Bitboy Crypto: How Did He Lose A $40 Million Fortune?

The name Ben Armstrong may not ring a bell for most, but his online persona ‘Bitboy Crypto’ is far more recognizable in certain circles. As one of the most popular and controversial figures within the cryptocurrency social media space, Bitboy commanded an enormous audience and helped drive the hype around digital assets during the recent bull market mania.

However, behind the brash persona and flashy Lamborghinis, there was a more complex story of personal demons, damaged relationships, and an empire built on shaky foundations. Bitboy’s dramatic fall from grace in 2022/2023 serves as a cautionary tale on the volatile nature of fame, wealth, and influence in the ever-evolving crypto ecosystem.

This article unravels the many twists and turns behind Bitboy’s journey to the top – and his even more stunning descent.

Bitboy Crypto: Origins And Early History

Long before becoming an eccentric crypto evangelist flaunting his wealth to hordes of YouTube fans, Ben Armstrong lived a remarkably different life. Born October 27, 1982, and based out of Atlanta, Georgia, Armstrong has described his younger years as being filled with tumult. In his 20s, he struggled with drug addiction issues for which he underwent rehab. His personal life only stabilized after he found religion and purpose, enrolling in a Christian college focused on ministry leadership. It was here that he would meet his future wife, Bethany, initially in her capacity as an admissions counselor. 

After graduating in 2012, Armstrong dabbled in various small businesses and jobs, ranging from graphic design agencies he attempted to found to running a car wash. Most of his ventures never took off. It was only when he discovered and started actively trading cryptocurrencies around 2016/2017 that Armstrong finally found his niche. What began as a hobby of making YouTube videos sharing crypto trading tips gradually morphed into something far bigger as digital assets exploded in popularity globally.

As fate would have it, a chance encounter at a conference with an ambitious entrepreneur named Timothy ‘TJ’ Shedd set the stage for his rise. The two men immediately bonded over their shared cryptocurrency and media production interests. Though from starkly different backgrounds – Shedd was a specialist in TV production and IPTV services – they decided to combine forces to launch their crypto YouTube channel ‘Bitboy Crypto’ in 2018. 

The early videos were quite amateurish in production quality, simply featuring Armstrong in front of a webcam discussing the latest crypto news and his market opinions. However, the content resonated with its target demographic and slowly gained traction. Behind the scenes, Shedd handled turning their passion project into an actual business. He incorporated the parent entity BJ Investment Holdings and subsidiary firms like Hit Network to house the Bitboy media operations. What started as a lean team of 3 grew into a full-fledged production house with multiple shows and over a dozen staff by 2021. 

Bitboy Crypto’s Growth During The Bull Run

The years 2020 and 2021 marked the pinnacle of success for Bitboy Crypto, thanks largely to the euphoria phase of the recent crypto market cycle. As retail investment poured into digital assets and coins like Bitcoin and Ethereum shot up in value, blockchain technology and Web3 became one of the hottest trends globally. Influencer personalities like Armstrong became the conduits for all the hype and hope around this brave new world. 

Bitboy cashed in on this momentum in several ways. His YouTube following grew exponentially to over 1.5 million as amateur traders desperately sought insights for the next hot crypto pick. With his flashy designer outfits and fast cars, Armstrong epitomized the nouveau riche crypto bro stereotype. He expanded beyond YouTube with a website, online groups, in-person meetups and seminars, a merchandise store, and more – converting his audience into a tribe of loyal followers. Brand partnerships came flooding in too, with crypto firms and trading platforms paying millions for promotion deals and banner placements.

The profits were staggering at Bitboy’s peak. Though exact financials remain private as a privately held entity, estimates suggest annual revenues crossing $50 million plus at the height of last year’s bull frenzy. Armstrong himself claimed a personal net worth touching close to $40 million thanks to timely investments in tokens like Solana which skyrocketed. With media outlets clamoring for interviews, sold-out appearances at conferences like Bitcoin 2021 in Miami, and celebrities following him on Twitter, he had well and truly achieved crypto stardom. 

Cracks Beneath The Surface

Unfortunately, the enormous success also carried a dark side. As an organization scaled rapidly without proper controls, problems began brewing under the surface. And the newly minted crypto-rich CEO slowly transformed into a different person under the strain.

