Jimmy Butler and Ben 'BitBoy' Armstrong Pay $340K to Settle Binance Lawsuit – What You Need to Know!

Overview

In a significant development in the world of cryptocurrency, NBA star Jimmy Butler and YouTube influencer Ben 'BitBoy' Armstrong have agreed to pay a total of $340,000 to settle allegations concerning the promotion of unregistered securities associated with Binance.

Lawsuit Details

The lawsuit, initiated last March, claims that both Butler and Armstrong played roles in facilitating the sale of unregistered securities, notably Binance’s BNB token and BUSD, a stablecoin that was previously issued by Paxos Trust.

Settlement Agreement

Jimmy Butler will pay $300,000, while Ben Armstrong will contribute $40,000. Armstrong, while agreeing to the settlement, maintains that he believes he has valid defenses against the claims. In a recent court filing, Butler stated he “adamantly denies all wrongdoing”, expressing confidence that he would be cleared of liability if the case went to trial.

Broader Implications

This case is part of a larger trend where celebrity endorsements in the crypto space are being scrutinized. The managing partner of The Moskowitz Law Firm, Adam Moskowitz, indicated that recent court rulings suggest that promoters can be held liable for online statements made broadly, not just those aimed at specific investors. This precedent could have far-reaching implications for how influencers engage with cryptocurrencies in the future.

Related Legal Context

The topic of liability in crypto promotions has also emerged in other high-profile cases, including one involving Shaquille O’Neal and his Solana-based NFT project. As these legal battles unfold, the crypto community watches closely to see how these rulings will shape the future of celebrity involvement in the crypto space.