Jimmy Butler & BitBoy to Pay $340K to Settle Binance Lawsuit

As a seasoned crypto investor with over a decade of experience under my belt, this recent development involving Jimmy Butler and Ben Armstrong settling a class-action lawsuit against Binance for allegedly selling unregistered securities is certainly raising some eyebrows in the community.


In a settlement agreement reached in May 2023, NBA player Jimmy Butler and digital currency influencer Ben Armstrong (also known as “BitBoy”) are required to pay a total of $340,000. The lawsuit, filed in March, claimed that they had endorsed the Binance cryptocurrency platform, which was accused of selling securities without proper registration.

On August 19th, 2024, the legal team representing our class group submitted a petition for approval of a settlement agreement in a Miami federal court. According to this settlement, Butler is set to contribute $300,000, while Armstrong will contribute $40,000. Neither entity has acknowledged any negligence; instead, they chose to settle as a means to reduce legal costs and save time.

Jimmy Butler & BitBoy to Pay $340K to Settle Binance Lawsuit

Contrarily, Butler’s settlement particulars show that he refuses to take any accountability and believes he will be cleared if the matter moves forward. Similarly, Armstrong too dismisses all allegations and is confident of his defense against the accusations.

Back in June 2023, I found myself named as a defendant alongside Binance, its ex-CEO Changpeng Zhao, and BAM Trading, their US affiliate, in a lawsuit. Paxos Trust Company was also included in this legal battle. As a crypto investor, I’m closely monitoring the developments of this case to understand its potential impact on the broader cryptocurrency market.

As a researcher, I’ve found that my team’s investigation has uncovered allegations that Binance was selling unregistered securities. I believe it’s crucial for those responsible, such as Butler, to be held accountable for these actions.

As a crypto investor, I find myself questioning the integrity of Butler and Armstrong, who have been accused of being paid promoters for Binance. The allegation is that Binance, under their leadership, sold cryptocurrencies believed to be unregistered securities. In an attempt to dismiss the case involving themselves, Zhao, and Binance, both Butler and Armstrong have made efforts to have the case thrown out. This raises concerns about transparency and legal compliance within the crypto exchange industry.

Armstrong’s lawyer, Darren Heitner, confirmed that the matter had been settled without revealing further details. As of yet, no statement has been made by Butler’s legal representatives in response to inquiries for comment.

As a researcher, I’m highlighting a potential impact that might pertain to millions of Binance users. This group includes those who have invested in Binance’s BNB Vault, Simple Earn, or any staking services, and also those who traded or held BNB, BUSD, or other tokens on the platform.

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2024-08-22 08:36