In an unusual turn of events, the memecoin creator of $PSYOP, who goes by the name ‘Ben.eth‘, was served a legal notice in the form of an NFT from Mike Kanovitz, a Web3 advocate and partner of the law firm Loevy & Loevy.
The controversy concerns the $PSYOP liquidity pools and the slow rate at which the tokens were distributed following the presale. Kanovitz accused the creator of using “manipulative tactics” during the token’s presale, which garnered $7 million over 72 hours.
NFT Legal Notice forms part of a Raging Twitter War
Kanovitz disbursed the settlement demand letter as an NFT to Ben.eth’s wallet before publishing the same document on his Twitter account. In addition, a link to the NFT letter can be also found on NFT Scan.
To @eth_ben and @psyopeth :
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
— Mike Kanovitz (@MikeKanovitz) May 19, 2023
This class action asserts Ben.eth of committing wire fraud: “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).”
Kanovitz advises that refunding all investors their ETH is the stand-up thing to do, threatening to take legal action if not issuing refunds shortly.
A few hours later, Ben.eth posted the letter on Twitter, saying, “This letter is so unprofessional it could get them in trouble with the bar association. $PSYOP galore out here”:
This letter is so unprofessional it could get them in trouble with the bar association. $PSYOP galore out here. https://t.co/VlWuK8YHLx
— ben.eth (@eth_ben) May 19, 2023
After letting the legal notice publicly brew for 24 hours, Ben returned to his social media channel to assure $PSYOP buyers that they will shortly receive the token as promised — if they are not a part of the 50% who already have:
SO FAR, 50% OF $PSYOP PRESALE TOKENS HAVE BEEN SENT OUT. THE REST WILL BE SENT IN SHORT ORDER.
— ben.eth (@eth_ben) May 20, 2023
$PSYOP buyers are keenly awaiting their tokens or ETH back, while Kanovitz remains firm in demanding full refunds. Ben.eth, on the flip side, has come to terms with the fact that he is “Never going to beat the accusations”, showcasing his real-world identity in a bid to prove his innocence:
This battle marks an intriguing intersection of legal challenges, accountability, and digital assets in the Web3 sphere. Consequently, this legal threat underlies the seriousness of ethical practices, transparency, and regulatory compliance in the complex and evolving world of NFTs.
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