Miami, FL (August 22, 2024): In a move to avoid a protracted legal battle, NBA player Jimmy Butler and crypto influencer Ben Armstrong (“BitBoy”) have agreed to pay a combined $340,000 to settle a class-action lawsuit. The suit alleges they promoted cryptocurrency exchange Binance, which is accused of selling unregistered securities.
Settling Without Admission of Guilt: Both Butler and Armstrong maintain their innocence. Butler’s settlement, obtained by Cointelegraph, states he “adamantly denies any and all wrongdoing” and believes he would be “absolved of all liability” if the case went to trial. Armstrong, contributing $40,000 to the settlement, echoes this sentiment, denying “any wrongdoing or liability” and asserting “valid defenses” to the claims. Their primary motivation for settling appears to be avoiding further legal expenses and time commitments.
Wider Lawsuit Targets Binance and Others: The lawsuit extends beyond Butler and Armstrong, naming Binance, its former CEO Changpeng Zhao (currently jailed), and its US arm (BAM Trading) as defendants. Additionally, a June 2023 amendment added stablecoin issuer Paxos Trust Company. Lawyers representing the class action are pushing for Binance to be held accountable for allegedly selling unregistered securities.
Plaintiffs Seek Millions: The lawsuit potentially impacts millions of users on both Binance.US and Binance.com who utilized its BNB Vault, Simple Earn, staking products, or purchased certain cryptocurrencies. The plaintiffs’ lawyer, Adam Moskowitz, emphasizes that “every promoter” of these alleged unregistered securities, including Butler, will be held responsible.
Remaining Defendants Mum on Status: While Cointelegraph reached out to various parties involved in the lawsuit, including Binance, Zhao’s lawyers, and Binance.US, only Armstrong’s lawyer offered a brief statement confirming the settlement. Butler’s legal team has yet to comment.
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