Shalini Nagarajan

<div id="highlights-block_63073024d0b5d" class="highlights">
        <ul>
                <li>Ben &#8216;BitBoy&#8217; Armstrong had alleged he sustained losses of more than $75,000 after fellow YouTuber &#8216;atozy&#8217; released a critical video</li>
                <li>Atozy raised about $200,000 from the crypto community to support his legal defense</li>
            </ul>
    
</div>



<p>Ben Armstrong — the YouTuber who goes by the name &#8220;BitBoy Crypto&#8221; — <a href="https://cms.blockworks.co/crypto-youtuber-sues-fellow-influencer-who-dubbed-him-shady-dirtbag/" target="_blank" rel="noreferrer noopener">recently sued</a> fellow influencer Erling ‘Atozy’ Mengshoel in a defamation lawsuit.&nbsp;</p>



<p>He’s now apologized that the suit caught public attention, and is dumping the case.</p>



<p>“We are going to drop the lawsuit, 100%,” he said during his regular <a href="https://www.youtube.com/watch?v=0VGmTZWB4RY" target="_blank" rel="noreferrer noopener">livestream</a> on Wednesday. “I&#8217;m sorry this became public.”</p>



<p>Armstrong wanted the matter to be private, disclosing that a previous confidential lawsuit was settled to his preference. “I&#8217;ve had another lawsuit. It was behind closed doors, and it worked out great. Both parties were happy, and it was settled,” he said, without providing further details.&nbsp;</p>



<p>The YouTuber then expressed he hadn’t anticipated the public would find out about the lawsuit, as his &#8220;name is now so big.&#8221; If he did, he wouldn’t have filed it, he said (all lawsuits are <a href="https://connorreporting.com/court-records-proceedings-public/" target="_blank" rel="noreferrer noopener">public record</a>).</p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">So, about the <a href="https://twitter.com/Bitboy_Crypto?ref_src=twsrc%5Etfw">@Bitboy_Crypto</a> / <a href="https://twitter.com/atozy?ref_src=twsrc%5Etfw">@atozy</a> lawsuit: It looks like everyone is doing the right thing now. And as I suspected, it seems Ben was mislead by his lawyers who *definitely* should have known better. Yay for happy endings.</p>&mdash; 𝙳𝚊𝚟𝚒𝚍 𝚂𝚌𝚑𝚠𝚊𝚛𝚝𝚣 (@JoelKatz) <a href="https://twitter.com/JoelKatz/status/1562632406829371394?ref_src=twsrc%5Etfw">August 25, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div><figcaption>Ripple chief technology officer David Schwartz has been <a href="https://twitter.com/JoelKatz/status/1562316408301637632" target="_blank" rel="noreferrer noopener">vocal</a> about the lawsuit on Twitter.</figcaption></figure>



<p>His lawsuit filed August 12 was based on a <a href="https://www.youtube.com/watch?v=DibvroDcT88" target="_blank" rel="noreferrer noopener">November 2021 video</a>, in which Atozy describes BitBoy Crypto as “a shady dirtbag who milks his audience for a quick buck rather than giving them genuine advice.” Atozy also slams the YouTuber for hyping a flop token called Pamp and argues he shouldn’t be offering financial advice.</p>



<p>Armstrong alleged he sustained losses over $75,000, and so his claim sought general, compensatory and special damages for defamation. The claim will be walked back now that the case is being dropped.</p>



<p>“Atozy, you’re the winner here. He’s the winner. I’m the loser,” he said.</p>



<p>This isn’t the first time Armstrong planned unsuccessful legal action. After Celsius’ bankruptcy in June, he <a href="https://twitter.com/Bitboy_Crypto/status/1537987628494036994" target="_blank" rel="noreferrer noopener">intended to launch</a> a class-action lawsuit against the lender over its platform-wide withdrawal freeze. Realizing that he once promoted Celsius’ business via his BitBoy Crypto YouTube channel, he dropped the plan.</p>



<p>Armstrong’s lawyers from Krevolin &amp; Horst didn’t return Blockworks’ request for comment by press time.</p>



