Crypto YouTuber ‘BitBoy’ Drops Defamation Suit After Public Outcry

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 Wednesday. “I’m sorry this became public.”

Armstrong wanted the matter to be private, disclosing that a previous confidential lawsuit was settled to his preference. “I’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. 

The YouTuber then expressed he hadn’t anticipated the public would find out about the lawsuit, as his “name is now so big.” If he did, he wouldn’t have filed it, he said (all lawsuits are public record).

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His lawsuit filed August 12 was based on a November 2021 video, 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.

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.

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

This isn’t the first time Armstrong planned unsuccessful legal action. After Celsius’ bankruptcy in June, he intended to launch 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.

Armstrong’s lawyers from Krevolin & Horst didn’t return Blockworks’ request for comment by press time.

Atozy thanks crypto community for rallying defense against BitBoy

Atozy uploaded a video 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’s something worth covering,” he said.

He intended to fight the case. But because he didn’t have the money for it, he linked a GoFundMe page to help defend himself against Armstrong’s “frivolous lawsuit.” 

As of Thursday, Atozy had received 610 donations worth $53,407 through the campaign. Additionally, seasoned crypto podcaster Cobie donated USDC worth $100,000.

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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. 

“Thank you guys for saving me,” Atozy said.

Still, Atozy appears skeptical, tweeting late Wednesday: “If [Armstrong] has really directed his lawyer to dismiss the lawsuit against me he should prove that it’s happened by posting a copy of the dismissal WITH PREJUDICE of all claims against me.”

“I’m told by my lawyer that if it is not with prejudice he can refile at any time,” he said.

Updated with additional tweets from Atozy.

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