BITBOY CRYPTO SUES FELLOW YOUTUBER ATOZY FOR DEFAMATION OVER SHILLING CLAIMS

Last updated: June 19, 2025, 19:25 | Written by: Elizabeth Rossiello

The world of cryptocurrency is no stranger to drama, but recent events have taken the feud between content creators to a new level. Erling Mengshoel Jr, better known by his YouTube channel name Atozy, came across a now-deleted video on the Bitboy channel promoting a project called Pamp network token in 2025. The project ended on a sour note as investors were left empty-handed after a reported 'rug-pull' from the founders.Ben Armstrong, widely known as BitBoy Crypto on YouTube, initiated a legal battle against Erling Mengshoel Jr., also known as Atozy, another prominent figure in the crypto YouTube scene.The core of the dispute revolves around allegations of defamation stemming from a video Atozy posted last November, accusing Armstrong of promoting scam crypto projects, or ""shilling,"" to his audience. Meta Cancels Next-Gen Headset Amidst Changing Market Landscape.This lawsuit has sent ripples throughout the crypto community, sparking heated debates about accountability, freedom of speech, and the responsibilities of influencers within the digital asset space.The situation has quickly escalated, drawing significant public attention and raising questions about the future of crypto-related content creation and the legal ramifications of opinions expressed online.What began as a content dispute has now morphed into a high-stakes legal showdown, with both reputations and substantial financial damages potentially on the line.This case highlights the growing tension between the booming crypto market and the unregulated nature of its online promotion.

The Lawsuit: Defamation and Shilling Allegations

The lawsuit, filed by Ben Armstrong against Erling Mengshoel Jr. (Atozy), centers on a video Atozy published titled ""This Youtuber Scams His Fans."" Armstrong alleges that this video contained defamatory statements that caused significant distress and damage to his business and reputation.Specifically, the accusations focus on Armstrong’s alleged promotion, or shilling, of crypto projects that turned out to be scams, leaving investors with substantial losses.

One particular project highlighted in the dispute is the Pamp network token, a venture that Atozy claims Armstrong promoted back in 2021.The project reportedly ended disastrously, with investors suffering from a ""rug-pull,"" where the founders allegedly disappeared with the funds, leaving token holders empty-handed. See full list on finbold.comAtozy’s video accused Armstrong of deliberately misleading his audience for personal gain, an accusation that Armstrong vehemently denies.

Armstrong’s legal team argues that Atozy's video constitutes defamation, as it contains false and damaging statements that have harmed his reputation and business. China s Ant Group to help Malaysia launch crypto-friendly 'super app' PANews Australia's markets regulator to prioritize shielding citizens from crypto harmThey claim that Armstrong has suffered emotional distress and financial losses as a direct result of the video's publication. BitBoy Crypto sues fellow YouTuber Atozy for defamation over shilling claims with a raft of claims, including defamation, The initiative has received over $20,000 in the 24 hours since itsThe lawsuit seeks to recover damages to compensate for these alleged losses.

Atozy's Defense and the Crypto Community's Reaction

Atozy, on the other hand, stands by the claims made in his video, arguing that he was simply providing a critical analysis of Armstrong’s content and warning viewers about potential risks associated with certain crypto projects.He asserts that his video was protected under the umbrella of free speech and that he had a responsibility to inform his audience about potential scams.

The crypto community has been sharply divided on the issue, with many expressing strong opinions on both sides.Some have voiced support for Armstrong, arguing that Atozy's video was indeed defamatory and that Armstrong has a right to defend his reputation. Cryptocurrency YouTuber Bitboy Crypto has filed a defamation lawsuit against another prominent content creator on the platform. Two prominent YouTube content creators are set to lock horns in a legal battle over a cryptocurrency video allegedly promoting a project that ended up being a scam.Others have sided with Atozy, claiming that his video was a legitimate critique of Armstrong's content and that holding influencers accountable for their endorsements is essential.

