Influencer Ben.eth accused of wire fraud in $7M token presale

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Loevy & Loevy attorney Mike Kanovitz recently sent a settlement demand letter to a wallet address linked to influencer Ben.eth in the form of an NFT. The letter accused Ben.eth of involvement in wire fraud during a $7 million Psyop token presale.

Kanovitz emphasized that wire fraud was the minimum charge, which could lead to racketeering and a treble damages award of $21 million. He suggested refunding the ETH would display moral integrity while highlighting the potential legal consequences if refunds were not provided.

If Ben.eth persisted in harming thousands of people, Kanovitz warned that legal action would be taken to rectify the injustice. He also cautioned the influencer about the possibility of a “painful” legal procedure if the demands in the letter were not met.

The letter explicitly said that a lawsuit would be filed, naming Ben.eth’s real identity and alias, with legal documents personally served at their residence.

Kanovitz warned of subpoenaing Ben.eth’s communications, emphasizing that the evidence obtained would be undeniable proof against them. The attorney also aimed to uncover the real identities of Ben.eth’s co-conspirators involved in the scheme.

Kanovitz concluded by saying that Ben.eth’s actions constituted real fraud, causing harm to people, and that there would be consequences if the situation was not resolved.

“You are engaging in real fraud, and it is hurting real people. There will be consequences if you don’t make it right,” Kanovitz said

In response, Ben.eth retweeted the letter and criticized its unprofessional nature, suggesting it could potentially lead to consequences for Kanovitz with the bar association.

In a separate Tweet, the alleged fraud disclosed that 50 percent of the tokens had already been distributed, with the remaining portion to be sent promptly after the letter became public on Twitter.

Ben.eth’s tokens: $BEN, $PSYOP

Before the meme coin craze, Ben.eth was already a moderately recognized collector in the NFT community. However, his involvement became more noticeable when he started supporting the flourishing $PEPE community on Twitter.

After observing the price movements and remarkable ascent of this popular token, Ben.eth launched a meme-coin of his own, $BEN.

The launch involved a presale on May 4, which saw the distribution of 420.69 trillion tokens. While a few Twitter posts mentioning the presale have since been deleted, reports indicate that it managed to raise around 60 ETH from several hundred wallets. The presale wrapped up on May 5.

Following the presale, the public sale phase began, attracting thousands of token holders.

On May 12, Ben.eth introduced his latest coin, $PSYOP, through a presale. The coin’s name is derived from a well-known meme format referencing the United States’ history of psychological warfare.

The $PSYOP announcement triggered controversy around Ben.eth’s meme coin offerings. While opposition to $BEN stemmed primarily from its association with Bitboy, $PSYOP faced criticism from community members due to its weak launch mechanics or lack thereof.

In a now-deleted tweet, Ben.eth said that users had to send ETH directly to his ENS address to acquire presale $PSYOP tokens. This arrangement meant prospective investors had to rely solely on Ben.eth’s assurance to join the $PSYOP community, as no contract had been deployed during the presale phase.

Following the announcement, a significant amount of ETH started pouring into Ben.eth’s wallet, resulting in the influencer accumulating approximately 3,800 ETH, equivalent to nearly $7 million, within a few days.


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