Former 'Simply Unlucky' Probed for Fraud: CFTC Targets Crypto Community.

In the world of cryptocurrency, the Commodity Futures Trading Commission (CFTC) has initiated an investigation into potential fraudulent activities involving 15 different tokens, including the memecoin BEN. This investigation has prompted a subpoena to be issued to Hit Network, a media company with ties to Ben Armstrong, popularly known as “BitBoy” in the crypto community. The subpoena, issued on July 16, requests information on trading activities and digital wallets linked to the 15 tokens under scrutiny. ### CFTC’s Investigation Focuses on Individuals Suspected of Fraud The focus of the CFTC's investigation is on individuals believed to be involved in fraudulent and illicit activities within the digital currency space. While the subpoena does not directly name Armstrong, the tokens in question were prominently featured in his videos. Armstrong had been actively promoting these tokens, suggesting that one of them could potentially surge in value by 100 times, as showcased in one of his YouTube videos. These tokens, excluding BEN, were endorsed under the BitBoy crypto brand before or during March 2021, coinciding with the establishment of Hit Network with Armstrong as the main show host. However, Armstrong's relationship with Hit Network came to an acrimonious end in August 2023 when he was ousted by the current CEO, T.J. Shedd, amid allegations of substance abuse. Despite acknowledging the use of diet pills and steroids, Armstrong denied the consumption of hard drugs. Subsequently, he faced legal troubles following his attempt to reclaim a disputed Lamborghini from a former business partner, leading to ongoing legal battles with Hit Network over his dismissal and the vehicle. ### Armstrong Alleges Colleagues Took Over BitBoy Brand in 2020 In a public statement, Armstrong accused his former colleagues of assuming financial control of the BitBoy crypto brand in 2020, echoing similar allegations made online. He expressed frustration at the lack of support from the industry, emphasizing the repercussions his detractors may face for their actions. During his tenure at Hit Network, Armstrong was known for promoting various tokens in his YouTube videos, often promising substantial financial gains. However, many of these tokens experienced price declines. Armstrong has conceded to participating in paid promotions of crypto projects, some of which turned out to be scams, although he asserts these endorsements were unintentional. Notably, he paid blockchain investigator ZackXBT $10,000 for revealing his undisclosed promotions. One of the tokens highlighted in the CFTC's subpoena is BEN, a memecoin created by an anonymous influencer under the pseudonym ben.eth on May 5, 2023. Armstrong initially announced his involvement with BEN and later assumed the role of CEO before parting ways with the project on June 5. Armstrong's association with BEN reportedly contributed to his exit from Hit Network, as other executives objected to the token's affiliation with their business. The tumultuous relationship between Armstrong and Hit Network underscores the complexity and controversies surrounding the cryptocurrency industry, shedding light on the challenges and pitfalls faced by individuals and companies operating in this space.