The post Memecoins Under Fire: Ben and Psyop Threatened With Class Action Lawsuit appeared first on Coinpedia Fintech News
Following the PEPE meme coin craze for the past couple of weeks, the spotlight has shifted to other meme coins like BEN and PSYOP. These coins attracted further attention because of the fact that Ben “Bitboy” Armstrong and Andrew Tate were associated with them.
The creator of BEN and PSYOP, ben.eth, now faces the threat of class action lawsuits for allegedly misleading investors and possible charges related to wire fraud. Mike Kanovitx, a partner at Loevy & Loevy firm has seeked an astonishing $21 million dollars in damages.
Here’s all the details you need.
Legal Threats and Controversy Surrounding PSYOP and BEN
In a tweet on May 20, Mike Kanovitz, a partner at the legal firm Loevy & Loevy and the CEO of Jurat Blockchains, threatened to sue ben.eth if he failed to refund PSYOP presale purchasers. A letter was delivered as an NFT to the address ben.eth. This letter outlined the potential charges that ben.eth could face. It could include investor deception, fraud, racketeering and wire fraud.
The PSYOP has raised a staggering $7 million in presale and Kanovitz seeks damages amounting to $21 million through the class action lawsuit, proposing a resolution by returning ETH to affected investors.
Also Read: Miles Deutscher Shares Ultimate Guide To Investing In Meme Coins – Coinpedia Fintech News
BEN and PSYOP, two memecoins that have gained considerable attention, owe their surge in popularity to ben.eth. They linked the PSYOP meme coin with media personality Andrew Tate, suggesting his possible involvement as a buyer. Similarly, YouTuber Ben Armstrong became associated with the BEN meme coin when he bought and later sold all his token holdings.
Multiple individuals have emerged expressing their intentions to file lawsuits against ben.eth and showcasing keen interest in joining the ongoing class action lawsuit.However, amidst the mounting pressure, ben.eth has taken a rather lighthearted approach, cracking jokes about the lawsuit and diverting attention towards airdrops.
On Chain Detective Reveals Evidence
ZachXBT, an on-chain detective, has revealed evidence of ben.eth misleading investors and raising a substantial 10,000 ETH through the PSYOP presale. ZachXBT has been exposing many meme coins as part of his attempts to expose unethical behavior during the meme coin season, bringing attention to the deceit taking place within the trading community. To support his claims, he has shared screenshots of tweets, accompanied by a caption that implies a sense of pretended surprise.
Defenders of $PSYOP Mock Legal Threat
The letter released by Konovitz has faced backlash from the PSYOP defenders. Firstly it was ridiculed for its informal tone, typos, and lack of approval from Jon Loevy, Kanovitz’s legal partner. Ben_eth dismissed the legal threat, deeming it unprofessional and potentially risking trouble with the bar association.
However, it is interesting to note that despite raising $7 million, $PSYOP lacks integrity and substance. This was evident when a media studio bearing the same name denounced the project on May 19. Moreover, a scammer attempted to imitate the token launch through a phishing scheme, further tarnishing its credibility.