SocialFi Founder Faces Legal Challenges as Token Collapses

The New York Criminal Court records reveal that 26-year-old Benjamin Pasternak, founder of the SocialFi platform Believe, has been detained on accusations of “second-degree strangulation” and “third-degree assault.” Pasternak was reportedly taken into custody following an incident on March 31, although these charges have been strongly contested by him.

Legal Concerns Intensify

Pasternak is steadfast in his defense against the charges, planning to contest them in court. Upcoming legal proceedings are set, with the next court appearance scheduled for June 11, as per the New York State Unified Court System.

What is Believe’s Role?

Believe, a platform operating on the Solana blockchain, allows users to engage in token transactions linked to content creators and influencers. Through interactions with posts on Believe’s official account, users can effortlessly create their tokens, thus integrating deeply with the ecosystem of crypto and social media.

Recently, Believe has attracted significant polarizing attention in the cryptocurrency sector. However, ongoing controversies and emerging claims have markedly dented user confidence and trust in the platform.

Allegedly, a class action lawsuit filed at the end of March presents accusations that Pasternak and his associates knowingly caused harm to the platform’s users. It is claimed that a forced token transition last October left many investors at a disadvantage.

Allegations include issuance of 333 million new tokens for insiders, diluting holdings by a third, as well as causing loss of assets for users who did not engage in the token swap.

“Pasternak’s unnotified disappearance, post-transition, left investors stranded and uninformed,” the complaint elaborates.

• Investors report aggregate losses in the range of hundreds of millions.
• Claims suggest misuse of strategic patterns for personal gain by the team.
• Earlier incidents involve hype creation, user attraction, fee collection, and abrupt platform closure causing plummeting token values.

The significant decline of Believe’s native token reflects the turmoil, having witnessed a 99.7% devaluation since its peak in May 2025. Trading at $0.0007009, the value plunged further by 24% over the last day.

While debates continue about the direct connection between Pasternak’s arrest and financial allegations, Believe has yet to issue a formal response addressing these unfolding events.