The debate has also raised broader questions about the role of influencers in the crypto space and their responsibility to disclose potential conflicts of interest. Ben Armstrong, known as BitBoy Crypto on YouTube, filed a defamation lawsuit against Erling Mengshoel, Jr, aka Atozy, for comments made in a video last November. Armstrong alleges he sustainedMany critics argue that influencers should be transparent about their financial relationships with crypto projects and that they should not promote projects they have not thoroughly vetted. More than the usual crypto YouTube drama. Bitboy_Crypto sues atozy for defamation, emotional distress after the fellow YouTuber alleges promotion of scam crypto projects. (Reporting via gazza_jenks)This case underscores the need for greater regulation and accountability within the crypto influencer industry.

BitBoy Crypto Drops the Lawsuit: An Unexpected Turn

In a surprising turn of events, Ben Armstrong announced that he would be dropping the defamation lawsuit against Atozy. BitBoy Crypto sues fellow YouTuber Atozy for defamation over shilling claims M xico Noticias NoticiasThis decision came after the suit garnered significant public attention and generated considerable controversy within the crypto community. One of the biggest crypto commentators on YouTube has filed a lawsuit against a fellow YouTuber for defamatory and damaging statements, seeking to recover damages. Ben Armstrong, who brands himself as BitBoy Crypto, says Erling Mengshoel Jr, a.k.a. Atozy, posted a video on YouTube entitled This Youtuber Scams His FansArmstrong stated that he had realized the suit had become a distraction and that he wanted to focus on his content and community.

""We are going to drop the lawsuit, 100%,"" Armstrong said during a livestream, acknowledging that the lawsuit had become a public spectacle.This unexpected development has been met with mixed reactions, with some praising Armstrong for his decision and others criticizing him for initiating the lawsuit in the first place.

While Armstrong has dropped the legal proceedings, the underlying issues surrounding the case remain unresolved.The debate about influencer accountability, transparency, and the potential for conflicts of interest in the crypto space continues to rage on.This case serves as a cautionary tale for both influencers and viewers, highlighting the importance of due diligence and critical thinking in the world of cryptocurrency.

Why Did BitBoy Crypto Initially Sue Atozy?

The primary reason Ben Armstrong, aka BitBoy Crypto, initiated the defamation lawsuit against Erling Mengshoel Jr., aka Atozy, was due to claims made in Atozy's YouTube video, ""This Youtuber Scams His Fans."" Armstrong contended that the video made false and damaging allegations, causing significant harm to his reputation and business. Cryptocurrency YouTuber Bitboy Crypto has filed a defamation lawsuit against another prominent content creator on the platform. Two prominent YouTube BitBoy Crypto sues fellow YouTuber Atozy for defamation over shilling claims - XBT.MarketSpecifically, Armstrong took issue with Atozy's assertions that he promotes cryptocurrency projects that are actually scams, leading to financial losses for his viewers.

Armstrong's legal team argued that these statements constituted defamation, defined as the act of communicating false statements that harm the reputation of another.To win a defamation case, the plaintiff (in this case, Armstrong) typically needs to prove the following elements:

Publication: The defamatory statement was communicated to a third party.
Identification: The statement was about the plaintiff.
Falsity: The statement was false.
Damages: The plaintiff suffered damages as a result of the statement.
Fault: The defendant was at fault in publishing the statement. Well-known crypto influencer Ben Armstrong, aka BitBoy Crypto, recently filed a lawsuit against fellow YouTuber Erling Mengshoel Jr, aka Atozy. While the former claims that Atozy s eight-month-old video titled This Youtuber Scams His Fans Bitboy Crypto caused him significant distress and damage to his business and reputationThe level of fault required depends on whether the plaintiff is a public figure or a private individual.

Armstrong believed that Atozy's video met these criteria, and that the allegations of promoting scam crypto projects were not only false but also damaging to his credibility as a crypto influencer.He sought to recover damages to compensate for the alleged financial losses and emotional distress caused by the video.