<h3 class="wp-block-heading"><strong>Atozy thanks crypto community for rallying</strong> defense against BitBoy</h3>



<p>Atozy <a href="https://www.youtube.com/watch?v=B95xYAfRCtY" target="_blank" rel="noreferrer noopener">uploaded a video</a> titled “I got sued” on Wednesday, in which he defended his comments against BitBoy Crypto. “When the largest crypto channel on YouTube promotes something that turned out to be a scam, that&#8217;s something worth covering,” he said.</p>



<p>He intended to fight the case. But because he didn’t have the money for it, he linked a <a href="https://www.gofundme.com/f/defending-myself-from-bitboys-frivolous-lawsuit?utm_campaign=p_lico+share-sheet&amp;utm_medium=copy_link&amp;utm_source=customer" target="_blank" rel="noreferrer noopener">GoFundMe page</a> to help defend himself against Armstrong’s “frivolous lawsuit.”&nbsp;</p>



<p>As of Thursday, Atozy had received 610 donations worth $53,407 through the campaign. Additionally, seasoned crypto podcaster Cobie <a href="https://twitter.com/crockpot_xyz/status/1562399751747821568" target="_blank" rel="noreferrer noopener">donated</a> USDC worth $100,000.</p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">He did it 🫡 <a href="https://t.co/6fNpi28dRZ">pic.twitter.com/6fNpi28dRZ</a></p>&mdash; Crockpot (@crockpot_xyz) <a href="https://twitter.com/crockpot_xyz/status/1562399751747821568?ref_src=twsrc%5Etfw">August 24, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<p>After Armstrong said the lawsuit would be scrapped, Atozy confirmed he raised about $200,000 in total. He said he would refund donors once it was officially confirmed that the suit would be pulled.&nbsp;</p>



<p>“Thank you guys for saving me,” Atozy said. </p>



<p>Still, Atozy appears skeptical, <a href="https://twitter.com/atozy/status/1562547774377168897" target="_blank" rel="noreferrer noopener">tweeting</a> late Wednesday: &#8220;If [Armstrong] has really directed his lawyer to dismiss the lawsuit against me he should prove that it&#8217;s happened by posting a copy of the dismissal WITH PREJUDICE of all claims against me.&#8221;</p>



<p>&#8220;I&#8217;m told by my lawyer that if it is not with prejudice he can refile at any time,&#8221; he said.</p>



<p><em>Updated with additional tweets from Atozy.</em></p>



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<p><strong>Get the news in your inbox. Explore Blockworks newsletters:</strong></p>



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/the-breakdown"><strong>The Breakdown</strong></a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch"><strong>0xResearch</strong></a>: Alpha in your inbox. Think like an analyst. </li>
</ul>


Atozy

Crypto YouTuber ‘BitBoy’ Drops Defamation Suit After Public Outcry

<div id="highlights-block_62fb8177f85f9" class="highlights">
        <ul>
                <li>In a video last year, Atozy called BitBoy a “shady dirtbag” who shouldn’t be offering financial advice</li>
                <li>BitBoy has previously been called out over getting paid for scam cryptocurrency promotions</li>
            </ul>
    
</div>



<p>Ben Armstrong, a YouTube influencer who goes by the name ‘BitBoy Crypto,’ sued a fellow social media personality over defamatory claims that he scammed his audience by promoting an offbeat cryptocurrency.</p>



<p>In the lawsuit, reported by <a href="https://www.law360.com/articles/1520802" target="_blank" rel="noreferrer noopener">Law360</a> on Monday, Armstrong alleged that the influencer Erling Mengshoel negatively impacted his business relations after releasing a <a href="https://www.youtube.com/watch?v=DibvroDcT88" target="_blank" rel="noreferrer noopener">November 2021 video</a> that scorns BitBoy for promoting scams and pumping micro-cap coins to fans.</p>



<p>Mengshoel — who goes by ‘Atozy’ on YouTube — says in the video that BitBoy has “been known for being a shady dirtbag who milks his audience for a quick buck rather than giving them genuine advice.”&nbsp;</p>



