Settlement Agreement Details
Basketball star Jimmy Butler and crypto influencer Ben Armstrong, also known as “BitBoy,” are set to pay a total of $340,000 to settle a class-action lawsuit. This lawsuit, initiated in March 2023, alleged that both individuals promoted Binance—a cryptocurrency platform accused of selling unregistered securities without proper registration.
On August 19, 2024, the lawyers representing the class group petitioned a Miami federal judge to approve the settlement agreement. According to the terms:
- Jimmy Butler: $300,000
- Ben Armstrong: $40,000
Despite agreeing to the settlement, neither Butler nor Armstrong has admitted to any negligence. Both parties opted to settle to avoid further legal expenses and time.
Position of the Defendants
Details from Butler’s settlement reveal that he does not accept any responsibility and believes he would be vindicated if the case had proceeded. Similarly, Armstrong denies all accusations and maintains that he has adequate protection against the charges.
Wider Implications of the Lawsuit
The lawsuit also targets Binance, its former CEO Changpeng Zhao, and its US affiliate, BAM Trading. Paxos Trust Company was added as a defendant in June 2023. According to Adam Moskowitz, the lead lawyer for the plaintiffs:
“Our investigation revealed that Binance sold unregistered securities. All promoters, including Butler, should be held accountable for their actions.”
The complaint alleges that Butler and Armstrong were paid promoters for Binance and that the platform sold cryptocurrencies believed to be unregistered securities. Both Butler and Armstrong, along with Zhao and Binance, had previously filed to dismiss the case.
Statements from Legal Representatives
Armstrong’s attorney, Darren Heitner, confirmed that the case was resolved but did not provide further details. Butler’s legal team has yet to respond to requests for comment regarding the settlement.
Impact on Binance Users
The lawsuit and subsequent settlement could potentially affect millions of Binance users. This includes those who invested in Binance’s BNB Vault, Simple Earn, staking services, or traded or held BNB, BUSD, or other tokens.
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