Reports of workplace misconduct first surfaced in late 2021 but initially went unaddressed. Employees accused Armstrong of verbal abuse, physical intimidation, and harassment – using homophobic slurs and even throwing objects at people during angry outbursts. The apparent trigger was almost always professional disagreements about video ideas or creative direction. But some staff also pointed towards Armstrong’s issues as an exacerbating factor.

Though kept carefully hidden from his followers, Armstrong was said to be battling mental health conditions and addiction disorders for years despite his public claims of sobriety. Former Bitboy team members have alleged he was abusing substances like marijuana, alcohol, and steroids during work hours or shooting periods. The usage sparked violent mood swings and emotional instability that translated into the mistreatment of his crew. 

Nor was trouble limited to just the workplace culture. Long before his wife Bethany filed for divorce in 2023, Armstrong is reported to have had several extramarital affairs that led her to separate temporarily multiple times. This included a sexual relationship with emerging social media influencer Cassandra Wolfe, known online as Her Highness Duchess of Crypto (@DuchessofDeFi on Twitter). Wolfe was initially hired as a marketing contractor but soon took on a more ambiguous role.

As Armstrong’s behavior grew more brazen, employees sounded warning bells to Bitboy co-founder TJ Shedd about his partner’s volatility. But for the longest time, Shedd chose to ignore or enable the misconduct rather than address it. Speculation was rife though that he feared rocking the boat when business was booming. For Armstrong however, the lack of accountability fueled the belief that his actions had no consequences. In his mind, he was the golden goose that laid the golden eggs. This couldn’t be farther from reality as the facade soon came crashing down.

A Coup And A Fall From Grace 

Trouble had been brewing for months before Bitboy Crypto imploded. By mid-2022, the broader crypto market had already nosedived from all-time highs. But just as prices went into free fall, so did Armstrong’s personal life and relationships. Affairs, lawsuits, unethical business decisions – the revelations came thick and fast. So when former loyalists like Shedd finally took action to remove their former partner, Armstrong was both shocked and outraged. 

In August 2022, Shedd worked with other shareholders to formally terminate Armstrong from HIT Network and strip his majority control. The official statement cited misconduct, abuse, and financial mismanagement as grounds for the unceremonious ouster. It also announced Hit Network would no longer be affiliated to Armstrong or produce Bitboy content. The very brand that Armstrong spent years cultivating was suddenly beyond his reach.

The bold power move sparked outrage and confusion among Bitboy’s extensive follower base. But Shedd soon took to social media alleging Ben Armstrong was no longer the person he first partnered with. Substance abuse issues and personal problems led to violent behavior including physical attacks on staff, missing funds from company accounts, and the peddling of unethical crypto projects for profit, he claimed. Other former team members also aired similar grievances.

A heated back-and-forth soon ensued on Twitter and YouTube. Armstrong called his ouster an illegal coup and lambasted Shedd as the real villain pulling strings. Though no longer CEO or Creative Head, he believed shareholders conspired to steal his company while he was ‘on vacation’. A dozen legal cases later, the former partners turned bitter foes continue embroiled in messy disputes spanning theft, fraud, extortion, and more. The cases reveal shocking developments like employees planning to discreetly consult divorce attorneys for Armstrong’s wife to find buried treasures!

Bitboy Crypto’s Downward Spiral 

While Armstrong nurses conspiracy theories of being wronged, public opinion about Bitboy has taken a nosedive since mid-2022. The scandals touched everything from professional credibility to personal integrity.

Despite boasts of stellar trading profits, documents showed Armstrong lost almost 85% of portfolio value as tokens like SOL and ADA crashed. Mentions of a Coca-Cola partnership were refuted as false. Promotions for certain crypto projects without proper disclosures led to COPPA violations. Rumors have even brewed of an SEC investigation following investor losses from Bitboy tips.

Worse still, rehab center sponsors cut ties once drug abuse became public. The Lamborghini often flaunted as proof of success turned out to be registered under Bitboy Holdings, not Armstrong himself. Hit Network staff aired dirt on shady tax practices and corporate black money laundering overseas. Even diehard supporters felt cheated after Armstrong allegedly dumped $1 million worth of personal BEN tokens marketed to them.

