Basketball player Jimmy Butler and crypto influencer Ben Armstrong, or “BitBoy,” will have to pay $340,000 to settle a class-action lawsuit. The case was started in March 2023, stating that they have promoted Binance – a cryptocurrency platform that allegedly sold securities without proper registration.
On 19th August 2024, the class group’s lawyers petitioned a Miami federal judge to approve the settlement agreement. As per the agreement, Butler will contribute $300,000 and Armstrong $40,000. However, both entities have not admitted any negligence but prefer to settle to save on legal expenses and time.
However, Butler’s settlement details reveal that he does not accept any form of responsibility and feels that he would be vindicated if the case proceeded. In the same way, Armstrong has also denied all accusations and feels that he has adequate protection against the charges.
It also targets Binance, the exchange’s former CEO Changpeng Zhao, and its US affiliate, BAM Trading. Paxos Trust Company was joined as a defendant in the suit in June 2023.
Adam Moskowitz, the lead lawyer for the plaintiffs, said that their probe revealed that Binance sold unregistered securities. He said that all promoters including Butler should be made to answer for their deeds.
The complaint accuses Butler and Armstrong of being paid promoters for Binance and that the exchange sold cryptocurrencies that it believed were unregistered securities. Butler and Armstrong had both filed to dismiss the case alongside Zhao and Binance.
Armstrong’s attorney, Darren Heitner, acknowledged that the case was resolved but did not disclose any additional information. Butler’s legal team has not issued any response to the requests for comment.
It could potentially affect millions of Binance users, who invested in Binance’s BNB Vault, Simple Earn, or any staking services, or traded or held BNB, BUSD, or other tokens.
