The Commodity Futures Trading Commission (CFTC) is investigating fraud on 15 tokens, including the memecoin BEN. The agency served Hit Network, a crypto media company affiliated with Ben Armstrong, also known as “BitBoy,” with a subpoena to produce records regarding trading and wallets related to these tokens.
BitBoy’s Hit Network Faces CFTC Fraud Probe
The subpoena was issued on July 16 and is directed at Hit Network, which used to feature Ben Armstrong as its spokesperson. The subject of the investigation concerns the fraud connected with digital currencies and other unlawful activities. The CFTC asks for information about trading activities and digital wallets associated with the 15 tokens.
Ben Armstrong presented all the tokens in many videos and described how they could grow in value many times. However, the subpoena did not specifically name Armstrong. Hit Network was launched in March 2021, and Armstrong hosted the network’s main show.
Hit Network’s Ben Armstrong Linked to BEN Token Issues
Armstrong departed from Hit Network in August 2023 after being accused of substance abuse, which he partly confirmed. CEO T.J. Shedd accused Armstrong of engaging in activities that led to his dismissal, including his participation in the BEN token. Armstrong’s exit caused a legal battle over a Lamborghini and his exit from the company.
Armstrong used to promote tokens on YouTube, saying they would help people become rich. However, most of them turned out to be worthless. He revealed that he engaged in paid promotion of crypto scams but said it was by mistake. Armstrong once compensated ZackXBT, a blockchain investigator, $10,000 for exposing his hidden promotions.
BEN Token Controversy Affects Armstrong’s Dismissal
The BEN token, launched by influencer ben.eth in May 2023, became another source of conflict. Armstrong said he would join the token’s core team soon after its inception. He left the project on June 5 but returned to become the company’s CEO.
A source close to Hit Network revealed that Armstrong’s association with BEN affected his dismissal. Other company members were against integrating the token into their operations. Armstrong’s actions sparked questions regarding the token’s authenticity and endorsements.
BitBoy’s YouTube Ads Linked to Token Declines
Armstrong positively responded to the subpoena, stating that he felt vindicated after being sacked by Hit Network. He alleges that his former colleagues seized financial control of the BitBoy Crypto brand in 2020. Armstrong stated that many people within the industry would be punished for their alleged betrayal.
Armstrong often presented tokens in his YouTube videos that he said had great potential to generate profits. However, the value of many tokens decreased even with the CEO’s advertising. His recognition of paid promotions of crypto scams also played a part in tarnishing his reputation.
CFTC Probe Risks Legal Fallout for Hit Network
The CFTC’s investigation could have legal and financial consequences for Hit Network. Due to the investigation, the agency may take regulatory actions or penalties against the company. Hit Network’s connection with Armstrong and the tokens in question places it in the regulatory crosshairs.
Armstrong’s departure and the ongoing legal woes with Hit Network remain. His arrest for trying to get back a stolen Lamborghini exemplifies the current power struggles. The results of these disputes may affect Armstrong and Hit Network’s future activities.
