An attorney from Loevy & Loevy, Mike Kanovitz, has made headlines by posting a legal threat on May 19 aimed at pressuring the creator of the controversial PSYOP memecoin to return funds to investors.
In a letter posted on Twitter, Kanovitz emphasized the importance of a refund, alleging that the creator, Ben_eth, deliberately misled token buyers, broke promises, and mishandled liquidity pools.
Kanovitz’s letter further suggested that Ben_eth’s actions could potentially amount to wire fraud, which could trigger racketeering charges. Despite the PSYOP sale raising $7 million, the attorney claimed that Ben_eth could face a hefty $21 million in damages if found guilty.
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
In response to the legal threat, Ben_eth dismissed the letter as unprofessional and warned that it could have repercussions for the law firm with the bar association. He also ridiculed Kanovitz for sending the letter as a non-fungible token on the Ethereum blockchain, adding to the controversy surrounding the situation.
While the legal grounding of the proposed lawsuit remains uncertain, the PSYOP project itself has faced significant criticism. On the same day as the legal threat, a media studio with the same name denounced the project, questioning its integrity and substance. Additionally, a phishing scheme attempting to imitate the token launch has further tarnished the project’s reputation.
As the situation unfolds, investors and observers are left wondering about the fate of the $PSYOP memecoin and the potential legal ramifications for its creator.
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