Influencer’s NFT Journey Leads to a $7M Token Presale and Settlement Claim – Cryptopolitan

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

The high-profile transaction, which gained 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 pre-sale

The NFT market has experienced a tremendous increase in recent years, with digital assets commanding exorbitant prices and captivating both investors and collectors. However, the sale of Ben.eth’s NFT took this phenomenon to new heights. The influencer successfully generated an astonishing $7 million in revenue from its initial offering, setting a record for pre-sale revenue in the NFT space.

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

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

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.

The NFT case set new legal foundations in the DeFi industry

This incident casts a harsh light on the complexity of the NFT market, which is still characterized by ambiguity and controversy. The influencer’s predicament is the latest in a series of incidents that illustrate the potential pitfalls in this rapidly evolving space.

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

Kanovitz threatened to issue a subpoena for the alleged influencer’s communications, claiming that would be the final nail in the coffin. Furthermore, he suggested a potentially “painful” process for Ben.eth if the letter is not followed, after a court case. Kanovitz added that he will reveal 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 case will be over and you and your victims can all move on with their lives. But if you insist on screwing 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, stating that it is “so unprofessional it could get them in trouble with the Bar Association.”