NBA Superstar Jimmy Butler and YouTuber BitBoy Settle Binance Promotion Lawsuit for $340K

Jimmy Aki
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NBA player Jimmy Butler and crypto YouTuber Ben Armstrong ‘BitBoy’ have agreed to settle a class-action lawsuit that accused them of promoting Binance, a cryptocurrency exchange allegedly involved in selling unregistered securities.

Butler and BitBoy Agree to Pay $340K

The total settlement amount is $340,000, with Butler paying $300,000 and Armstrong paying $40,000. Both men deny any wrongdoing but have decided to settle to avoid further litigation.

The lawsuit also names Binance, its jailed former CEO Changpeng Zhao, and the company’s U.S. branch, BAM Trading, as defendants. Paxos Trust Company, which issues stablecoins, was added as a defendant in an updated complaint filed in June 2023.

Butler’s settlement agreement states that while he denies all allegations, he believes he would be cleared of any liability if the case went to trial. Armstrong echoes this sentiment, saying that he has valid defenses against the claims but chose to settle to avoid prolonged legal battles.

Adam Moskowitz, managing partner at The Moskowitz Law Firm and the lead attorney in the case, spoke about the responsibility of those who promote unregistered securities.

According to him, “Each and every promoter of these unregistered securities, including Miami Heat star Jimmy Butler, will be held responsible.”
This latest development on civil penalty against promoters is coming when Binance and Changpeng Zhao face a new case of money laundering filed against them by three investors.

Who Else is Involved in the Lawsuit

This case is part of a broader wave of legal actions taken against Binance and its affiliates in recent times.

In June 2023, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance and Changpeng Zhao on the allegation of offering unregistered securities.

This was followed by lawsuits filed against the promoters of the platform, notable of which was football star Cristiano Ronaldo who was slammed with a $1 billion lawsuit.
In 2022, Binance announced its first “CR7” collection of non-fungible tokens (NFTs) in partnership with Ronaldo, which the footballer said would reward fans “for all the years of support”.

This case underscores the risks associated with celebrity endorsements in the cryptocurrency space, where the legal landscape is still evolving. As regulatory bodies like the SEC increase their focus on the industry, those involved in promoting digital assets may face similar challenges in the future.

The settlement between Butler, Armstrong, and the plaintiffs awaits preliminary approval from a Miami federal judge, a decision expected to be made soon.

If approved, the settlement would resolve the legal issues surrounding the promotion of Binance, though the broader case against Binance and its executives continues to unfold.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.