In a recent development, Miami Heat star Jimmy Butler and YouTube influencer Ben Armstrong have reached a settlement agreement to pay a total of $340,000 to resolve claims from binance investors. This comes after extensive mediation efforts and a news/articles/2024-08-21/miami-heat-s-jimmy-butler-resolves-claims-by-binance-investors?utm_content=crypto&utm_medium=social&utm_campaign=socialflow-organic&utm_source=twitter">Bloomberg report highlighted the lawyers' request for preliminary approval from a federal judge in Miami.
Butler and Armstrong Deny Wrongdoing
The settlement is part of a larger lawsuit involving binance and its co-founder, Changpeng Zhao, where investors allege being enticed into purchasing cryptocurrencies like binance’s BNB token, which were purportedly unregistered securities under U.S. law. Despite this, both Butler and Armstrong have maintained their innocence throughout the legal proceedings.
If the judge grants preliminary approval, holders of the binance securities will have the chance to voice any objections during a hearing before final approval is granted. This case marks a significant development in the ongoing legal saga surrounding binance and its key figures.
New Class Action Lawsuit Against binance
Adding to the legal woes of binance, three cryptocurrency investors have recently filed a class action lawsuit against the exchange platform and its previous CEO, Changpeng “CZ” Zhao. The lawsuit, lodged in the U.S. District Court for the Western District of Washington, Seattle, alleges that binance played a role in large-scale money laundering activities.
The plaintiffs, Philip Martin, Natalie Tang, and Yatin Khanna, assert that stolen digital assets were laundered through binance’s platform, rendering them untraceable. They argue that the exchange’s actions violated the Racketeer Influenced and Corrupt Organizations (RICO) Act, signaling serious legal implications.
Furthermore, the lawsuit accuses binance of operating as an unlicensed money-transmitting business under Zhao's leadership, flouting anti-money laundering (AML) regulations and enabling illicit transactions. This latest legal challenge adds to the mounting legal troubles faced by binance and its former CEO.
These ongoing legal battles underscore the complexities and challenges present in the cryptocurrency landscape, emphasizing the importance of regulatory compliance and ethical business practices to ensure a transparent and trustworthy environment for all stakeholders involved.
