Crypto lawyers have scrutinized the person behind at least three controversial altcoin launches in recent weeks. He suggests that the anonymous creator of these altcoins, Ben.eth, will fall under the target of US regulators. Here are the details…
These altcoin projects could be of interest to regulators
A previously little-known personality in the crypto community, Ben.eth’s Twitter followers increased almost fivefold in May. Because it has launched at least three meme coins in recent weeks. These are as follows: Ben Coin (ME), PSYOP and LOYAL. Pre-sales of these meme coins that require Ethereum would be sent directly to the creator himself. Users allowed Ben.eth to collect thousands of ETH. He currently has 10,946 ETH, equivalent to $20.8 million, in his wallet.
Ben.eth’s supporters defend the legitimacy of token sales. Others point to the possibility that the influencer’s actions may come into the focus of regulators. He also warns that Ben.eth may incur the wrath of disgruntled investors. Michael Kanovitz, one of the partners of Loevy & Loevy, spoke about the launch of Psyop. He said this is “a classic example of the SEC’s actions against Kim Kardashian and Paul Pierce.”
Threat of class action against ben.eth
Kanovitz recently sent a distasteful letter to Ben.eth via NFT. He claimed that Influencer “used a manipulative launch strategy” in the PSYOP pre-sale. Then, Kanovitz mentioned the threat of a class action lawsuit against Ben.eth. Kanovitz noted that Ben promised Psyop’s return on investment would be “several times or more.” So he said he was “coordinating with other influencers to spread false information.” Thus, he claimed that he potentially manipulated the token price. Pointing to BEN and LOYAL, Kanovitz said he “continues to gather evidence” about the alleged plan.
Link to the letter is here: https://t.co/6bXlWVBNgQ
— Mike Kanovitz (@MikeKanovitz) May 19, 2023
Michael Bacina, attorney and partner at Piper Alderman, said the legal question Ben may find himself in depends on whether the sales are being investigated and which U.S. regulator is conducting that investigation. For example, the Securities and Exchange Commission may believe that tokens are investment contracts. It can treat them as unregistered securities. This causes Ben to face possible fines and penalties.
They are sending Ethereum in exchange for “nothing”!
Collaborator Ben Armstrong thinks Ben.eth’s latest token launch, LOYAL, will rival Uniswap. It is also thought to have entered the market for a developing decentralized exchange (DEX) called PsyDex and a “meme coin launchpad”. Meanwhile, other influencers have asked their followers to send ETH in exchange for essentially “nothing”. So they tried to capture some of the latest meme coin magic.
7 minutes in and already $76.38 worth of ETH! pic.twitter.com/49hZeUcMBp
— PAULY (@Pauly0x) May 30, 2023
According to Etherscan, the wallet address “yougetnothing.eth” currently shows 411 ETH balances worth $780,000. Moreover, it has processed close to 4,000 transactions in the last 13 hours. cryptocoin.com As we also reported, other influencers like Kim Kardashian have been penalized by the SEC for their crypto promotions. In October, the regulator fined Kardashian $1.26 million for participating in the promotion of EthereumMax (EMAX). In February, NBA player Paul Pierce made a similar deal with the regulator.