<p>He also claims Armstrong isn’t someone who should be offering financial advice because “you don’t know whether he’s trying to enrich you or himself,” and calls him out for talking up a washout cryptocurrency called Pamp.</p>



<p>That hasn’t sat well with Armstrong. He mentioned Atozy’s public dissing in his complaint, protesting against the use of phrases “shady dirtbag” and “dirtbag YouTuber.” Atozy’s video led viewers to believe Armstrong was paid by fraudsters to sell cryptocurrency to “suckers” willing to buy it, the complaint added.</p>



<p>Mengshoel also told viewers in the video that regulators were likely to probe such promotions, saying “it’s basically inevitable the SEC is going to get involved because dirtbags like this cannot resist the urge to take that quick buck and just milk their audience for some extra money.”</p>



<p>Armstrong alleges in his complaint that Atozy’s “attack piece” significantly impacted his business as the number of his followers reduced, damaged his reputation and caused him severe anxiety. He said he fears being “perceived as a felon, a fraud, and untrustworthy in business or in general.”</p>



<p>His lawsuit seeks general, compensatory and special damages for defamation, intentional and negligent infliction of emotional distress, tortious interference with business and violations of Georgia’s Uniform Deceptive Trade Practices Act and Fair Business Practice Act.&nbsp;</p>



<h3 class="wp-block-heading">BitBoy snubbed as hypeman by other commentators</h3>



<p>Atozy isn’t the only one criticizing BitBoy’s cryptocurrency promotions. A widely-followed Twitter user ZachXBT once shared a <a href="https://twitter.com/zachxbt/status/1478082010807742468?s=20" target="_blank" rel="noreferrer noopener">pamphlet</a> showing the influencer’s rates for reviews, livestream mentions, YouTube interviews and website articles.&nbsp;</p>



<p>A “dedicated review” was priced at $35,000, a screenshot of a media kit he shared with a potential client showed.</p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">1/ Let’s review all the direct scams Bitboy has worked with in the past. Just in case you forgot here is the flyer with how much he charges. <br><br>I received this a while back by posing as a project interested in a promotion.<br>🧵 👇 <a href="https://t.co/FkC9HUDGsc">pic.twitter.com/FkC9HUDGsc</a></p>&mdash; ZachXBT (@zachxbt) <a href="https://twitter.com/zachxbt/status/1478082010807742468?ref_src=twsrc%5Etfw">January 3, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<p><a href="https://coinmarketcap.com/currencies/myx-network/" target="_blank" rel="noreferrer noopener">MYX Network</a> and <a href="https://coinmarketcap.com/currencies/distx/" target="_blank" rel="noreferrer noopener">DistX</a>, both of which have made no gains since 2020, are among the dubious cryptocurrency tokens he’s promoted, according to ZachXBT. Armstrong once labeled a video on DistX “my most trusted coin,” but later went on to revise the title.</p>



<p>Separately, the YouTuber was recently described as an “untrained investment adviser” in a <a href="https://www.washingtonpost.com/business/2022/07/24/crypto-advice-bitboy-armstrong/" target="_blank" rel="noreferrer noopener">Washington Post report</a> that highlighted his bad-mouthing of bankrupt lender Celsius after initially encouraging investors to deposit their money with the firm. </p>



<p>He told The Post that he doesn’t personally own cryptocurrencies, and that the chief financial officer of BitBoy — a media enterprise with 70 employees — handles all crypto transactions for the firm in case of potential conflicts.</p>



<p>Armstrong’s lawyers from Krevolin &amp; Horst didn’t return Blockworks’ request for comment by press time. It isn’t clear who is representing Mengshoel.</p>



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<p><strong>Get the news in your inbox. Explore Blockworks newsletters:</strong></p>



<ul class="wp-block-list">
<li><a href="https://blockworks.co/newsletter/the-breakdown"><strong>The Breakdown</strong></a>: Decoding crypto and the markets. Daily.</li>



<li><a href="https://blockworks.co/newsletter/0xresearch"><strong>0xResearch</strong></a>: Alpha in your inbox. Think like an analyst. </li>
</ul>