The Impact of the Lawsuit on the Crypto Community

The BitBoy Crypto vs.Atozy lawsuit had a significant impact on the crypto community, sparking widespread debate and raising important questions about the responsibilities of crypto influencers and the potential for defamation in the digital age. Cryptocurrency YouTuber Bitboy Crypto has filed a defamation lawsuit against another prominent content creator on the platform. Two prominent YouTube content creators are set to lock horns in a legal battle over a cryptocurrency video allegedly promoting a project that ended up being a scam. Bitboy Crypto, a YouTube channel founded by Ben Armstrong, produces a variety of content focused onHere are some of the key impacts:

Increased Scrutiny of Crypto Influencers: The lawsuit brought heightened scrutiny to the activities of crypto influencers and their relationships with crypto projects.Many viewers began to question the motives behind endorsements and promotions, demanding greater transparency and disclosure.
Debate about Freedom of Speech vs.Defamation: The case ignited a debate about the balance between freedom of speech and the potential for defamation. Ben Armstrong the YouTuber who goes by the name BitBoy Crypto recently sued fellow influencer Erling Atozy Mengshoel in a defamation lawsuit. He s now apologized that the suit caught public attention, and is dumping the case. We are going to drop the lawsuit, 100%, he said during his regular livestream on WednesdayWhile Atozy argued that his video was protected under free speech principles, Armstrong maintained that the video crossed the line into defamation by making false and damaging allegations.
Awareness of ""Shilling"" and Scam Projects: The lawsuit raised awareness about the practice of ""shilling,"" where influencers promote crypto projects without disclosing potential conflicts of interest.It also highlighted the risks associated with investing in unvetted or potentially fraudulent crypto projects.
Legal Ramifications of Online Content: The case underscored the legal ramifications of online content, particularly in the context of defamation.It served as a reminder that individuals can be held liable for false and damaging statements made online, even if those statements are opinions or criticisms.
Division within the Community: The lawsuit created a divide within the crypto community, with some siding with Armstrong and others siding with Atozy.This division reflected broader disagreements about the role of influencers, the ethics of crypto promotion, and the importance of accountability in the digital asset space.

The Role of Disclosure and Transparency

One of the key takeaways from the BitBoy Crypto vs.Atozy lawsuit is the importance of disclosure and transparency in the crypto influencer industry.Influencers have a responsibility to be upfront about their financial relationships with crypto projects and to avoid promoting projects that they have not thoroughly vetted.

Here are some practical steps that crypto influencers can take to ensure transparency and disclosure:

Disclose Financial Relationships: Clearly disclose any financial relationships with crypto projects that are being promoted, including sponsorships, affiliate links, and equity stakes.
Provide Unbiased Reviews: Offer unbiased reviews of crypto projects, highlighting both the potential benefits and the risks.Avoid making overly enthusiastic or misleading claims.
Conduct Due Diligence: Conduct thorough due diligence on crypto projects before promoting them, including researching the team, technology, and whitepaper.
Avoid Promoting ""Shitcoins"": Avoid promoting ""shitcoins"" or meme coins that have no real-world utility or value.
Be Transparent about Risks: Be transparent about the risks associated with investing in cryptocurrencies, including the potential for scams and rug-pulls.

By following these guidelines, crypto influencers can help to build trust with their audience and promote a more responsible and transparent crypto ecosystem.

What are the Legal Implications of ""Shilling"" Crypto Projects?

""Shilling"" crypto projects can have significant legal implications, particularly if the promoted project turns out to be a scam or causes financial harm to investors.While there isn't a specific law that directly prohibits ""shilling,"" several legal principles and regulations could apply, depending on the specific circumstances:

