A non-fungible token (NFT) issuer received a settlement request from NFT – which dropped the “F-bomb” several times – alleging that the issuer was involved in wire fraud “and minimum” during a recent $7 million presale.
On May 20, Mike Kanovitz, a partner at the law firm Loevy & Loevy, said in a tweet that the settlement letter was submitted as an NFT to a wallet address linked to an influencer known as Ben.eth, whose real identity is him remains unrevealed. . He alleged that Ben.eth “used manipulative launch techniques” for the Psyop token (PSYOP), which raised $7 million in its first presale in 72 hours.
This concern centres on how the liquid pool (LP) is structured and how the token “pops” after the sale. Shortly after posting the letter on Twitter, Ben.eth tweeted that 50% of the tokens had been sent and “more will be sent soon.”
“At the very least, you will be guilty of wire fraud, which is an act of racketeering and the basis for the treble recovery against you ($7 million becomes $21 million),” the letter said.
Kanovitz said that “restitution is something that has to be done.” However, he warned of possible legal action if compensation is not provided. In addition, he warned of a potentially “painful” process for Ben.eth if the letter is not followed.
“This case will call you personally and by name and you will be sent to your home,” the letter reads. Kanovitz went on to threaten to send an emotional message to the media, saying that “this evidence will put the last nail in your coffin.” He added that it will reveal the true identity of the influencers.
Kanovitz closed the letter by saying, “You are engaging in real fraud and it is hurting good people. There will be consequences if you don’t do something right.
In response to the letter, Ben.eth rewrote it several hours later on May 20, saying that it was “irresponsible that it could cause them to have problems with the bar.”