“Each and every promoter of these unregistered securities, including Miami Heat star Jimmy Butler, will be held responsible,” emphasized lead attorney Adam Moskowitz.
Miami Heat’s Jimmy Butler and crypto influencer Ben Armstrong, widely recognized as “BitBoy”, have agreed to a combined $340,000 settlement to resolve a class-action lawsuit accusing them of promoting Binance, which is alleged to have sold unregistered securities.
The settlement, which seeks to end legal proceedings that began in March 2023, was presented for preliminary approval to a Miami federal judge on August 19, 2024. According to the settlement details, Butler has agreed to pay $300,000, while Armstrong will contribute $40,000.
Both maintain their innocence, with Butler asserting that he “adamantly denies any and all wrongdoing” and is confident he would be “absolved of all liability” if the case proceeded to trial. Armstrong echoed similar sentiments, asserting that he has “valid defenses” against the claims.
Binance Faces Class Action Fallout
This case is part of a broader legal strategy targeting Binance and its affiliates, including its former CEO Changpeng Zhao and the American arm, BAM Trading. The lawsuit also extends to Paxos Trust Company, the issuer of Binance’s BUSD, which was included as a defendant in an amended complaint filed in June 2023.
The lead attorney for the class, Adam Moskowitz, has been vocal about the responsibility of high-profile promoters like Butler and Armstrong, stating that their year-long investigation revealed that Binance was selling unregistered securities.
“Each and every promoter of these unregistered securities, including Miami Heat star Jimmy Butler, will be held responsible,” Moskowitz emphasized.
Binance has been under intense scrutiny, particularly for its promotion of assets that have been classified as unregistered securities by US regulators. This case adds to the legal challenges Binance faces, further complicated by the incarceration of its former CEO Changpeng Zhao.
The class-action lawsuit could potentially include millions of Binance users who engaged with the platform’s staking products or purchased various crypto assets through Binance.com and Binance.US, including but not limited to BNB, Solana, Cardano, and Polygon.
Binance Case Spurs Crypto-Endorsement Scrutiny
The resolution of the case against Butler and Armstrong does not conclude the broader legal battles faced by Binance. The lawsuit’s outcome could set a precedent for how crypto promotion, especially by celebrities, is regulated and prosecuted moving forward.
Armstrong’s attorney, Darren Heitner, refused to provide additional comments beyond acknowledging that a resolution had been reached. As of now, Butler’s legal representatives have not responded to requests for comment.
This settlement marks a significant moment in the intersection of cryptocurrency, celebrity endorsements, and regulatory scrutiny, highlighting the legal risks that can arise from the promotion of financial products in the rapidly evolving digital asset space.
next