PSYOP Faces Legal Action and Fraud Allegations Over Losses

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Early investors in PSYOP tokens are losing over half of their investment. Several crypto community members have labeled the asset a scam.

Lookonchain reported how several traders who participated in the PSYOP presale received airdrops now worth half of their investment.

Early Investors in Loss

One address, 0xf4ae, spent 29 ETH on presale, getting over 5 million units of PSYOP as an airdrop. These airdropped tokens are worth less than 3 ETH, representing an over 90% loss for the investor.

The same is true for other top participants in the presale. Veg.eth sent 21 ETH and received 3.7 PSYOP million worth 2.15 ETH and hot.izebel.eth sent 20 ETH and received 3.5 million PSYOP worth 2.05 ETH.

Interestingly, the problem is not just about those participating in the presale, as trading the token is also not profitable. Hot.izebel.eth bought 3.97 million PSYOP for 2.28 ETH but sold for 2.2659 ETH and paid a gas fee of 0.052 ETH.

While Ben.eth has promised more airdrops, how that will help investors cover their losses is unclear. After a second round of airdrop, the address that participated in the presale with 29 ETH received 25.5 million PSYOP worth 14 ETH, Lookonchain said.

PSYOP Investment
PSYOP (Source: Lookonchain)

PSYOP Dubbed a Scam

A media studio Psyop distanced itself from the memecoin after several community members linked the asset to the firm. The studio described the PSYOP token as a complete scam, adding that it has no relation to it.

ZachXBT has warned the community about the token, tweeting about the unreliability of the project’s founder. Several other community members have also described the token as a scam.

Meanwhile, the hype surrounding the token led to the launch of several similarly named assets. On May 18, Ben.eth was forced to issue a disclaimer that he was yet to release a token.

PSYOP Creator Threatened With Lawsuit

On May 20, Mike Kanovitz, a partner at the law firm Loevy & Loevy, revealed his firm would be filing a class-action lawsuit against the PSYOP token founder if he failed to refund participants of the token’s presale.

The letter said Ben.eth could face racketeering charges, wire fraud, and misleading investors. Kanovitz added that investors could receive up to $21 million in damages.

PSYOP Lawsuit
PSYOP Lawsuit (Source: Twitter)

Ben.eth made over $7 million from the presale and made several claims about the PSYOP token, including linking it to Andrew Tate.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.

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