Legal Fallout Looms for Ben.eth’s PSYOP Tokens, Lawyers Weigh In

Crypto lawyers are warning that Ben.eth, the creator of at least three controversial memecoins, could come under scrutiny by United States regulators. Ben.eth, a previously lesser-known influencer on Twitter, has seen his following increase almost five-fold in May after launching Ben Coin (BEN), PSYOP, and LOYAL. Pre-sales of these memecoins require Ethereum to be sent directly to Ben.eth, allowing him to gather thousands of ETH, equivalent to $20.8 million. While some supporters have defended the legitimacy of the token sales, others warn that regulators and disgruntled investors could take issue with the influencer’s actions. Michael Kanovitz, a partner at Loevy & Loevy, warns that the Psyop launch is a classic example of the concerns the Securities and Exchange Commission (SEC) has identified in actions against celebrities like Kim Kardashian and Paul Pierce. Kanovitz alleges that Ben promised Psyop’s returns on investment would be several-fold or greater and claimed he potentially manipulated the token’s price by coordinating with other influencers to spread misinformation. Other influencers have similarly attempted to capitalise on the recent memecoin trend by asking followers to send Ethereum for essentially “nothing”, with some wallets accumulating balances of hundreds of thousands of dollars in a short period.

J-S Tremblay
About the author - J-S Tremblay

I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...

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