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Binance and NBA star Jimmy Butler slapped with fresh class action lawsuit for touting crypto

Jimmy Butler dribbles the ball during a game in 2021.Jimmy Butler.

Eric Gay/AP Images

  • Binance and several crypto influencers are being targeted in a $1 billion class action lawsuit.
  • That comes just a week after US regulators alleged Binance tried to evade trading rules.
  • Influencers targeted in the suit include Miami Heat star Jimmy Butler and Binance CEO Changpeng Zhao.

Binance and influencers associated with the cryptocurrency exchange have been named in a fresh class action lawsuit for unlawfully touting crypto, a week after regulators sued Binance for dodging trading rules.

The crypto exchange and several of its partners are now facing a $1 billion class action suit filed by Moskowitz Law Firm and Bois Schiller Flexner on Friday, Fortune reported. The firms, which have previously partnered to deliver two class action suits against troubled crypto exchanges, are alleging that Binance was trading cryptocurrencies as unregistered securities, and influencers paid by the exchange were unlawfully touting the tokens on social media.

The complaint names four influencers in particular who touted coins traded by Binance, including content creators Ben Armstrong and Graham Stephan, Miami Heat player Jimmy Butler, and Binance’s CEO, Changpeng Zhao. Moskowitz Law told Fortune it would continue to add other Binance influencers to the class action suit. 

The case was brought by three plaintiffs who all claimed to lose money from crypto that was promoted by Binance and its influencers, but the number of people affected by the crypto exchange’s actions could be “in the millions,” the complaint said. 

“We’ve been investigating these same unregistered security issues against Binance for over year, Moskowitz Law’s founder, Adam Moskowitz, told Fortune in a report published Saturday. 

News of the suit comes a week after Binance was hit with a 74-page complaint from the Commodities Futures Trading Commission, which claims the crypto exchange attempted to evade financial regulation and trading rules using methods that included encouraging US customers to use VPNs and writing up fake anti-money laundering reports. 

The case also mirrors previous lawsuits Moskowitz Law and Bois Schiller have brought over the past year, including a class action suit against crypto exchange Voyager, and two class action suits against FTX. The lawsuits have called out prominent crypto bulls, like Mark Cuban, Shaquille O’Neal, Steph Curry, and Tom Brady for touting various exchanges and digital tokens during the market’s most recent bull run of 2020-2021. 

Read the original article on Business Insider
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