A partner at Loevy & Loevy firm, Mike Kanovitz, has threatened to sue the founder of the PSYOP project, who goes by the handle “Ben_eth” , if he doesn’t refund presale purchasers of their hard-earned ethereum (ETH).
Refund presale investors in full
In a letter shared on May 19 and minted as a non-fungible token (NFT) on Ethereum, a smart contracting platform, the lawyer notes that the founder intentionally misled investors and failed to honor promises regarding the project.
Kanovitz stated clearly:
“A refund is the stand-up thing to do. You’ve made promises and failed to live up to them. Anyone who has ever been in business knows that if you f_ck up on delivering what you promised, the customer gets a refund.”
The warning is an alert of the potential legal consequences that the founder would face, including wire fraud and other serious charges.
The letter urges the PSYOP creator to refund ethereum (ETH) received from users adding that the matter will be over and that “the firm and their victims will go their ways”.
However, he warned Ben.eth and PSYOP that if they continue messing up thousands of people, the law firm will sue them and seek justice for the victims affected. Currently, users who participate in the PSYOP presale receive fewer tokens from the airdrop, a reason some claim Ben.eth is scamming presale investors.
In response to the legal threat, Ben_eth has binned the letter and its threat, terming it as unprofessional, and warned that it could have an outcome for the law firm with the bar association.
He also mocked Kanovitz for sending the letter as an NFT, adding to the controversy surrounding the situation.
Concerns about the PSYOP project, a rug-pull in waiting?
PSYOP is a meme coin project launched on Ethereum. Launched in mid-May 2023, the project rode on the meme wave following the success of pepe coin (PEPE) and milady (LADYS).
The project has since raised over $7 million in ETH. However, there is controversy about the design of the underlying smart contract and fears that Ben.eth could, after all, plan to rug-pull investors. Analysts reveal that a function in PSYOP smart contract allows the minter to transfer all coins, including those from investors, to an external wallet.