The CFTC has subpoenaed Hit Network, Ben Armstrong’s former company, in a fraud investigation involving 15 tokens, including BEN.
Points
- CFTC subpoenas Hit Network in a fraud investigation.
- Investigation involves 15 tokens, including BEN.
- Armstrong, known as “BitBoy,” previously promoted these tokens.
- Armstrong’s activity with the memecoin BEN is under scrutiny.
The Commodity Futures Trading Commission （CFTC） is investigating potentially fraudulent crypto activities carried out by unknown individuals, involving 15 tokens, including the memecoin BEN. On July 16, the CFTC issued a subpoena to Hit Network, the crypto-focused media company previously associated with Ben Armstrong, known as “BitBoy.”
The subpoena requests information about trading activity and digital wallets connected with the 15 tokens. Armstrong had featured all these tokens in various videos, often promoting them as having significant potential for price increases.
Armstrong’s involvement with Hit Network ended in August 2023 amid allegations of substance abuse and legal issues. His activity with the memecoin BEN, created by influencer ben.eth, has been particularly controversial. Armstrong joined the BEN project shortly after its launch but parted ways with it in June.
Hit Network’s current CEO, T.J. Shedd, removed Armstrong from the company due to concerns over his involvement with BEN and other tokens. The CFTC’s investigation seeks to uncover any fraudulent activities related to these promotions.
解説
- The CFTC’s subpoena of Hit Network reflects heightened regulatory scrutiny of promotional activities within the crypto industry.
- Armstrong’s promotion of various tokens, including BEN, raises questions about transparency and accountability in crypto endorsements.
- The investigation highlights the risks associated with influencer-driven token promotions and the potential for fraudulent activities.
- Hit Network’s efforts to distance itself from Armstrong underscore the importance of ethical practices and due diligence in crypto-related media companies.
- The outcome of this investigation could set precedents for how regulatory bodies address similar cases in the future, impacting influencer marketing within the crypto space.