Lawyers say legal scrutiny for Beneth’s PSYOP tokens is uncertain

Ben.eth, a memecoin creator who has remained anonymous, has launched at least three controversial memecoins in recent weeks. Crypto lawyers suggest that he could be targeted by United States regulators. Ben.eth was previously an unknown personality in the crypto community; however, his Twitter following has grown nearly five-fold in May. Ben.eth has received thousands of ETH for pre-sales of these memecoins, which require Ether (ETH) to be directly sent to him. His wallet now holds 10,946 ETH, equivalent to $20.8 million. While supporters of Ben.eth have defended the legitimacy of the token sales, others warn that his actions could face the wrath of regulators and disgruntled investors. Michael Kanovitz, a partner at Loevy & Loevy, recently sent a profanity-laden letter via NFT to Ben.eth threatening a class-action suit against him. Kanovitz alleges that Ben.eth used a manipulative launch strategy in the PSYOP presale and that he promised returns on investment that would be “several fold or greater.” The Securities and Exchange Commission (SEC) might consider the tokens unregistered securities, which could see Ben.eth facing possible fines and penalties. Cointelegraph has contacted Ben.eth on multiple occasions but has not received a response. Meanwhile, other influencers have attempted to capture some of the recent memecoin magic, asking followers to send ETH for essentially “nothing.” American socialite Kim Kardashian has been fined by the SEC for crypto promotions. In October, the regulator fined Kardashian $1.26 million for her involvement in the promotion of EthereumMax (EMAX). In February, NBA player Paul Pierce made a similar-sized settlement with the regulator.

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