2 - 4 minute read
A federal magistrate judge has ordered BitBoy Crypto’s Ben Armstrong to appear in Florida on April 20th to address allegations of harassment made by the legal team representing crypto influencers in a $1 billion lawsuit that names Armstrong as one of several YouTubers allegedly promoting FTX crypto fraud without disclosing compensation. Edwin Garrison and his legal team have claimed that Armstrong harassed them with “endless phone calls, tweets, and emails,” including voicemails filled with vulgarities and social media posts suggesting threats.
Armstrong is no stranger to online controversy, regularly insulting high-profile figures such as European Central Bank President Christine Lagarde, and being dismissive of the class action lawsuit in question. He claims that the original lawsuit regarding the disclosure of compensation from FTX has “absolutely no merit.”
Despite this, as the scope of the attacks and death threats increased, the legal team was compelled to open an FBI investigation into Armstrong, as well as investigative files by local police authorities for plaintiffs’ counsel and their families.
This case is a reminder for traders to be vigilant about the risks associated with investing in cryptocurrencies. While many investors have benefited from the volatility and growth of cryptocurrencies, they remain a riskier asset class due to limited regulation and a lack of transparency. In many cases, influencers and social media personalities have promoted cryptocurrencies without disclosing compensation to their followers, leading to widespread fraud.
Additionally, traders must be aware that social media personalities can have a significant impact on the market. Armstrong’s behavior has undoubtedly had an impact on the cryptocurrency market. The continued harassment of the plaintiffs and their legal team has created a lot of negative publicity around cryptocurrency and cryptocurrencies, which will likely cause a dip in the market’s performance.
The Bottom Line
While it is still uncertain how the lawsuit against Armstrong and other influencers will be resolved, traders should be mindful of the risks associated with investing in cryptocurrencies, particularly when social media personalities promote them. Following this case, we may see increased scrutiny and regulation of the cryptocurrency market, including more stringent guidelines on the marketing and promotion of cryptocurrencies. Traders should stay informed and vigilant about the evolving landscape of cryptocurrency and adjust their investment strategies accordingly.