CFTC Investigates Hit Network and Ben “BitBoy” Armstrong in Cryptocurrency Fraud Case

• CFTC probes Hit Network for potential fraud involving 15 cryptocurrency tokens.
• Ben Armstrong’s role and activities were scrutinized amid an ongoing CFTC investigation.
• Subpoena focuses on detailed trading data and digital wallet information.

The Commodity Futures Trading Commission (CFTC) has launched an investigation into possible cryptocurrency fraud involving 15 digital tokens, issuing a subpoena to Hit Network, the media company formerly associated with cryptocurrency influencer Ben “BitBoy” Armstrong. The inquiry highlights concerns over potential illicit activities connected to these tokens, including the memecoin BEN, which Armstrong once promoted.

On July 16, the CFTC delivered a subpoena to Hit Network, seeking detailed information about trading activities and digital wallets associated with the 15 tokens. The focus of the investigation appears to be on transactions and endorsements that occurred both before and during the tokens’ association with Hit Network and Armstrong. The agency is particularly interested in trading data that could reveal fraudulent practices to manipulate market prices.

Ben Armstrong, popularly known as “BitBoy,” had been a prominent figure at Hit Network until his departure in August 2023 amid allegations of substance abuse, which he has partially acknowledged.

Armstrong’s involvement with these tokens, including several that he touted as lucrative investments on his YouTube channel, is now under scrutiny. Notably, the tokens Armstrong promoted did not consistently perform well, often declining in value contrary to his predictions.

The influencer’s exit from Hit Network was marked by controversy, including a legal dispute over a Lamborghini and public allegations against his former colleagues. Armstrong’s recent comments suggest he welcomes the CFTC’s inquiry as a means to validate his grievances against the industry and former associates.

One of the tokens at the center of the investigation is BEN, a memecoin launched by the influencer known as ben.eth in May 2023. Armstrong briefly joined the token’s core team and later took over as CEO, a position he held until his separation from the project earlier this year. His involvement raised concerns within Hit Network, contributing to his eventual ouster.