Or face a class action lawsuit? An article analyzes the whole process of the "fraud incident" of Twitter celebrity Ben

PANews

特邀专栏作者

2023-06-01 16:24 (UTC+8)

This article is about 1815 words, reading the full article takes about 3 minutes

If Ben.eth does not return the funds to investors, it is likely to face a brutal class action lawsuit.

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If Ben.eth does not return the funds to investors, it is likely to face a brutal class action lawsuit.

Original source:Crypto KOL Splin Teron

Original compilation: PANews

Ben.eth, the creator of the meme coin PSYOP and BEN tokens, has recently attracted widespread attention from the crypto community. Mike Kanovitz, a partner at the law firm Loevy & Loevy, believes that the PSYOP project is involved in wire transfer fraud, while Ben.eth is misleading about token purchases. 90% of the PSYOP tokens allocated to investors are still not released. This series of operations may cause Ben.eth to eventually have to pay up to 21 million US dollars. Compensation, if Ben.eth does not return funds to investors, it is likely to face a brutal class action lawsuit.

In this context, this article will conduct in-depth research on Ben.eth's personality and related token projects, but it should be noted that this article will not give any value judgments, but only share the information currently collected.

Ben.eth is a typical NFT "Internet celebrity". When he first entered the encryption industry, he had about 13,000 fan subscriptions. However, when he launched the iconic meme token "BEN", everything happened Change.

Do you think investors are "stupid and rich"? An Analysis of the Whole Process of Twitter Celebrity Ben's "Fraud Incident"

Initially, the BEN token was not popular, but how can it become popular? The answer: an influencer with more influence and a larger audience is needed. Soon, another “influencer” Ben Armstrong (@Bitboy_Crypto) surfaced, told Ben.eth that he was willing to help and started promoting the “BEN” token in tweets.

Do you think investors are "stupid and rich"? An Analysis of the Whole Process of Twitter Celebrity Ben's "Fraud Incident"

At the same time, with the increasing exposure of BEN tokens in the encryption community, people's discussions on this token have also begun to increase, and the number of subscribers to Ben.eth's Twitter account @eth_ben has increased significantly, showing a sharp increase , and it is still growing (from 13,000 to the current nearly 100,000).

Do you think investors are "stupid and rich"? An Analysis of the Whole Process of Twitter Celebrity Ben's "Fraud Incident"

About two weeks ago, Ben.eth launched a new token called "PSYOP". In the encryption industry, new tokens are often pre-sold first, so Ben.eth shared the address participating in the pre-sale on social media and instructed participants to send ETH to this address. Soon, however, a developer named “vydamo” popped up on social media and claimed that Ben.eth did not intend to launch the “PSYOP” token project fairly.

At the same time, Andrew Tate, another crypto community "Internet celebrity", posted a video on social media, claiming that he had nothing to do with PSYOP tokens. As a result, this operation was counterproductive, and the crypto community was not interested in PSYOP tokens. Decrease instead of increase. But what happened next made people feel at a loss. Ben.eth suddenly stopped the pre-sale of the PSYOP token project and announced that the funds would be returned to the previous investors in the future. The person whose wallet sends the money is compensated. Unfortunately, this promise was never kept.

People who lost their funds started a riot, and they had to hire lawyers to launch a class action lawsuit to try to recover their money. Unexpectedly, despite the constant negative news, Ben.eth managed to raise about 4,000 ETH through the pre-sale of the PSYOP token project.

Ben.eth made a lot of money, but for those who participated in the PSYOP token project, they had to face the dilemma of huge losses. On-chain analyst Looksonchain cited three investor cases, including:
Investors with addresses starting with "0xac34" sent 29 ETH to Ben.eth and received 5,095,139 PSYOP, but if they sell all PSYOP tokens now, they can only get 3 ETH;
veg.eth sent 21 ETH to Ben.eth and received 3,724,258 PSYOP tokens (now sold for only 2.15 ETH);

hot.izebel.eth sent 20 ETH to Ben.eth and received 3,546,912 PSYOP tokens (now selling for only 2.05 ETH).

In addition, the reason why PSYOP tokens have attracted a lot of attention from investors is actually related to another giant whale, cryptopolitan.eth. On-chain data shows that cryptopolitan.eth spent 233 ETH (worth about $428,616) to purchase 251.8 million PSYOP tokens were sold at an average purchase price of $0.001702, making the whale the 7th largest holder of PSYOP.

Looking back at Ben.eth, he is actually a very low-key person, which can be glimpsed from the tweets he released.

Do you think investors are "stupid and rich"? An Analysis of the Whole Process of Twitter Celebrity Ben's "Fraud Incident"

However, when the PSYOP token incident was raging, Uniswap suddenly stopped the BEN token trading service without any announcement (perhaps out of concerns about potential risks), but Ben Armstrong claimed that it was because of the BEN token project LOGO Temporary removal due to replacement.

Do you think investors are "stupid and rich"? An Analysis of the Whole Process of Twitter Celebrity Ben's "Fraud Incident"

However, what happened next is really hard to evaluate. Generally speaking, if your token project is considered to be suspected of fraud, the issuer will tend to restrain itself. Unexpectedly, Ben.eth In line with this, he announced yet another new token called “LOYAL,” which as of this writing has attracted over 11,000 ETH, and the money is still pouring in.

According to the "chain detective" @zachxbt, as of now, 112 people have sent funds directly from the exchange to the LOYAL token wallet address. It is conceivable that these funds are likely to end up in Ben.eth's own pocket.

Not only that, but as can be seen from the screenshot of the tweet posted by Ben.eth below, he has no intention of stopping.