A new class action lawsuit has placed Believe founder Ben Pasternak at the centre of serious allegations, accusing him of extracting tens of millions in fees through a pattern of token launches and migrations that allegedly left investors at a loss.
Filed in the U.S. District Court for the Southern District of New York, the complaint by plaintiffs Joshua Lee and Pierre Montmeas claims Pasternak, alongside entities including B24, Inc. and the Believe Foundation, orchestrated multiple token transitions designed to generate revenue while eroding holder value.
Court documents estimate that the Believe ecosystem processed close to $6 billion in trading volume, yielding approximately $54 million in fees tied to tokens such as PASTERNAK, LAUNCHCOIN, and BELIEVE.
Ben Pasternak just unfollowed the project he made over $60 million dollars on 😂😭
You can’t make this up pic.twitter.com/QuvKB8aGrv
— bolivian (@_bolivian) April 29, 2026
Migration mechanics under scrutiny
At the core of the dispute is an October 2025 token migration from LAUNCHCOIN to BELIEVE. According to the filing, the process expanded the token supply from 1 billion to over 1.33 billion, effectively diluting existing investors by roughly one-third.
The lawsuit further claims that participants were given a strict two-week window to convert their holdings, after which any unconverted tokens were permanently burned. Plaintiffs argue that this structure disproportionately disadvantaged slower or less-informed investors.
Additional allegations point to insider-linked wallets receiving newly minted tokens, while a portion of the foundation’s allocation, estimated at around 40 million tokens, was unlocked immediately. The complaint characterizes the broader strategy as a repeated cycle of hype-driven launches followed by value decline.
Legal pressure mounts on multiple fronts
The civil case unfolds alongside a separate criminal matter involving Pasternak. Records from the New York State Unified Court System show he was arrested on April 22 over allegations tied to a March 31 incident at the Baccarat Hotel.
He faces charges including second-degree strangulation and third-degree assault involving YouTuber Evelyn Ha. Pasternak has pleaded not guilty and is expected in court on June 11, with his legal team maintaining he acted in self-defense.
Meanwhile, the civil complaint also accuses him of failing to deliver on at least 12 publicly stated buyback promises, despite continuing to collect transaction fees. Plaintiffs are now seeking to freeze associated on-chain assets and recover what they describe as improperly obtained funds.
In related news, a Texas federal court dismissed a lawsuit filed by Michael Lewellen, a crypto developer seeking legal clarity for his donation-focused software, Pharos.
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