Securities Laws: If a crypto token is deemed to be a security under securities laws (such as the Securities Act of 1933 and the Securities Exchange Act of 1934 in the United States), promoting that token without proper registration or disclosure could be a violation of these laws.The Securities and Exchange Commission (SEC) has been actively investigating and prosecuting crypto projects that they believe are unregistered securities offerings.
Fraud and Misrepresentation: If an influencer makes false or misleading statements about a crypto project with the intent to deceive investors, they could be liable for fraud or misrepresentation.This could lead to civil lawsuits from investors who lost money as a result of the false statements.
Defamation: As seen in the BitBoy Crypto vs.Atozy case, individuals who make false and damaging statements about others can be sued for defamation.Conversely, if an influencer is accused of shilling a scam project, they could potentially sue those who make false and damaging statements about their involvement.
FTC Endorsement Guidelines: The Federal Trade Commission (FTC) has guidelines regarding endorsements and testimonials, which apply to influencers promoting products or services, including crypto projects.These guidelines require influencers to disclose any material connections to the brands or projects they are promoting, such as sponsorships or affiliate relationships.Failure to disclose these connections could be a violation of FTC regulations.
Anti-Touting Laws: Some jurisdictions have anti-touting laws that prohibit individuals from promoting securities without disclosing that they have been compensated for doing so.These laws could potentially apply to crypto projects if they are deemed to be securities.

It's important for both crypto influencers and viewers to be aware of these legal implications and to act responsibly when promoting or investing in crypto projects.Influencers should always disclose their financial relationships and conduct thorough due diligence, while viewers should be skeptical of overly enthusiastic endorsements and conduct their own research before investing.

The Future of Crypto Content Creation and Accountability

The BitBoy Crypto vs.Atozy lawsuit may have been dropped, but its impact on the crypto content creation landscape is likely to be long-lasting.The case has raised awareness about the importance of accountability, transparency, and due diligence in the crypto space, and it has sparked a broader conversation about the responsibilities of influencers.

Here are some potential future developments in the world of crypto content creation and accountability:

Increased Regulation: Governments and regulatory bodies may introduce new regulations to govern the activities of crypto influencers and to protect investors from scams and fraud.
Self-Regulation: The crypto industry may develop its own self-regulatory organizations to establish ethical guidelines and standards for content creation and promotion.
Enhanced Disclosure Requirements: Influencers may be required to provide more detailed disclosures about their financial relationships and potential conflicts of interest.
Improved Due Diligence: Viewers may become more discerning and conduct more thorough due diligence on crypto projects before investing.
Greater Legal Scrutiny: Influencers may face greater legal scrutiny for their endorsements and promotions, particularly if they are found to have made false or misleading statements.

Ultimately, the future of crypto content creation will depend on the actions of both influencers and viewers.By embracing transparency, accountability, and due diligence, the crypto community can create a more responsible and sustainable ecosystem for digital assets.

Key Takeaways and Actionable Advice

The BitBoy Crypto vs.Atozy saga provides valuable lessons for both crypto content creators and viewers.Here are some key takeaways and actionable advice:

For Crypto Influencers:
- Prioritize transparency and disclose all financial relationships.
- Conduct thorough due diligence on projects before promoting them.
- Avoid promoting projects you don't fully understand or trust.
- Be mindful of the legal implications of your content.
For Crypto Viewers:
- Be skeptical of overly enthusiastic endorsements.
- Conduct your own research before investing in any crypto project.
- Diversify your investments to mitigate risk.
- Be aware of the potential for scams and fraud.

By following these guidelines, both creators and viewers can navigate the crypto space more safely and responsibly.Remember that the crypto market is highly volatile and that investments should be made with careful consideration and a thorough understanding of the risks involved.

Conclusion: A Call for Responsible Crypto Content

The controversy surrounding BitBoy Crypto's lawsuit against Atozy serves as a stark reminder of the importance of responsible content creation within the volatile cryptocurrency landscape.While the legal battle has concluded with the suit being dropped, the core issues surrounding transparency, accountability, and the potential for defamation remain crucial topics for the crypto community.It’s essential for influencers to prioritize ethical practices, including full disclosure of potential conflicts of interest and rigorous due diligence on projects they endorse.Simultaneously, viewers must adopt a critical mindset, engaging in thorough research and exercising caution when evaluating investment opportunities.By fostering a culture of informed decision-making and responsible promotion, the crypto community can mitigate risks and build a more sustainable and trustworthy ecosystem for digital assets.The future of crypto depends on the collective effort to promote integrity and protect investors from potentially harmful schemes.Let this be a lesson learned to strive for a higher standard of conduct within the crypto space.