Court Orders BitBoy to Pay $2.8M in a Defamation Ruling, Atozy Celebrates

In Brief

• BitBoy ordered to pay $2.8M in defamation case.
• Court issued default ruling after he ignored proceedings.
• Marks another blow in his ongoing legal downfall.

Ben Armstrong, widely known as BitBoy Crypto, has been ordered to pay $2.8 million in a defamation case involving Shark Tank investor Kevin O’Leary. The ruling follows months of legal silence from Armstrong, who failed to respond to court filings or appear at key hearings. The decision marks the latest chapter in a long-running collapse that has reshaped one of the cryptocurrency market’s most controversial influencer stories.

Defamation Case Ends With Default Judgment

The lawsuit stems from a series of posts Armstrong made in 2025 accusing Kevin O’Leary of covering up a fatal boating incident.

According to court records, shared by YouTuber Erling Mengshoel Jr., a.k.a. Atozy (himself at the receiving end of BitBoy’s failed defamation lawsuit), O’Leary was not charged in the accident and was not operating the vessel at the time.

Armstrong reportedly escalated the claims about the Shark Tank star online, even publishing O’Leary’s personal phone number and urging followers to contact him. O’Leary testified that the harassment forced major changes to his security setup, including new travel routines and added protection costs.

After repeated missed deadlines and no formal defense filed, the court entered a default judgment against Armstrong. A federal judge finalized the ruling in February 2026. The breakdown includes emotional distress damages, reputational harm, and punitive penalties, bringing the total to $2.8 million.

Legal Troubles Stack On Top Of Personal Collapse

The verdict lands amid a broader decline that has followed Armstrong since 2023. Once among the largest crypto industry creators on YouTube, the BitBoy brand dropped him after internal disputes and erratic public incidents. His online presence later faded as legal battles and arrests began stacking up across multiple jurisdictions.

Reports tied to prior cases include harassment charges, investigations into past token promotions, and earlier civil disputes involving critics and former partners. Armstrong has largely disappeared from social platforms since late 2025, fueling speculation about his legal and financial position.

As Atozy noted, the defamation ruling doesn’t close all open cases, but it cements one of the most concrete financial consequences tied to the influencer’s downfall.

For many observers, the decision underscores how online behavior can translate into real-world legal exposure, especially as regulators and courts take a harder look at crypto personalities who built massive audiences during the last cycle.