YouTube Influencer BitBoy Armstrong and Miami Heat’s Jimmy Butler Settle Crypto Promotion Claims
A recent settlement agreement worth $340,000 was reached by YouTube influencer Ben “BitBoy” Armstrong and basketball star Jimmy Butler. The agreement was made to resolve claims involving the promotion of unregistered securities offered through Binance. The settlement, conducted by The Moskowitz Law Firm, aims to address allegations of promoting the sale of unregistered securities, specifically Binance’s BNB token and BUSD stablecoin. Armstrong and Butler, along with other defendants, have been accused of aiding the crypto exchange in conducting these transactions.
Defendants Deny Wrongdoing
Despite their involvement in the lawsuit, both Armstrong and Butler have denied any wrongdoing. Butler strongly refutes the accusations and insists on his innocence if the case were to be taken to court. Similarly, Armstrong believes he has solid defenses against the claims of promoting unregistered securities. Despite their confidence in their defenses, both parties chose to settle the matter instead of engaging in prolonged litigation.
Settlement Details
As part of the settlement, Butler will pay $300,000, while Armstrong will pay $40,000 in monetary relief. The court documents highlight that Armstrong’s payment covers the total sum he received from any sources and that he had no personal knowledge of the nature of the Binance offerings as unregistered securities. Despite requests for comments, neither Armstrong nor Butler responded to inquiries from Decrypt.
- Butler to pay $300,000
- Armstrong to pay $40,000 in monetary relief
- Armstrong denies personal knowledge of unregistered securities
Moskowitz Law Firm’s Role
The Moskowitz Law Firm, spearheading the class-action lawsuit, has a history with Armstrong. Following a previous lawsuit involving Armstrong, the firm contacted the authorities, signaling potential threats. The firm’s Managing Partner, Adam Moskowitz, emphasized that the settlement agreements were reached through leverage, citing a recent court ruling that broad statements made online could hold promoters accountable.
Legal Implications
The case sheds light on the legal ramifications faced by influencers and celebrities in the crypto space. A court ruling established that promoters could be liable for making generalized statements online, even without directly targeting specific investors. This precedent has set a new standard for legal actions against individuals involved in promoting crypto projects and investments.
Recent Developments in Crypto Lawsuits
The class-action lawsuit involving BitBoy Armstrong and Jimmy Butler mirrors similar legal actions within the crypto industry. Recent cases, including those against basketball legend Shaquille O’Neal, have raised questions about the responsibilities of influencers and celebrities endorsing crypto projects. The legal landscape surrounding crypto promotions continues to evolve, with courts holding promoters accountable for their online activities and endorsements.
Hot Take: Influencers Facing Scrutiny in Crypto Promotions
As the crypto industry matures, regulators are becoming more vigilant about the promotion of digital assets by influencers and celebrities. The settlement between BitBoy Armstrong, Jimmy Butler, and The Moskowitz Law Firm underscores the legal risks associated with endorsing crypto projects without proper compliance. Influencers and celebrities must exercise caution and due diligence when promoting crypto investments to avoid legal repercussions in the evolving regulatory environment.
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