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NBA Star and YouTuber Settle Binance Class Action Lawsuit, Paying $340K

Thursday, 22/08/2024 | 04:59 GMT by

Arnab Shome

  • Jimmy Butler will pay $300,000, while ‘BitBoy’ will contribute $40,000.
  • Both deny any wrongdoing but wanted to avoid escalating legal expenses.

Binance

NBA star Jimmy Butler and crypto YouTuber Ben Armstrong, known as “BitBoy,” have agreed to settle a class action lawsuit brought against them for promoting alleged unregistered securities sold by Binance, paying a combined total of $340,000.

Butler has agreed to settle for $300,000, while Armstrong will pay $40,000, according to CoinTelegraph. Despite the settlement, both continue to deny any wrongdoing.

Settled but Denied Wrongdoing

Butler’s settlement agreement emphasises that he “adamantly denies any and all wrongdoing,” asserting that he believes he would “be absolved of all liability” if the case were to reach a conclusion. Similarly, Armstrong denies “any wrongdoing or liability,” maintaining that he has “valid defences” against the allegations.

However, both individuals have opted to settle to avoid the escalating costs and time commitment of a prolonged legal battle.

According to a court filing by the legal representatives of the class action lawsuit in Miami on 19 August, the lawyers are now seeking the court’s preliminary approval for the settlement deal.

Another Class Action Lawsuit against Binance

The class action lawsuit was initially filed in March 2023 and also names Binance, its US-based unit, and former CEO Changpeng Zhao. In June 2023, the lawsuit was amended to include stablecoin issuer Paxos Trust Company as a defendant.

The lawsuit represents potentially millions of Binance.US and Binance.com customers who used or invested in BNB Vault, Simple Earn, or any staking products on the platforms. It further claims that BNB, the now-defunct stablecoin Binance USD (BUSD), Solana, Cardano, Polygon, Filecoin, Cosmos, The Sandbox, Decentraland, Algorand, Axie Infinity, and Coti are unregistered securities, meaning anyone who invested in those tokens may be eligible to receive settlement proceeds.

Butler and Armstrong were accused of promoting these alleged unregistered securities sold by Binance.

Interestingly, the Securities and Exchange Commission (SEC) has also been pursuing many cryptocurrency exchanges, alleging that they offer unregistered securities. The regulatory agency even took Binance to court over several allegations. Even for the SEC, proving whether a cryptocurrency is an unregistered security is complex and time-consuming.

Meanwhile, football legend Cristiano Ronaldo is also facing a $1 billion class action lawsuit for endorsing Binance, specifically regarding the non-fungible tokens (NFTs) collection launched in November 2022. In May, a Florida judge rejected a motion to dismiss the case.

Furthermore, Finance Magnates recently reported that a new class action lawsuit has been filed against Binance and Zhao, alleging that the exchange facilitated money laundering for criminals.

NBA star Jimmy Butler and crypto YouTuber Ben Armstrong, known as “BitBoy,” have agreed to settle a class action lawsuit brought against them for promoting alleged unregistered securities sold by Binance, paying a combined total of $340,000.

Butler has agreed to settle for $300,000, while Armstrong will pay $40,000, according to CoinTelegraph. Despite the settlement, both continue to deny any wrongdoing.

Settled but Denied Wrongdoing

Butler’s settlement agreement emphasises that he “adamantly denies any and all wrongdoing,” asserting that he believes he would “be absolved of all liability” if the case were to reach a conclusion. Similarly, Armstrong denies “any wrongdoing or liability,” maintaining that he has “valid defences” against the allegations.

However, both individuals have opted to settle to avoid the escalating costs and time commitment of a prolonged legal battle.

According to a court filing by the legal representatives of the class action lawsuit in Miami on 19 August, the lawyers are now seeking the court’s preliminary approval for the settlement deal.

