CFTC Investigation Into Fraudulent Crypto Activity

The CFTC is investigating potentially fraudulent cryptocurrency activity involving 15 tokens, including the memecoin BEN. On July 16, they issued a subpoena to Hit Network, a crypto media company that had Ben Armstrong, known as “BitBoy,” as its public face.

The subpoena requests information about trading activity and digital wallets related to the tokens and is part of an investigation into fraud and unlawful conduct involving digital currencies. Despite Armstrong’s notable promotion of these tokens through various YouTube videos, he is not specifically referenced in the subpoena.

Background on Armstrong

Armstrong was previously a part of Hit Network until August 2023 when he was removed by CEO T.J. Shedd over substance abuse allegations. Following his departure, he faced legal issues related to a disputed Lamborghini with a former business partner and is currently in litigation with Hit Network.

Armstrong claims that his former colleagues took control of the BitBoy Crypto brand in 2020 and has made various accusations against them. He expressed satisfaction with the subpoena, stating that he has been seeking acknowledgment of his claims for over a year.

Earlier in his tenure, Armstrong hosted videos touting various tokens as investments, although many depreciated in value. He has admitted to making paid promotions of crypto scams, asserting these were inadvertent.

BEN Memecoin Details

Among the tokens mentioned in the subpoena is BEN, a memecoin created on May 5, 2023, by an influencer named ben.eth. Armstrong joined its core team shortly after, but left on June 5. He later took on the role of CEO of BEN but faced internal pushback from Hit Network.

Hit Network declined to comment, and the CFTC has not provided a response.