Miami Heat's player Jimmy Butler and YouTuber Ben Armstrong have agreed to pay $340,000 to settle a lawsuit alleging they misled customers into buying unregistered Binance securities.
Binance Lawsuit
The lawsuit filed last year also named Binance and its co-founder Changpeng Zhao as defendants, alleging they promoted unregistered cryptocurrencies and tokens, including Binance's BNB token, in violation of US securities laws.
Settlement Agreement
Class representative lawyers asked a federal judge in Miami to sign off on the agreement reached after months of serious talks aided by a mediator. The judge scheduled a hearing to allow affected buyers to object to the deal before sealing it.
Consequences and Parallels
The Binance lawsuit follows a similar case where a federal judge ruled that ex-NBA star Shaquille O'Neal might be considered a seller of non-fungible tokens if allegations related to their collapse are proven true.
Armstrong and Butler have denied wrongdoing in the case. The case continues to spotlight issues related to the registration and regulation of cryptocurrencies in the US market.
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