BEN and PSYOP, two meme coins that gained attention in the wake of the PEPE meme coin craze, are now facing legal issues. Ben.eth, the creator of these coins, is threatened with class action lawsuits and allegations of bank fraud. Here are the details…
Lawsuit shock to meme coin projects
On May 20, Mike Kanovitz, partner at law firm Loevy & Loevy and CEO of Jurat Blockchains, announced via Twitter his intention to file a lawsuit against ben.eth for failing to reimburse PSYOP presale buyers. This also led to an unusual move: Kanovitz sent a letter to ben.eth’s address as an NFT (non-fungible token).
In the letter, ben.eth is accused of misleading investors, collecting extortion, fraud and bank fraud. Over $7 million was raised in the pre-sale of PSYOP, and Kanovitz is seeking $21 million in damages if the class action continues. As part of the settlement, Kanovitz demanded that ben.eth return the deposited Ethereum (ETH) to the affected investors.
To @eth_ben and @psyopeth :
My law firm, Loevy & Loevy, will be filing a class action against you in your IRL name if you do not refund all of the $PSYOP presale purchasers immediately.
Our settlement demand letter has served as an NFT to your ben.eth address, viewable here:… pic.twitter.com/qaxhECDUhb— Mike Kanovitz (@MikeKanovitz) May 19, 2023
Case thought gains support
ben.eth previously associated PSYOP with media personalities Andrew Tate and Ben “Bitboy” Armstrong. As we reported as Kriptokoin.com, it was pointed out that Ben Armstrong bought and later sold all BEN token assets. More than one person has expressed their intention to join the class action lawsuit against ben.eth, while others are considering filing individual lawsuits. Despite legal challenges, ben.eth took a half-hearted approach, making jokes about the case and focusing on airdrops.
In addition, on-chain researcher ZachXBT presented evidence that ben.eth misled investors and raised 10,000 ETH from the PSYOP pre-sale. ZachXBT is revealing a variety of meme coins as unsuspecting traders fall victim to the lure of meme coin season. The BEN token is currently trading at $0.000000060. It has dropped 2 percent in the last 24 hours. Meanwhile, the price of PSYOP rose 200 percent over the same period to $0.000056 after the pre-sale. However, it is falling steadily.
*pretends to be surprised* pic.twitter.com/I1qO3uFLy2
— ZachXBT (@zachxbt) May 19, 2023
As a result, Mike Kanovitz, a partner of Loevy & Loevy, accused ben.eth, creator of PSYOP, on social media of deliberately misleading token buyers and failing to fulfill their commitments. He also claimed that ben.eth created a liquidity pool with the wrong structure. Also, the promise of a gradual release of the token turned out to be false, as 90 percent of the PSYOP distribution allocated to investors has still not entered the market. In response, ben.eth dismissed the lawsuit, criticizing the relaxed tone and unprofessional typos in the paper. Loevy & Loevy partner stressed that Jon Loevy lacked his approval.
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