• Ben “Bitboy” Armstrong and Andrew Tate are associated with the PSYOP and BEN meme coins.
• Mike Kanovitx from Loevy & Loevy firm has threatened to sue ben.eth if he fails to refund PSYOP presale purchasers, seeking $21 million in damages.
• Despite mounting pressure, ben.eth has taken a lighthearted approach and diverted attention towards airdrops.
Memecoins Under Fire: Ben and Psyop Threatened With Class Action Lawsuit
Background of the Legal Threats
The recent PEPE meme coin craze has shifted the spotlight to other meme coins like BEN and PSYOP, which were further popularized due to their association with Ben “Bitboy” Armstrong and Andrew Tate. The creator of these coins, ben.eth, now faces the threat of class action lawsuits for allegedly misleading investors and possible charges related to wire fraud. Mike Kanovitx from Loevy & Loevy firm has seeked an astonishing $21 million dollars in damages through this lawsuit.
Legal Challenges Facing BEN & PSYOP
On May 20th, Mike Kanovitz tweeted that he would be filing a lawsuit against ben.eth if he failed to refund PSYOP presale purchasers. He also delivered an NFT letter outlining potential charges that ben.eth could face such as investor deception, fraud, racketeering and wire fraud. Furthermore, multiple individuals have expressed interest in joining the class action lawsuit which seeks damages amounting up to $21 million by returning ETH to affected investors who invested over $7 million in the pre-sale of these coins.
Lighthearted Approach From BEN & PSYOP Creator
Despite the mounting legal pressure, ben.eth has taken a rather lighthearted approach when responding to these threats by cracking jokes about it and diverting attention towards upcoming airdrops instead of addressing legal concerns directly or taking responsibility for any actions taken so far regarding their memecoins projects .
On Chain Detective Reveal
Recently On Chain Detective revealed that out of 3500 addresses that participated in buying BEN during its initial sale only 2 addresses held more than 80% worth tokens which suggests some kind of centralization or insider trading taking place within the project . This highlights how important it is for investors to do their research before participating in token sales or investing in new projects as they can be vulnerable targets for scams . Additionally , this serves as another reminder why proper regulations should be put into place before launching new tokens .
In conclusion , it is clear that there are many risks associated with investing in token sales without conducting sufficient research beforehand . Therefore , it is important for people considering investing into new projects or token sales ,to conduct thorough research on them before making any investments . Additionally , proper regulations need to be established regarding token launches so investors can protect themselves from scams or fraudulent activities .