The wave of revelations turned Bitboy Crypto from a credibility disaster to the subject of memes almost overnight. Forced to start over with a new brand as just Ben Armstrong, the attempted comeback has struggled to gain traction. A core viewer base orbits still in the hope of rediscovering their guru’s golden touch. But with legal fees mounting, divorce finalizing, reputation in tatters and his former kingdom now controlled by enemies, Armstrong cuts a tragic figure rather than the larger-than-life persona he portrayed. 

The Bitboy Saga By 2024: Lawsuits And Lambos

If the crazy crypto year of 2022 ended badly for Armstrong, 2023 only continued his annihilation. Allegations, lawsuits, and public embarrassments kept piling on week after week, dominating crypto media coverage.

Barely days into January, Armstrong had to answer uncomfortable questions about promoting a gambling platform named Stake. As emerging details showed links between Stake owners and illegal pornography sites, Armstrong backpedaled quickly. He deactivated Twitter to avoid backlash over endorsing potential pornography profits indirectly. 

February brought the first hammer blow via a public notice from Armstrong’s estranged wife Bethany. Their ongoing divorce now named Cassandra Wolfe as co-respondent in marriage infidelity. Wolfe’s sexual affair with Armstrong during his Bitboy Crypto days was thus confirmed as grounds for Bethany’s petition. The notice also alleged Ben transferred assets illegally to hide money that was part of a shared estate.

The very same month, former fans and investors sued Armstrong over misleading crypto project promotions done for hidden profits. As Bitboy holders suffered heavy losses on tokens he pumped, he now faced legal consequences. Georgia police also confirmed registering cases filed by three former employees accusing of sexual assault by Armstrong during his reign as CEO.

March unveiled further secrets into the dark side of Bitboy’s success. As ex-partner TJ Shedd dug deeper, he discovered undisclosed ties between Armstrong and crypto crime rings overseas. Bitboy allegedly operated secret data centers in Thailand linked to frauds involving child pornography websites. The FBI began investigating these connections and shadow corporations tied to the shady dealings.  

The double whammy of professional deceit and personal betrayal reached its apogee in the Lamborghini legal battle between Armstrong and the former fan-turned-foe Carlos Diaz. Armstrong somehow transferred ownership rights of his precious sports car to Diaz in 2022 but later claimed blackmail and coercion.

Yet examinations revealed Armstrong did not fully own the vehicle under his name even at the peak of his riches. The judge ruled against Armstrong’s petition alleging vehicle theft, cementing the embarrassing realization that his prized possessions were part of an elaborate mirage. 

So is Bitboy Cripto in Prison now?

No. Bitboy Crypto was arrested and released on bail. However, as of 2024, he is facing an avalanche of lawsuits, having exhausted his fortune in legal defenses.

Staff horror stories meant interest in Bitboy Holdings evaporated at home, sending Armstrong desperately pitching for fresh money overseas. But with Thai police issuing notices for Armstrong in one of their largest cybercrime probes, international investors too balked at fear of running afoul of money laundering or racketeering laws. 

By mid-February, Ben Armstrong was effectively trying to rebuild not from the ground up but below it. The few remaining fans stuck around to witness the last convulsions of a dying brand once slated to conquer Web 3 itself. Legal costs forced the selling of personal possessions including the Atlanta home where his estranged wife Bethany is still fighting for her share.

Armstrong relocated to temporary addresses between Georgia and Los Angeles, his new girlfriend Cassandra Wolfe refusing to house him permanently lest her credit score tank with his appending bankruptcy. Cynical social media commentary hinted at a quickie marriage with Wolfe aimed at protecting future earnings from Bethany Armstrong’s alimony demands. But with talked-up ventures like ‘Influencer Fight Club also failing to attract significant commercial sponsors or fee hikes, Armstrong’s options look increasingly grim. 

For all his braggadocio about trading genius, the Bitboy story is at heart one of trading a once-loving family for fleeting fame and now trading freedom for felony counts built on fantasy instead of fundamentals. The legal proceedings and divorce details trickling out may well be just the trailer; the actual movie around the rise and fall of Ben Armstrong still has unfinished business and unresolved mysteries to play out in 2024.