Influencer served settlement demand via NFT, following $7M token presale
A “manipulative launch strategy” was alleged over how the Liquidity Pools were structured and the way that the tokens “trickled out.”
A nonfungible token (NFT) influencer has been served with a settlement demand via NFT – which casually dropped the “F bomb” several times – alleging that the influencer engaged in wire fraud “at a minimum,” on a recent $7 million token presale.
Lawyer Mike Kanovitz, a partner at Loevy & Loevy, stated in a tweet on May 20 that a settlement demand letter has been served as an NFT to the wallet address associated with the influencer known as ‘Ben.eth,’ whose real identity remains undisclosed.
He alleged that Ben.eth “used a manipulative launch strategy” for the token ‘$PSYOP,’ which raised $7 million in its inital pre-sale over 72 hours.
The concerns revolved around how the Liquidity Pools (LP) were structured and the way that the tokens “trickled out” during the presale.
Shortly after the accusation, Ben.eth tweeted that 50% of the tokens have been sent out and “the rest will be sent in short order.”
“At a minimum, you would be guilty of wire fraud, which is a predicate act for racketeering and the basis for a treble damages award against you ($7 million becomes $21 million)” the letter stated.
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
Kanovitz stated in the letter that a “refund is the stand-up thing to do.” However, he warned of potential legal action if refunds weren’t provided:
“So, just send back the ETH. The matter will be over, and you and your victims can all go on with their lives. But if you insist on fucking over thousands of people, my law firm will step up to right that injustice.”
Furthermore, he warned of a potentially “painful” process for Ben.eth, following a court filing, if the letter is not complied with
“The suit will name you personally as well as your alias and will be served at your home” the letter stated.
Kanovitz further threatened a subpoena on the alleged influencers communications which he said, “that evidence will put the final nails in your coffin.”
He further added that he will reveal the in-real-life (IRL) identities of the influencers’ co-conspirators.
Kanovitz concluded the letter stating “you are engaging in real fraud, and it is hurting real people. There will be consequences if you don’t make it right.”
Related: NFT court orders could become a norm in crypto-related litigation: Lawyers
In response to the letter, Ben.eth retweeted the letter several hours later on May 20 stating that the letter is “so unprofessional it could get them in trouble with the bar association.”
This letter is so unprofessional it could get them in trouble with the bar association. $PSYOP galore out here. https://t.co/VlWuK8YHLx
— ben.eth (@eth_ben) May 19, 2023
Cointelegraph reached out to Ben.eth for comment but did not receive a response by the time of publication.