Another Class Action Lawsuit against Binance

The class action lawsuit was initially filed in March 2023 and also names Binance, its US-based unit, and former CEO Changpeng Zhao. In June 2023, the lawsuit was amended to include stablecoin issuer Paxos Trust Company as a defendant.

The lawsuit represents potentially millions of Binance.US and Binance.com customers who used or invested in BNB Vault, Simple Earn, or any staking products on the platforms. It further claims that BNB, the now-defunct stablecoin Binance USD (BUSD), Solana, Cardano, Polygon, Filecoin, Cosmos, The Sandbox, Decentraland, Algorand, Axie Infinity, and Coti are unregistered securities, meaning anyone who invested in those tokens may be eligible to receive settlement proceeds.

Butler and Armstrong were accused of promoting these alleged unregistered securities sold by Binance.

Interestingly, the Securities and Exchange Commission (SEC) has also been pursuing many cryptocurrency exchanges, alleging that they offer unregistered securities. The regulatory agency even took Binance to court over several allegations. Even for the SEC, proving whether a cryptocurrency is an unregistered security is complex and time-consuming.

Meanwhile, football legend Cristiano Ronaldo is also facing a $1 billion class action lawsuit for endorsing Binance, specifically regarding the non-fungible tokens (NFTs) collection launched in November 2022. In May, a Florida judge rejected a motion to dismiss the case.

Furthermore, Finance Magnates recently reported that a new class action lawsuit has been filed against Binance and Zhao, alleging that the exchange facilitated money laundering for criminals.

Arnab Shome

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Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.

  • 6452 Articles
  • 86 Followers

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    In this video, Demetris Taxitaris, CEO of MAP S. Platis, discusses the significant impact of the upcoming MiCA regulation on the European crypto industry. He explains how MiCA will revolutionize the industry by transitioning crypto exchanges from an unregulated environment to a fully regulated one, presenting numerous challenges, especially in compliance. Demetris also introduces MAP S. Platis’ new virtual compliance assistant, “VIA,” an AI-powered tool designed to support compliance officers by providing reliable information and assisting with everyday compliance tasks. He emphasizes that while VIA is a valuable tool, it currently complements rather than replaces the compliance function, with the potential for further advancements in the future.

    📣 Stay updated with the latest in finance and trading!
    Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:

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    Panayiotis Omirou | MAP Fintech | Executive Testimonials


    Panayiotis Omirou | MAP Fintech | Executive Testimonials

    In this video, Panayiotis Omirou, CEO of MAP FinTech, discusses the challenges and advancements in implementing regulatory technology (RegTech) solutions. He addresses key challenges such as data consolidation from legacy systems, security concerns, and the need for in-house training. Panayiotis also explores how AI is enhancing data mapping, live monitoring, and reconciliation in regulatory reporting. The discussion concludes with insights on the gradual adoption of AI in RegTech to ensure accuracy and minimize risks.

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    In this video, Panayiotis Omirou, CEO of MAP FinTech, discusses the challenges and advancements in implementing regulatory technology (RegTech) solutions. He addresses key challenges such as data consolidation from legacy systems, security concerns, and the need for in-house training. Panayiotis also explores how AI is enhancing data mapping, live monitoring, and reconciliation in regulatory reporting. The discussion concludes with insights on the gradual adoption of AI in RegTech to ensure accuracy and minimize risks.

    📣 Stay updated with the latest in finance and trading!
    Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:

    🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
    👍 Facebook: https://www.facebook.com/financemagnates/
    📸 Instagram: https://www.instagram.com/financemagnates_official
    🐦 X (Twitter): https://twitter.com/financemagnates/
    📡 RSS Feed: https://www.financemagnates.com/feed/
    ▶️ Telegram: https://t.me/financemagnatesnews

    Don’t miss out on our latest videos, interviews, and event coverage.
    🔔 Subscribe to our YouTube channel for more!🔔

    In this video, Panayiotis Omirou, CEO of MAP FinTech, discusses the challenges and advancements in implementing regulatory technology (RegTech) solutions. He addresses key challenges such as data consolidation from legacy systems, security concerns, and the need for in-house training. Panayiotis also explores how AI is enhancing data mapping, live monitoring, and reconciliation in regulatory reporting. The discussion concludes with insights on the gradual adoption of AI in RegTech to ensure accuracy and minimize risks.

