CFTC Investigates Potential Crypto Fraud Involving Memecoin $BEN and 14 Other Tokens
The Commodity Futures Trading Commission (CFTC) is currently investigating possible fraudulent activities in the cryptocurrency market. The investigation mainly focused on 15 tokens, including the meme-coin $BEN, allegedly involving unknown individuals.
On July 16, the CFTC issued a subpoena to Hit Network, a crypto-focused media company previously represented by Ben Armstrong, known as “BitBoy.” The subpoena, reviewed by a Crypto media The Block, seeks information about trading activities and digital wallets related to the 15 tokens. It indicates an ongoing investigation into fraudulent activities and related unlawful conduct involving cryptocurrencies.
Armstrong, who prominently featured all the mentioned tokens in various videos, has been a central figure in the crypto community. One YouTube video even touted one of these tokens as having the best potential to rise 100X in price. However, the subpoena did not specifically reference Armstrong.
The videos promoting these tokens, except for BEN, were produced in or before March 2021 under the BitBoy Crypto branding. That same month, Hit Network was established as a Crypto media company, with Armstrong hosting its flagship show.
Ben Armstrong’s Controversial Exit
Armstrong remained with the Crypto media company until August 2023, when he was removed by current CEO T.J. Shedd over allegations of substance abuse. Armstrong later admitted to taking diet pills and steroids but denied using hard drugs.
Following his departure, Armstrong was arrested for attempting to reclaim a disputed luxurious car from a former business partner. He is now involved in litigation against Hit Network concerning his exit and the vehicle.
In a statement, Armstrong claimed that his former colleagues took control of the BitBoy Crypto brand’s finances in 2020 and made various accusations against them. He expressed his satisfaction with the subpoena, stating he “could not be more happy about” it.
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