Influencer’s NFT journey leads to a $7M token Presale and settlement demand

TL;DR Breakdown

  • A famous influencer faces a settlement demand following a $7 million NFT presale.
  •  This surprising development has again turned the spotlight on the tumultuous world of NFTs.
  • A lawyer served a settlement demand via NFT to an alleged influencer identified as ‘Ben.eth’.

In a stunning turn of events, a prominent social media influencer finds himself embroiled in a heated legal battle after a controversial multimillion-dollar NFT presale. According to reports, an NFT influencer was served a settlement demand via an NFT. The settlement casually dropped the “F-bomb” multiple times, stating that the influencer committed wire fraud “at a minimum” on a recent $7 million token offering.

The high-profile transaction, which garnered widespread attention and divided the crypto community, has now led to a significant settlement demand, leaving the influencer’s future hanging in the balance.

The controversial NFT presale

The NFT market has experienced a meteoric rise in recent years, with digital assets fetching exorbitant prices and captivating both investors and collectors alike. However, the presale of  Ben.eth’s NFT took this phenomenon to new heights. The influencer successfully generated an astounding $7 million in revenue from the initial offering, setting a record for presale earnings in the NFT space.

Mike Kanovitz, a partner at legal firm Loevy & Loevy, announced in a tweet on Saturday 20 that a settlement demand letter has been served as an NFT to the wallet address connected with the influencer known as Ben.eth, whose true identity is unknown.

Kanovitz alleged that Ben.eth “used a manipulative launch strategy” in regard to how the Liquidity Pools (LP) were structured and how the $PSYOP tokens were “trickled out” during the recent presale. Ben.eth tweeted shortly after the accusation that 50% of the tokens had been distributed and that “the remainder will be distributed shortly.”

The artwork in question, a visually captivating and unique digital creation, was touted as a groundbreaking piece of digital art that would redefine the boundaries of the NFT market. As anticipation grew, crypto enthusiasts and art collectors flocked to secure a piece of this groundbreaking creation, fueling unprecedented hype and excitement.

NFT case set new legal grounds in the DeFi industry

This incident casts a harsh light on the complexities of the NFT market, which continues to be beset by ambiguity and controversy. The predicament of the influencer is the most recent in a series of incidents that illustrate the potential pitfalls in this swiftly evolving space.

The letter from Kanovitz also stated that Ben.eth was culpable of wire fraud, which is a predicate act for racketeering and the reason he was awarded triple damages. The letter requested a refund and threatened legal action if refunds were not issued. He claimed Ben.eth “used a manipulative launch strategy” for the Psyop (PSYOP) token, which raised $7 million in 72 hours during its inaugural presale.

Kanovitz threatened to issue a subpoena for the alleged influencer’s communications, claiming that it would be the final nail in the casket. Furthermore, he suggested a potentially “painful” process for Ben.eth if the letter is not complied with, following a court filing. Kanovitz added that he will disclose the identities of the influencers’ co-conspirators in real life (IRL).

Kanovitz stated that issuing a refund is the honorable thing to do. However, he threatened legal action if refunds were not issued:

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.

Mike Kanovitz

Ben.eth retweeted the letter several hours later on May 20 and stated that it is “so unprofessional that it could get them in trouble with the bar association.”

The conflict between Kanovitz and Ben is quite heated, as Kanovitz accuses Ben of grave misconduct. However, it is difficult to determine who is in the right without more information. Nevertheless, it is imperative that such allegations be considered seriously, especially when they involve such large sums of money. Time will tell how this situation will play out and what the ultimate result will be for all parties involved.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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