NBA All-Star Jimmy Butler and Ben 'BitBoy' Armstrong agree to settle Binance related class action lawsuit
Quick Take
- Ben Armstrong and Jimmy Butler agreed to pay $340,000 total as part of that settlement, which still needs court approval.
- The lawsuit alleged that Butler and Armstrong promoted Binance and solicited new customers and received commissions by doing so, according to the complaint.
YouTuber Ben Armstrong and Miami Heat basketball player Jimmy Butler agreed to settle claims that they hyped up unregistered securities after being paid by Binance to unlawfully promote those assets.
Armstrong and Butler agreed to pay $340,000 as part of that settlement, which still needs court approval. The class action lawsuit was filed in March 2023 and accused the two and Binance of causing damages to consumers. Both denied wrongdoing, according to reporting from Bloomberg.
"Plaintiffs have worked diligently to litigate these claims to benefit all Binance victims. Today, those efforts begin to bear fruit," lawyers representing the plaintiffs said in a court filing on Monday. "Plaintiffs are proud to announce to the Court the first tranche of proposed Class Settlements, made with two alleged Binance Promoters."
The lawsuit alleged that Butler and Armstrong promoted Binance and solicited new customers and received commissions by doing so, according to the complaint. The complaint also said that cryptocurrencies such as BNB and BUSD were securities.
The class action lawsuit was filed days after the U.S. Commodity Futures Trading Commission sued Binance for unregistered trading activity and said they actively tried to evade the law. Later, the Securities and Exchange Commission alleged that Binance repeatedly lied to customers and said the exchange was operating in the U.S. illegally.
Earlier this month, the CFTC issued a subpoena against Hit Network, the crypto-focused media company that previously had Armstrong as its public face, The Block reported. The subpoena requests information about trading activity and digital wallets connected with the 15 tokens. It states that it is part of an investigation into persons engaged in fraud with respect to digital currencies and related unlawful conduct.
Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.
© 2024 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.