CFTC Issues Subpoena to Hit Network in Crypto Investigation

CFTC Chastised For 'Blatant Regulation Via Enforcement'

  • The CFTC issued a subpoena to Hit Network on July 16, focusing on 15 tokens, including BEN, linked to ex-crypto influencer Ben Armstrong.
  • Ben Armstrong, known as BitBoy, was part of Hit Network until August 2023 but was dismissed over allegations of substance abuse.
  • Armstrong admitted to engaging in paid promotions for cryptocurrencies, although he contends his promotion of BEN was unintentional.

The Commodity Futures Trading Commission (CFTC) has intensified its regulatory oversight on the cryptocurrency market by issuing a subpoena to Hit Network. This action, dated July 16, focuses on 15 specific tokens, including the meme coin BEN, closely associated with former crypto influencer Ben Armstrong. 

Armstrong, popularly known as BitBoy on YouTube, has featured these tokens in his videos, some of which he claimed could soar in value.

Backdrop of the Subpoena 

While the subpoena specifies Hit Network, it does not directly implicate Armstrong, who expressed relief over the CFTC’s decision. However, Armstrong’s association with these tokens, particularly before March 2021, raises significant concerns. 

Notably, Armstrong was part of Hit Network until August 2023 when he was dismissed over allegations related to substance misuse, which he has contested, claiming he only used diet pills and steroids.

Armstrong’s troubles extend beyond the regulatory scrutiny. Recently, he was arrested following disputes with a former business associate concerning ownership of a Lamborghini, further complicating his legal landscape. 

Armstrong is also engaged in ongoing litigation against Hit Network, emphasizing his turbulent exit from the company and the disputed luxury car.

Focus on BEN Coin 

The BEN coin, initially developed by an anonymous influencer known as ben.eth in May 2023, later saw Armstrong’s involvement. Although he left the project, Armstrong returned to take a leading role, stirring discussions and skepticism in the cryptocurrency community. 

Despite the controversies, Armstrong has admitted to doing paid promotions, albeit claiming that his involvement with BEN was inadvertent.

The CFTC’s latest move marks a significant step in addressing concerns over potential fraud in the meme coin sector, with Armstrong’s activities drawing particular scrutiny. The outcomes of this regulatory probe could have wide-reaching implications for both Armstrong and the broader cryptocurrency market. 

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The post CFTC Issues Subpoena to Hit Network in Crypto Investigation appeared first on Crypto News Land.


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