Butler and BitBoy’s Costly Binance Blunder Ends In $340,000 Settlement

Former NBA All-Star Jimmy Butler and YouTuber Ben ‘BitBoy’ Armstrong have settled a $280 million class-action lawsuit that accused them of fraudulently promoting Binance. As part of the settlement, the two will make a total payment of $340,000, and the case awaits court approval. The SEC accused Butler and Armstrong of conspiring and acting as agents of Binance, one of the world’s largest cryptocurrency trading platforms, of offering and selling security-based products without registration in March 2023.

Settlement Details

The recent lawsuit between basketball player Jimmy Butler, a high-profile NBA All-Star, and Ben ‘BitBoy’ Armstrong is a noteworthy event in the ongoing legal saga involving Binance. They claimed in legal papers that they need the $340,000 to pay victims who claimed to have been harmed by the promotion of the goods. Although the settlement has not been certified by the court yet, it remains an important milestone in the progress of the case.

The lawsuit puts forward claims that Butler and Armstrong actively engaged in advertising Binance and popularizing new clients to buy two major cryptos, BNB and BUSD. The plaintiffs argued that these digital assets fall under securities under United States law. The complaint also alleges that Butler and Armstrong received commissions every time they attracted a new customer to Binance through their promotions.

Counsel for the applicants stated in a court filing that they are pleased and satisfied with the progress of the case. “Plaintiffs have been actively seeking to bring these claims forward for the benefit of all Binance victims,” they said. The attorneys also pointed out that this is the first wave of proposed settlements in the case; they claim more are in the pipeline.

Background of the Lawsuit

A class-action lawsuit against NBA All-Star Jimmy Butler and Ben ‘BitBoy’ Armstrong is one of the recent legal activities affecting Binance. The lawsuit was filed in March 2023 and follows other litigations, including the one filed by the U.S. Commodity Futures Trading Commission (CFTC), which accused the company of unregistered trading and making conscious efforts to bypass U.S. laws.

The U.S. Securities and Exchange Commission (SEC) also brought charges against Binance, accusing the company of deceiving its clients and engaging in unlawful activities in the United States. Binance has faced many problems as authorities scrutinize its operations and the activities of its promoters. Ben ‘BitBoy’ Armstrong was also associated with the present lawsuit in his role as the public face of Hit Network, a media company with an interest in cryptocurrencies.

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More recently, in April this year, the CFTC subpoenaed Hit Network to provide details about trading involving fifteen specified tokens and their digital wallets. This subpoena shows that the CFTC is investigating potential fraud and other unlawful actions related to the use of digital currencies.

Implications for the Industry

This recent case involving NBA All-Star Jimmy Butler and Ben ‘BitBoy’ Armstrong shows that celebrities and influencers are increasingly exposed to legal consequences when endorsing cryptocurrencies. This is mainly due to the increasing regulatory actions against unregistered securities and fraud-related activities that are playing out in the industry, especially for those who promote digital assets with inadequate disclosures or research.

This case also brings into focus issues related to accountability and disclosure in the growing area of digital finance. The case against Butler and Armstrong is just one of the many legal cases against other influential personalities who have endorsed certain crypto platforms without knowledge of the risks or laws involved.

Legal authorities advise that other cases could emerge as authorities continue probing the operations of exchanges and promoters of the new digital currency. Depending on the outcome of this case, it could open the door to further combined civil and administrative enforcement actions against firms and individuals in the cryptocurrency sector.

Final Thoughts

For the cryptocurrency market, which is facing numerous legal issues, the resolution between NBA All-Star Jimmy Butler and Ben ‘BitBoy’ Armstrong marks a significant point in the case regarding Binance. As the court considers the proposed $340,000 settlement, the instance mitigates the increasingly complex legal exposures of individuals involved in promoting digital assets. Since increased regulatory attention is expected in this area in the future, the decision in this case may shape how celebrities and influencers navigate the nuances of crypto promotion. Keep following THEBITJournal for latest updates on cryptocurrency.