The Commodity Futures Trading Commission (CFTC) has recently conducted an investigation into a meme coin fraud case that involved BitBoy, a prominent crypto YouTuber.
Recent reports suggest that the CFTC has issued a subpoena to Hit Network, a crypto media company that was previously associated with Armstrong. This subpoena pertains to 15 cryptocurrencies, including the meme coin BEN, which is associated with BitBoy.
In an effort to combat fraudulent activities associated with these 15 tokens, which include the BEN meme coin, the CFTC implemented measures against Hit Network on July 16. Armstrong had advertised all of these tokens on his YouTube channel, asserting that some could generate returns of up to 100 times. Nevertheless, a significant number of these tokens underperformed in the market.
The subpoena only applies to Hit Network and not to BitBoy personally. Armstrong has expressed satisfaction with the CFTC’s approach, as the subpoena does not explicitly identify him. Amidst controversy, their partnership concluded, despite his previous affiliation with Hit Network.
Every token except BEN has a promotional film that was made before March 2021. Despite Armstrong’s initial popularity as the presenter of Hit Network, the network ultimately encountered obstacles.
Armstrong’s affiliation with Hit Network concluded in August 2023 as a result of allegations of substance misuse, which he refutes, asserting that he exclusively utilized steroids and diet tablets. He also encountered legal complications, such as an arrest on account of disagreements regarding a Lamborghini with a former business partner. These matters are presently the subject of legal proceedings between Armstrong and Hit Network.
In light of the CFTC’s probe, Armstrong has spoken out about the matter, requesting that people listen to his side of the story. Armstrong maintains that his association with BEN was inadvertent, despite accusations that he has been involved in the promotion of crypto schemes.
In May 2023, an anonymous influencer named ben.eth created the BEN token. Armstrong briefly led the initiative before stepping down and subsequently returning as CEO.
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