TL;DR
- Jimmy Butler and Ben Armstrong settle for $340,000 to resolve a class-action lawsuit over promoting Binance.
- Butler will pay $300,000, and Armstrong will contribute $40,000, but both maintain their innocence.
- The lawsuit is part of a broader case against Binance and its affiliates for selling unregistered securities.
NBA star Jimmy Butler and cryptocurrency influencer Ben Armstrong, known as “BitBoy,” have agreed to a $340,000 settlement to resolve a class-action lawsuit accusing them of promoting Binance, a cryptocurrency platform alleged to have been selling unregistered securities.
This settlement, presented for preliminary approval to a federal judge in Miami on August 19, 2024, marks the end of litigation that began in March 2023.
Under the settlement terms, Butler will pay $300,000, while Armstrong will contribute $40,000.
Despite the settlement, both maintain their innocence and argue that, had the case gone to trial, they would have been exonerated of all liability.
The case is part of a broader legal strategy aimed at holding Binance and its affiliates accountable, including its former CEO Changpeng Zhao and the U.S. arm of the company, BAM Trading.
Additionally, the lawsuit has been expanded to include Paxos Trust Company, the issuer of Binance’s BUSD, as a defendant in an amended complaint filed in June 2023.
Adam Moskowitz, the lead attorney for the class, has been vocal about holding promoters of these unregistered securities, including Butler and Armstrong, responsible.
According to Moskowitz, the legal team’s investigation revealed that Binance was involved in selling unregistered securities, and promoters of such assets should also be held accountable.
Binance has faced intense scrutiny, particularly regarding its promotion of assets classified as unregistered securities by U.S. regulators.
The resolution of this case adds another layer to the legal challenges facing Binance, further complicated by the incarceration of its former CEO.
The class-action lawsuit could potentially encompass millions of Binance users who engaged with the platform’s staking products or purchased various crypto assets through Binance.com and Binance.US, including BNB, Solana, Cardano, and Polygon.
The case resolution doesn’t end Binance broader legal issues
In fact, the outcome of this lawsuit could set an important precedent for how cryptocurrency promotion, especially by celebrities, is regulated and prosecuted in the future.
The attention on this case underscores the need for clearer and more precise regulation in the cryptocurrency space, where endorsements by public figures can have significant legal implications.
As the case progresses, it will be crucial to observe how future legal actions and regulations impact cryptocurrency promoters and the platforms involved.
The settlement with Butler and Armstrong may signal how authorities and regulators are addressing cryptocurrency promotion and the responsibilities of those involved.
This case highlights the importance of compliance in financial product promotion and how regulatory adherence can affect all participants in the digital asset market.
