit Network ended tumultuously in August 2023 following allegations of substance abuse and disputes over financial control. After his departure, legal battles ensued between Armstrong and Hit Network regarding his removal and the ownership of a Lamborghini. Armstrong has also made public statements alleging that his former colleagues seized financial control of the BitBoy Crypto brand in 2020, indicating a strained relationship within the business. This controversy has only escalated with the CFTC’s investigation into the tokens promoted by Armstrong, shedding light on potential fraudulent activities in the cryptocurrency market.
During his tenure at Hit Network, Armstrong gained notoriety for endorsing various tokens in his YouTube videos, often making promises of significant financial gains to viewers. However, many of these tokens experienced price declines, raising concerns among investors. Armstrong has since admitted to participating in paid promotions of crypto projects, some of which turned out to be scams. Despite these claims of unintentional endorsements, Armstrong paid a blockchain investigator to expose his undisclosed promotions, further adding to the complexity of the situation. The CFTC’s focus on tokens like BEN, a memecoin launched by an anonymous influencer, reflects the regulatory scrutiny on potential fraudulent activities in the crypto market.
Armstrong’s involvement with the BEN memecoin, both as an early supporter and later as its CEO, has come under scrutiny as part of the CFTC’s investigation. Despite initially backing the project, Armstrong distanced himself from BEN shortly after assuming the role of CEO, leading to speculation about the reasons behind his departure. Sources close to Hit Network suggest that Armstrong’s association with BEN played a significant role in his exit from the company, as other executives were reportedly uncomfortable with the token’s connection to their business. This revelation sheds light on the internal dynamics at Hit Network and the potential impact of Armstrong’s endorsement of certain tokens on his professional relationships.
As the CFTC delves deeper into the investigation of potential fraudulent cryptocurrency activities, the repercussions of this scrutiny have reverberated through the crypto community. Armstrong’s past endorsements and involvement in various tokens have come under increased scrutiny, leading to legal battles, public accusations, and a tarnished reputation within the industry. The regulatory focus on individuals suspected of fraud and illicit activities in the digital currency space highlights the importance of transparency and accountability in the promotion of cryptocurrencies. Moving forward, stakeholders in the crypto market must adhere to regulatory guidelines to maintain trust and credibility in the rapidly evolving industry.
