A class action lawsuit has been filed in the U.S. District Court for the Southern District of New York against Believe founder Ben Pasternak, alleging systematic fee extraction through token migrations. According to the complaint filed by plaintiffs Joshua Lee and Pierre Montmeas, Pasternak and associated entities including B24, Inc. and the Believe Foundation carried out token launches and migrations that generated significant revenue while reducing investor holdings. Court filings indicate the Believe platform processed nearly $6 billion in trading volume and collected an estimated $54 million in fees across tokens such as $PASTERNAK, $LAUNCHCOIN, and $BELIEVE.
The central dispute centers on an October 2025 migration from $LAUNCHCOIN to $BELIEVE, where plaintiffs claim the total token supply increased from 1 billion to over 1.33 billion during the process. As reported in the complaint, this migration introduced roughly 333 million new tokens and diluted existing holders by approximately 33.3%. The migration required users to convert their holdings within a two-week window, after which any remaining tokens were permanently burned. Further allegations state that newly created tokens were allocated to insider-linked wallets, while the foundation's allocation of around 40 million tokens was unlocked immediately.
Separately, court records from the New York State Unified Court System show that Pasternak was arrested on April 22 on one count of second-degree strangulation and two counts of third-degree assault linked to a March 31 incident at the Baccarat Hotel in New York. According to authorities, the incident involved physical harm to a 27-year-old YouTube creator, Evelyn Ha, including neck injuries and bruising. Pasternak has pleaded not guilty and is scheduled to appear in court on June 11. Statements from Pasternak's legal team indicate he acted in self-defense, while a spokesperson close to him described the complainant as the aggressor during the altercation.
The civil complaint also alleges that Pasternak failed to fulfill at least 12 publicly stated buyback commitments and continued to collect transaction-related fees despite earlier statements indicating 'zero ownership' in the tokens. According to the filing, plaintiffs have requested the court to freeze on-chain assets tied to the project, including wallets and token reserves, while seeking recovery of what they describe as unlawfully obtained revenues. The complaint states that Pasternak 'ran the same play three times, under three different token names: generate excitement, bring consumers in, collect fees, and let the token collapse.'
