- Pasternak arrested in New York faces serious assault charges
- Investor lawsuit alleges token manipulation causing massive financial losses
- Believe token crashes 99.7% amid growing legal and market pressure
Legal pressure surrounding Believe’s leadership intensified after authorities confirmed the arrest of Benjamin Pasternak in New York. The 26-year-old founder now faces criminal charges linked to an alleged incident reported on March 31. Consequently, the development has drawn attention to both his personal legal situation and the broader state of the platform he leads.
According to records from the New York court system, Benjamin Pasternak faces one count of second-degree strangulation, while prosecutors also filed two counts of third-degree assault with intent to cause physical injury. He has pleaded not guilty to all charges, and the court has scheduled his next appearance for June 11 as proceedings move forward.
Besides the criminal allegations, Believe continues to operate as a SocialFi application built on Solana, allowing users to trade tokens connected to creators and influencers. Moreover, it enables token launches through simple interactions on X, recent events have raised concerns about how the platform manages both governance and user trust.
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Investor Lawsuit Raises Questions Over Token Practices
At the same time, Pasternak faces a class-action lawsuit tied to Believe’s token ecosystem. Filed on March 23, the complaint accuses him and his companies of misleading investors. Plaintiffs claim that the project forced a migration from Launchcoin to a new token called Believe.
According to the lawsuit, this transition created 333 million additional tokens for insiders. Consequently, existing investors experienced a significant 33% dilution of their holdings. Furthermore, users who failed to migrate reportedly lost their tokens entirely, which has intensified concerns about fairness within the system.
Moreover, the complaint outlines a repeated pattern across multiple token launches. It alleges that early excitement attracted users before token values declined. Plaintiffs argue that insiders benefited through transaction fees and sell-offs during these cycles. This claim has contributed to broader criticism of token launch models tied to influencer platforms.
Token Collapse Reflects Market Impact on Investors
Market performance reflects ongoing controversy, as the platform’s native token has fallen by 99.7% since its May 2025 peak, according to Coingecko data. Additionally, it dropped by 24% over the past 24 hours, highlighting the scale of losses faced by participants.
Authorities have not confirmed any connection between the criminal case and the civil lawsuit. However, the timing of both developments has increased scrutiny around Believe and its leadership. Pasternak’s arrest has added new complexity to an already challenging period for Believe. While the criminal case progresses in court, the investor lawsuit continues to examine alleged financial harm.
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