Benjamin Pasternak, the founder of SocialFi and token launchpad application Believe, has been apprehended on charges including second-degree strangulation and assault. This follows an incident reported on March 31. Pasternak has entered a plea of not guilty to the accusations and is scheduled for a court appearance on June 11. Concurrently, he is the subject of a civil class-action lawsuit wherein investors of Believe’s native token allege his involvement in a fraudulent scheme, commonly known as a “rug pull.”
Key Takeaways
- Believe Founder Benjamin Pasternak was arrested on Tuesday facing charges of strangulation and assault related to an incident on March 31.
- Pasternak has pleaded not guilty and is due in court on June 11.
- He is also a defendant in a civil class-action lawsuit alleging a rug pull scheme involving Believe’s native token.
Public records from the New York Criminal Court confirm the arrest of the 26-year-old Pasternak. The charges against him include one count of strangulation in the second degree and two counts of assault in the third degree, with the intent to cause physical injury. The court’s website indicates his plea of not guilty and the upcoming court date.
Believe, a platform operating on the Solana blockchain, facilitates the buying and trading of tokens associated with creators and influencers. It also offers functionality for users to launch their own cryptocurrencies directly on Solana, by interacting with posts from Believe’s official account on the X platform.
Legal Ramifications and Regulatory Scrutiny
The platform has recently drawn significant attention due to accusations from users and investors who claim Pasternak and his team orchestrated a rug pull. A class-action lawsuit, filed on March 23, asserts that deceptive actions by Pasternak and his associated companies led to substantial financial losses for investors, reportedly amounting to hundreds of millions of dollars.
The lawsuit’s allegations specify a forced migration from the original native token, Launchcoin, to a new token, Believe, which occurred in October of the previous year. This migration, it is claimed, resulted in the creation of 333 million new tokens for individuals described as “insiders,” thereby diluting existing holdings by approximately one-third. Tokens belonging to investors who did not participate in this migration were reportedly rendered void.
According to the legal filing, Pasternak allegedly ceased communication and disappeared following the compulsory token migration, offering no explanations or updates to the affected investors. The complaint states, “Pasternak ran the same play three times, under three different token names: generate excitement, bring consumers in, collect fees, and let the token collapse. Each time, he and his entities profited on every transaction, including the sell-offs that wiped out consumers.”
Data from Coingecko indicates a significant depreciation in the platform’s native token value, which has fallen by 99.7% from its peak in May 2025. It is currently trading at approximately $0.0007009, having experienced a 24% decline in the preceding 24 hours. It remains unclear if Pasternak’s recent arrest is directly linked to the ongoing civil litigation. The Block has sought comment from Believe regarding these developments.
Potential Precedent in Digital Asset Regulation
This situation raises critical questions regarding the oversight of decentralized finance (DeFi) platforms and the accountability of their founders, particularly in the context of token launches and investor protection. While specific regulatory frameworks for SocialFi and creator-centric tokens are still evolving globally, actions taken by law enforcement in cases of alleged fraud and assault can have significant implications. The legal proceedings against Pasternak, both criminal and civil, could contribute to the body of case law that informs future regulatory approaches and enforcement priorities. Authorities worldwide, including those in regions with comprehensive frameworks like the European Union’s Markets in Crypto-Assets (MiCA) regulation, are increasingly focused on consumer protection and market integrity within the digital asset space. The outcome of these legal battles may set a precedent for how similar allegations of fraud and misconduct involving digital assets are handled, potentially influencing compliance requirements for platforms operating within this sector and underscoring the personal liability of project leaders.
According to the portal: www.theblock.co