A “manipulative launch strategy” was alleged over how the Liquidity Pools were structured and the way that the tokens "trickled out."
A nonfungible token (NFT) influencer got served with a settlement demand via NFT, which casually dropped the "F bomb" several times and alleged the influencer engaged in wire fraud "at a minimum" on a recent $7 million token presale.
Lawyer Mike Kanovitz, a partner at Loevy & Loevy, took to Twitter on May 20 to state that a “settlement demand letter has served as an NFT” to the wallet address associated with the alleged influencer known as ‘Ben.eth,’ whose real identity remains undisclosed.
He alleged that Ben.eth “used a manipulative launch strategy” over how the Liquidity Pools (LP) were structured and the way that the tokens "trickled out" on the recent presale for his token $PSYOP – shortly after the accusationBen.eth tweeted that 50% of the tokens have been sent out and “the rest will be sent in short order.”
“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.
To @eth_ben and @psyopeth :
— Mike Kanovitz (@MikeKanovitz) May 19, 2023
My law firm, Loevy & Loevy, will be filing a class action against you in your IRL name if you do not refund all of the $PSYOP presale purchasers immediately.
Our settlement demand letter has served as an NFT to your ben.eth address, viewable here:… pic.twitter.com/qaxhECDUhb
Kanovitz stated in the letter 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 suggested a potential “painful” process for Ben.eth, following a court filing, if the letter is not cooperated with.
“The suit will name you personally as well as your alias and will be served at your home” he stated.
Kanovitz further threatened a subpoena on the alleged influencers communications which he said, “that evidence will put the final nails in your coffin.”
He further added that he will reveal the in-real-life (IRL) identities of the influencers' co-conspirators.
Kanovitz concluded the letter stating “you are engaging in real fraud, and it is hurting real people. There will be consequences if you don’t make it right.”
Related: NFT court orders could become a norm in crypto-related litigation: Lawyers
Ben.eth responded to the letter hours later on May 20 saying the letter is “so unprofessional it could get them in trouble with the bar association.”
Cointelegraph reached out to Ben.eth for comment but did not receive a response by the time of publication.
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