    📣 Stay updated with the latest in finance and trading!
    Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:

    🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
    👍 Facebook: https://www.facebook.com/financemagnates/
    📸 Instagram: https://www.instagram.com/financemagnates_official
    🐦 X (Twitter): https://twitter.com/financemagnates/
    📡 RSS Feed: https://www.financemagnates.com/feed/
    ▶️ Telegram: https://t.me/financemagnatesnews

    Don’t miss out on our latest videos, interviews, and event coverage.
    🔔 Subscribe to our YouTube channel for more!🔔


    In this video, Panayiotis Omirou, CEO of MAP FinTech, discusses the challenges and advancements in implementing regulatory technology (RegTech) solutions. He addresses key challenges such as data consolidation from legacy systems, security concerns, and the need for in-house training. Panayiotis also explores how AI is enhancing data mapping, live monitoring, and reconciliation in regulatory reporting. The discussion concludes with insights on the gradual adoption of AI in RegTech to ensure accuracy and minimize risks.

    📣 Stay updated with the latest in finance and trading!
    Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:

    🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
    👍 Facebook: https://www.facebook.com/financemagnates/
    📸 Instagram: https://www.instagram.com/financemagnates_official
    🐦 X (Twitter): https://twitter.com/financemagnates/
    📡 RSS Feed: https://www.financemagnates.com/feed/
    ▶️ Telegram: https://t.me/financemagnatesnews

    Don’t miss out on our latest videos, interviews, and event coverage.
    🔔 Subscribe to our YouTube channel for more!🔔

    In this video, Panayiotis Omirou, CEO of MAP FinTech, discusses the challenges and advancements in implementing regulatory technology (RegTech) solutions. He addresses key challenges such as data consolidation from legacy systems, security concerns, and the need for in-house training. Panayiotis also explores how AI is enhancing data mapping, live monitoring, and reconciliation in regulatory reporting. The discussion concludes with insights on the gradual adoption of AI in RegTech to ensure accuracy and minimize risks.

    📣 Stay updated with the latest in finance and trading!
    Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:

    🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
    👍 Facebook: https://www.facebook.com/financemagnates/
    📸 Instagram: https://www.instagram.com/financemagnates_official
    🐦 X (Twitter): https://twitter.com/financemagnates/
    📡 RSS Feed: https://www.financemagnates.com/feed/
    ▶️ Telegram: https://t.me/financemagnatesnews

    Don’t miss out on our latest videos, interviews, and event coverage.
    🔔 Subscribe to our YouTube channel for more!🔔


    In this video, Panayiotis Omirou, CEO of MAP FinTech, discusses the challenges and advancements in implementing regulatory technology (RegTech) solutions. He addresses key challenges such as data consolidation from legacy systems, security concerns, and the need for in-house training. Panayiotis also explores how AI is enhancing data mapping, live monitoring, and reconciliation in regulatory reporting. The discussion concludes with insights on the gradual adoption of AI in RegTech to ensure accuracy and minimize risks.

    📣 Stay updated with the latest in finance and trading!
    Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:

    🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
    👍 Facebook: https://www.facebook.com/financemagnates/
    📸 Instagram: https://www.instagram.com/financemagnates_official
    🐦 X (Twitter): https://twitter.com/financemagnates/
    📡 RSS Feed: https://www.financemagnates.com/feed/
    ▶️ Telegram: https://t.me/financemagnatesnews

    Don’t miss out on our latest videos, interviews, and event coverage.
    🔔 Subscribe to our YouTube channel for more!🔔

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