CFTC Sues Altcoin of One of the Cryptocurrency World’s Most Prominent Influencers

The U.S. Commodity Futures Trading Commission (CFTC) has issued a subpoena to Hit Network, a cryptocurrency-focused media company associated with Ben Armstrong, formerly known as “BitBoy.”

The subpoena is dated July 16 and is part of a broader investigation into potential fraudulent activity related to digital currencies, specifically 15 specific tokens, including memecoin BEN.

The CFTC's investigation focuses on trading activity related to these tokens and digital wallets, suggesting that unknown individuals may have engaged in fraudulent conduct. Although the subpoena under review does not directly reference Armstrong, it does highlight his role in promoting these tokens through various videos.

Armstrong, who was one of the leading figures of the Hit Network until his departure in August 2023, included all the mentioned tokens in his videos. For example, a YouTube video title suggested that the price of one of the tokens had the potential to increase 100x. These videos were created under the BitBoy Crypto brand, and most were produced in or before March 2021, the month the Hit Network was founded.

In response to the subpoena, Armstrong expressed satisfaction, claiming that his former colleagues gained financial control of the BitBoy Crypto brand in 2020 and accusing them of various irregularities. “For over a year, all I wanted was for people to listen to me,” Armstrong said. “Pretty much everyone in this industry turned their back on me.

“And now, many of these people will begin to feel the weight of their betrayals, because so many of them will be connected to each other.”

One token of particular interest in the subpoena is BEN, a memecoin created on May 5, 2023 by a fake influencer known as ben.eth. Armstrong joined the token's core team shortly after its creation and took over as CEO earlier this year, although he parted ways with the project on June 5.

*This is not investment advice.