The world of crypto never ceases to surprise – the latest buzz is about a nonfungible token (NFT) influencer, known only by his online alias Ben.eth, being served a legal settlement demand through an NFT itself! The accusation? Allegedly engineering a “deceptive launch” for the new Psyop (PSYOP) token, which raised a staggering $7 million in just 72 hours during its initial presale.
Legal titan Mike Kanovitz of Loevy & Loevy dropped the bombshell on Twitter on May 20. The lawsuit alleges that Ben.eth orchestrated a suspicious strategy around the liquidity pools (LP) and the distribution of the tokens post-presale. Adding a twist to this tale, the demand letter was riddled with casual expletives, accusing Ben.eth of “wire fraud, at a minimum” – potentially escalating the case to a $21 million charge if proved as racketeering.
In response to the lawsuit served up in an NFT, Ben.eth declared that half the tokens have been distributed already, promising swift action to dispense the remaining. However, Kanovitz’s demands were simple yet stern – provide a refund or face legal repercussions. He made clear that failure to comply would lead to a lawsuit against Ben.eth’s real identity and a deep dive into his communications, which could further compound the case.
Ben.eth’s reaction was one of disdain, retweeting the letter and deeming it so unprofessional it could put Loevy & Loevy in hot water with the bar association. The drama continues to unfold in this unprecedented case where blockchain meets law.