Ben Armstrong, popularly known as “BitBoy Crypto,” and the NBA star Jimmy Butler have reached an out-of-court settlement regarding the class action lawsuit involving Binance. The case was filed in March 2023, and it was alleged that they had engaged in fraudulent activities to push Binance, one of the largest crypto exchanges. Armstrong and Butler will collectively pay $340,000 in settlements that still need the court’s approval.
BitBoy and Jimmy Butler Settle Binance Lawsuit
The class-action lawsuit claimed that BitBoy and Jimmy Butler endorsed Binance while concealing their commercial relationships with the exchange. The plaintiffs claimed these promotions were misleading, and investors lured into investing lost money. While Armstrong and Butler confirmed they received compensation from Binance, they said they did not harm the exchange’s customers.
This development came when Binance faced several legal restraints, including a lawsuit by the U.S. Securities and Exchange Commission (SEC). The SEC has alleged that Binance sold unregistered securities and deceived US customers. This broader legal context pressures the exchange and its affiliates, making the settlement smart for BitBoy and Butler.
Binance Continues Expanding Despite Legal Hurdles
Nonetheless, Binance remains functional and has been working on how to address legal issues that arise from time to time. The exchange recently disclosed that it had delisted nine altcoin trading pairs due to an internal examination. These actions are perceived as measures Binance is taking to reposition itself and ensure it complies with the laws.
Binance also added new trading pairs and bot services for popular cryptos such as DOGE and AAVE. Also, the exchange will introduce Dogs (DOGS), a memecoin, as the 57th project on the launchpool. These developments show that Binance is willing to continue its business activities despite its legal challenges.
The case of BitBoy and Jimmy Butler shows how promoting cryptocurrencies is under increased scrutiny. The authorities are increasingly concerned with the duties of influencers and celebrities who endorse digital assets. This case serves as a reminder that failure to disclose financial relationships in these promotions may result in legal repercussions.
Also Read: Binance Agrees to Pay $1.76 Million in Brazil Settlement
