BitBoy and NBA Star Settle Binance Promotion Lawsuit for $340,000

Cryptoblogger Ben Armstrong, known as BitBoy, and NBA star Jimmy Butler have agreed to a combined settlement of $340,000 to resolve a class-action lawsuit over promoting Binance, as reported by Cointelegraph.

The claim alleges that the cryptocurrency exchange sold unregistered securities.

On August 19, the influencers’ lawyers filed a motion in court for preliminary approval of the deal, which would conclude the litigation. Under the settlement terms, Butler will pay $300,000, while Armstrong will contribute $40,000.

Both denied any wrongdoing but agreed to the settlement to avoid the time and expense of a trial.

The lawsuit also names Binance, its former CEO Changpeng Zhao, the operator of the exchange’s U.S. division BAM Trading, and stablecoin issuer Paxos Trust Company as defendants.

Adam Moskowitz, managing partner of the law firm Moskowitz, leading the plaintiffs’ representatives, stated that a year-long investigation revealed Binance’s sale of unregistered securities. According to him, the exchange and all involved in its promotion, including Miami Heat player Butler, will be held accountable.

The lawsuit claims the basketball player and blogger acted as commercial promoters of Binance, advertising the platform’s services.

Users of BNB Vault, Simple Earn, or staking products, as well as those who bought or sold BNB (BNB), Binance USD (BUSD), Solana (SOL), Cardano (ADA), Polygon (MATIC), Filecoin (FIL), Cosmos (ATOM), The Sandbox (SAND), Decentraland (MANA), Algorand (ALGO), Axie Infinity (AXS), and COTI (COTI) through Binance, may potentially join the settlement.

Previously, BitBoy was named as a defendant in a class-action lawsuit for “actively promoting” the collapsed cryptocurrency exchange FTX.