A non-fungible token (NFT) influencer received a liquidation demand via an NFT, which coincidentally dropped the "F-bomb" multiple times, alleging that the influencer engaged in wire fraud "at a minimum" in a recent token pre-sale. of $7 million.
On May 20, Mike Kanovitz, a partner at law firm Loevy & Loevy, stated in a tweet that a liquidation demand letter as NFT was sent to the wallet address associated with the influencer known as Ben.eth, whose real name identity remains unrevealed. .
TO @eth_ben and @psyopeth :
My law firm, Loevy & Loevy, will file a class action lawsuit against you on your behalf IRL if you do not reimburse all $PSYOP pre-sale buyers immediately.
Our liquidation demand letter has served as NFT to your ben.eth address, which can be viewed here:... pic.twitter.com/qaxhECDUhbโMike Kanovitz (@MikeKanovitz) May 19, 2023
It alleged that Ben.eth โused a manipulative launch strategyโ for the Psyop (PSYOP) token, which raised $7 million in its initial presale over 72 hours.
Concerns revolved around how the liquidity funds (LP) were structured and how the tokens "leaked" after the pre-sale.
Shortly after the letter was posted on Twitter, Ben.eth tweeted that 50% of the tokens had been sent and "the rest will be sent shortly."
โAt a minimum, you would be guilty of wire fraud, which is a defining act for organized crime and the basis for an award of treble damages against you ($7 million becomes $21 million),โ the letter said.
Kanovitz noted that a "refund is the thing to do." However, he warned about potential legal action if no refunds were provided:
โSo, just return the ETH. The matter will be over, and you and your victims can get on with your lives. But if you insist on screwing over thousands of people, my law firm will step in to right that injustice."
In addition, he warned of a potentially "painful" process for Ben.eth if the letter is not followed through.
โThe lawsuit will name you personally, as well as your alias, and will be delivered to your home,โ the letter said.
Kanovitz further threatened to subpoena the influencer's communications, saying "that evidence will put the final nails in his coffin."
He added that he would reveal the real-life identities of the influencers' co-conspirators.
Kanovitz concluded the letter by saying: โYou are participating in a real fraud and it is hurting real people. There will be consequences if you don't do it right."
Related: NFT Injunctions Could Become Standard in Crypto-Related Litigation: Lawyers
In response to the letter, Ben.eth retweeted it several hours later, on May 20, stating that it is "so unprofessional that it could get you in trouble with the bar association."
This letter is so unprofessional that it could get you in trouble with the bar association. $PSYOP in abundance here. https://t.co/VlWuK8YHLx
โ ben.eth (@eth_ben) May 19, 2023
Cointelegraph reached out to Ben.eth for comment, but did not receive a response per post.
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