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22/08/24
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Jimmy Butler and BitBoy Settle $340K Binance Lawsuit Allegations
NBA player Jimmy Butler and cryptocurrency influencer Ben Armstrong, commonly referred to as “BitBoy,” have reached an agreement to pay a total of $340,000 to resolve a class-action lawsuit. The lawsuit alleges that they promoted Binance, a cryptocurrency exchange accused of selling unregistered securities.
On August 19, legal representatives for the plaintiffs filed a motion in a federal court in Miami seeking preliminary approval for the settlement. The lawsuit has been ongoing since March 2023. According to the settlement details, Butler agreed to pay $300,000 while firmly stating that he denies any wrongdoing. He holds the belief that, should the case progress to litigation, he would be cleared of all charges.
Armstrong has committed to a payment of $40,000 and also denies any liability, asserting that he possesses valid defenses against the allegations. Both parties opted for the settlement to avoid potentially significant legal expenses and protracted court proceedings.
The lawsuit alleges that Butler and Armstrong received compensation for promoting Binance, which purportedly sold cryptocurrencies classified as unregistered securities. The complaint also names Binance itself, along with its former CEO Changpeng Zhao, as defendants, along with BAM Trading, the U.S. affiliate of Binance, and Paxos Trust Company, which was included in a revised complaint filed in June 2023.
In addition to Butler and Armstrong’s involvement, the plaintiffs maintain that all promoters of unregistered securities linked to Binance should be held accountable. The potential settlement class may encompass millions of users from Binance.US and Binance.com who utilized various products from the exchange or purchased certain cryptocurrencies, including BNB, Binance USD, and others.
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