Influencer Receives NFT-Backed Settlement Demand After Successful $7M Token Presale

Influencer Receives NFT-Backed Settlement Demand After Successful $7M Token Presale

A nonfungible token (NFT) influencer served with settlement demand via NFT

A nonfungible token (NFT) influencer has been served with a settlement demand via an 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.

Settlement demand served as NFT

On May 20, Mike Kanovitz, a partner at law firm Loevy & Loevy, stated in a tweet that a settlement demand letter had 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 Psyop (PSYOP) token, which raised $7 million in its initial presale over 72 hours.

Concerns regarding liquidity pools and token distribution

The concerns revolved around how the liquidity pools (LP) were structured and how the tokens “trickled out” after the presale.

Shortly after the letter was published on Twitter, Ben.eth tweeted that 50% of the tokens had been sent out and “the rest will be sent in short order.”

Potential legal consequences

“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.

Kanovitz noted 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 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 to subpoena the influencer’s communications, saying “that evidence will put the final nails in your coffin.”

He added that he would reveal the real-life identities of the influencers’ co-conspirators.

Kanovitz concluded the letter by stating, “You are engaging in real fraud, and it is hurting real people. There will be consequences if you don’t make it right.”

Ben.eth’s response

In response to the letter, Ben.eth retweeted it several hours later on May 20, stating that it is “so unprofessional it could get them in trouble with the bar association.”