YouTube Influencer Ben “BitBoy” Armstrong and NBA Star Jimmy Butler Settle Lawsuit Over Binance Promotions

YouTube influencer Ben "BitBoy" Armstrong and NBA star Jimmy Butler have agreed to a $340,000 settlement to resolve claims that they promoted unregistered securities through Binance. The lawsuit, led by The Moskowitz Law Firm, accuses the two of endorsing Binance's BNB token and BUSD stablecoin, which were offered as unregistered securities.

Butler will pay $300,000, while Armstrong will contribute $40,000 in monetary relief. Despite the settlement, Armstrong maintains that he believes he has valid defenses, asserting he had no personal knowledge that the Binance offerings were unregistered securities.

Background

The class-action lawsuit also names Binance founder and former CEO Changpeng Zhao and Binance.US as defendants. The legal action is part of broader scrutiny on crypto promotions and celebrity endorsements, following similar cases involving major figures in the industry.

Legal Implications

The settlement comes after a significant ruling by U.S. District Judge Federico Moreno, who determined that broad online promotions with financial incentives could constitute grounds for liability. This precedent could impact future cases involving celebrity endorsements of cryptocurrency products, such as the ongoing lawsuit against Shaquille O’Neal over his Solana-based NFT project.

New Legal Challenges for Binance

In addition to the class-action lawsuit, Binance and its former CEO Zhao face new legal troubles. Three crypto investors have filed a lawsuit accusing the company of enabling large-scale money laundering. The plaintiffs claim Binance facilitated the laundering of stolen digital assets through its platform, violating the Racketeer Influenced and Corrupt Organizations (RICO) Act.

This latest lawsuit further complicates Binance's legal battles, adding to the company's challenges as it navigates regulatory scrutiny and ongoing investigations.