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‘Bitboy’ drops a lawsuit against fellow YouTuber

By Daniela Ešnerová

11:23, 25 August 2022

Erling Mengshoel Jr. aka Atozy
Crypto community rallied to support Atozy’s defense against the suit. – Photo: GoFundMe

YouTuber Ben Armstrong, also known as BitBoy, has said he is going to drop the lawsuit against a fellow YouTuber, Erling Mengshoel Jr., who goes by Atozy.

Armstrong's suit against Mengshoel, filed on 12 August, 2022, related to Atozy's video from Novemver 2021 titled This YouTuber scams his fans… Bitboy Crypto”. There, Mengshoel alleged that Armstrong promoted dubious crypto projects for his own profit. 

Armstrong sued for defamation and emotional distress and sought $75,000 in compensation.

Since Mengshoel revealed he was being sued on  Twitter on Tuesday, many prominent figures rallied to support his case.

A crypto podcaster and trader, Jordan Fish, known as Cobie, donated Mengshoel $100,000 for his defense. Moreover, in two days, Mengshoel's fundraiser, 'Defending myself from Bitboy's frivolous lawsuit', raised over $53,000.

“I'm being sued by a crypto YouTuber known as Bitboy Crypto after calling him out for promoting a scam on his channel,” Mengshoel wrote.

According to media reports he has previously made “$30,000 for a single paid promotion” and now “feels responsible for the losses suffered by his followers.”

DOGE/USD

0.13 Price
-1.850% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

XRP/USD

0.59 Price
-2.080% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

ETH/USD

3,500.61 Price
-0.730% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

BTC/USD

66,950.35 Price
-0.690% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

“I stand by the allegations in the lawsuit, and don't understand why he filed it.

Ben Armstrong aka Bitboy.“I'm crowdfunding to help cover the insane costs of defending myself against this frivolous lawsuit. All funds raised will be used to pay legal fees. If there is anything left over I will donate them to various charities as I have no interest in profiting from my community,” he wrote.

Speaking during the livestream on Wednesday, Armstrong said: “We're going to drop the lawsuit, 100%, and I'm sorry this became public, I'm sorry that this has been misconstrued.”

Following the livestream, Mengshoel wrote: “If Bitboy 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.”

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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