The legal fallout from the collapse of crypto exchange FTX continues, with some high-profile names opting to settle while others are dismissed entirely.
Crypto influencer Ben “BitBoy” Armstrong is no longer facing a lawsuit related to his promotion of FTX. Lawyers recently filed notice that they are voluntarily dismissing claims against him. Armstrong had not yet responded to the allegations in court.
Meanwhile, Jacksonville Jaguars quarterback Trevor Lawrence, YouTuber Kevin Paffrath, and influencer Tom Nash have agreed to confidential settlements to resolve claims against them. A judge still needs to approve the deals to officially remove them from the ongoing litigation.
According to recent reports, lawyers leading the case say they are in discussions about potential settlements with other celebrities who promoted FTX, including athletes and social media stars. More deals are likely to come.
The lawsuit aims to claw back money paid to celebrity endorsers and sports teams that partnered with FTX before its collapse. A recent filing revealed FTX spent millions on deals with Shaquille O’Neal, the NBA’s Miami Heat, and others. It’s uncertain how much could actually be recovered.
The settlements come amid FTX founder Sam Bankman-Fried’s ongoing criminal case. He faces fraud charges and is set to go to trial in October. Other recent developments include FTX reopening its claims portal following a security breach, and a judge approving the sale of billions in crypto from the company’s estate.
Armstrong recently found himself embroiled in a series of controversies and allegations. One of the main accusations leveled against him is fraudulent activities, with users calling for severe consequences, including imprisonment. Some users believe that Armstrong lost a significant amount of money during a recent crash in alternative cryptocurrencies and is now attempting to scam his followers to recoup his losses.
In response to these allegations, Armstrong has vehemently denied any wrongdoing. He has shared negative results from a drug test to counter accusations of drug misuse, which were initially cited as the reason for his removal from BJ Investment Holdings, the parent company of BitBoy. Armstrong labels these charges as “libelous” and “100% false,” claiming that they are part of a takeover plot against him.
Armstrong has also been involved in legal disputes, including a defamation case against fellow YouTuber Erling Mengshoel Jr. However, he withdrew the case following public outcry.
In a surprising turn of events, it was revealed that BitBoy has been fired from the company managing the BitBoy brand. This news was shared by cryptocurrency influencer Jason Williams, who stated that Armstrong is no longer associated with Hit Network, BJ Investment Holdings, and all subsidiary brands. Armstrong has been the face of the BitBoy brand until now.
While these controversies have caused a significant stir in the cryptocurrency community, it is important to note that the full extent of the truth behind these allegations is still unclear. As the situation continues to unfold, it remains to be seen how Armstrong will navigate these challenges and what impact they will have on his reputation and career in the cryptocurrency industry.