The Commodity Futures Trading Commission (CFTC) has initiated an inquiry into potentially fraudulent cryptocurrency activities that involve 15 distinct tokens, including the memecoin BEN.
A subpoena has been issued to Hit Network, a crypto-centric media company that was previously associated with Ben Armstrong, who is widely recognized as “BitBoy” in the crypto community, as a result of the inquiry.
The CFTC issued a subpoena to Hit Network on July 16, requesting information about the 15 tokens’ digital wallets and trading activities.
The agency’s investigation is concentrated on individuals who are suspected of engaging in fraudulent and other illicit activities related to digital currencies, as indicated by the subpoena.
The tokens in issue were frequently featured in Armstrong’s videos, despite the fact that his name is not expressly mentioned in the subpoena.
Armstrong had extensively promoted these tokens, asserting, for example, that one of them had the potential to increase in value by 100 times, as emphasized in the title of one of his YouTube videos.
Before or during March 2021, the BitBoy Crypto brand was responsible for the production of these videos, with the exception of those that pertain to BEN. This coincided with the establishment of Hit Network, which featured Armstrong as its primary host.
August 2023 marked the turbulent conclusion of Armstrong’s partnership with Hit Network. The current CEO, T.J. Shedd, removed him in response to allegations of substance abuse.
Armstrong subsequently acknowledged his use of steroids and diet medications, but he refuted the use of heavy narcotics.
Armstrong’s detention was the result of his efforts to retrieve a Lamborghini that was in dispute from a former business partner.
His removal and the vehicle are presently the subject of legal disputes with Hit Network. Armstrong, in a public statement, alleged that his erstwhile colleagues had seized financial control of the BitBoy Crypto brand in 2020, a charge that he has previously made online.
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