BELIEVE Token Loses 99% as Founder Faces Fraud and Assault Charges

From Launchpad Darling to Legal Quagmire

The BELIEVE token — a Solana-based social token launchpad formerly known as $LAUNCHCOIN and $PASTERNAK — has become one of 2026's most high-profile crypto collapses, compounded by serious legal troubles surrounding its founder. Ben Pasternak, a 26-year-old Australian entrepreneur who once appeared on Forbes' 30 Under 30 list, now faces a federal class action lawsuit over alleged investor fraud and, separately, criminal charges for second-degree strangulation and assault filed in New York Criminal Court, with a court appearance scheduled for June 11.

How the Platform Rose — and Fell

Launched in January 2025 under the Clout.me brand, the platform allowed anyone to create and trade crypto tokens through a mobile app or web browser with no technical knowledge required. It gained traction rapidly, processing over $6 billion in cumulative trading volume and generating an estimated $54 million in platform fees. The native token reached a peak market capitalization of approximately $370 million before its subsequent collapse.

Key events in the timeline include:

✦ January 24, 2025: Pasternak launches the $PASTERNAK token, publicly stating on X that he holds "0 ownership in the token" — a claim central to the fraud allegations.

✦ May–October 2025: Pasternak repeatedly promotes a "flywheel" buyback mechanism to support the token price; investors allege these buybacks never materialized.

✦ October 15, 2025: A forced migration from $LAUNCHCOIN to $BELIEVE is executed, introducing a 33.3% supply inflation with no compensation provided to existing holders — an event critics described as an undisclosed dilution event.

✦ January 2026: A rebranded "Believe v2" attempts to pivot toward an "emotion market" for betting on public figures' popularity, but fails to regain market attention.

✦ March 23, 2026: Law firm Burwick Law files a federal class action in the U.S. District Court for the Southern District of New York on behalf of plaintiffs Joshua Lee (California) and Pierre Montmeas (France), representing all investors who held $PASTERNAK, $LAUNCHCOIN, or $BELIEVE tokens from January 2025 onward.

What the Lawsuit Alleges

The complaint names Pasternak, B24 Inc. (operating as Believe, formerly Clout), and the Believe Foundation Inc. as defendants. It asserts violations of New York General Business Law Sections 349 and 350, California's Unfair Competition Law and False Advertising Law, as well as common law claims for negligent misrepresentation and unjust enrichment. The suit seeks damages, restitution, and equitable relief on behalf of a nationwide class. At the core of the allegations are four claims: - Pasternak falsely claimed zero personal ownership of the token while allegedly controlling insider holdings. - The promised "flywheel" buyback mechanism was publicly promoted but never executed. - The forced $LAUNCHCOIN-to-$BELIEVE migration constituted an undisclosed dilution event, eroding holder value by approximately one-third. - The overall scheme resulted in the evaporation of hundreds of millions of dollars in investor value.

Market Status and Silence

As of April 23, 2026, the BELIEVE token is trading at approximately $0.00075–$0.00088, representing a decline of over 99% from its May 2025 peak of $0.3569. The project's market capitalization has fallen from roughly $370 million at its height to approximately $1.2 million. Both Pasternak personally and the platform's official social media channels have gone silent since the lawsuit was filed, with the last post from the project's account announcing a new token listing for Nikita Bier. The case remains in its early stages in the Southern District of New York.

Published by Coinplurk.com