Believe Founder Benjamin Pasternak Arrested?—What It Means for the Project. Credit: Getty Images.
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Key Takeaways
Benjamin Pasternak, founder of Believe, was arrested in New York on second-degree strangulation and third-degree assault charges.
The violent felony and misdemeanor charges stem from a reported domestic incident, with potential penalties including up to seven years in prison.
Believe is a Solana-based SocialFi platform for easy token launches, whose token has crashed by over 99% amid a class action lawsuit alleging rug pulls.
Recent reports confirm that Benjamin Pasternak, the founder of the Believe project, was arrested in New York this week.
Public court records from the New York Criminal Court show the arrest occurred on Tuesday.
The incident in question reportedly took place on March 31, according to available documents.
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Users can launch tokens through social media posts without requiring technical expertise.
The platform uses a no-code interface connected to bonding curves that feed into automated liquidity pools.
The project, formerly known as Clout, rebranded to Believe in early 2025.
Its native token surged during its initial phase, reaching an all-time high of $0.3569 in May.
At its peak, the platform recorded over $6 billion in trading volume and generated $54 million in fees.
However, the token has since dropped more than 99%, now trading at approximately $0.00075.
A separate class action lawsuit alleges deceptive practices, including forced token migrations and misleading promotions. Investors claim losses in the hundreds of millions tied to successive token launches and supply changes.
The platform initially gained traction through hype-driven social token launches but has since faced a steep decline.
Growing Pressure on the Ecosystem
The arrest adds further uncertainty to an already strained ecosystem.
Confidence among users and investors may weaken further, potentially accelerating outflows and continued token declines.
Development could also slow without clear leadership direction.
Regulatory scrutiny on similar launchpad-style platforms may increase as a result.
The crypto sector has historically reacted strongly to founder-related controversies, particularly when combined with ongoing legal disputes.
Investors and users are now watching closely for any official response from the Believe team.
The situation highlights broader risks tied to founder-driven blockchain projects, where leadership issues can quickly translate into market and trust breakdowns.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
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