Professional basketball player Jimmy Butler, who plays for the Miami Heat, has requested to be dismissed from a class-action lawsuit involving the alleged promotion of unregistered securities by Binance. Butler’s lawyers argued that the tweets he appeared in did not promote the named securities and therefore did not contribute to their promotion. In a filing on July 24, his lawyers stated that Butler’s tweets focused on warning against celebrity crypto endorsements and encouraged potential Binance customers to conduct their own research on crypto investments.
The lawsuit, filed in March, included Butler, Binance, its CEO Changpeng “CZ” Zhao, and YouTubers Graham Stephan and Ben Armstrong, also known as BitBoy Crypto. Butler was engaged by Binance in 2022 to promote the exchange leading up to the Super Bowl. He appeared in a video promoting a free non-fungible token (NFT) collection from Binance and subsequently tweeted two more videos.
In the video posted by Binance, Butler emphasized the importance of trusting oneself and conducting thorough research before making investment decisions. The first tweet for the exchange encouraged users to participate in a giveaway of 2,222 NFTs by using the hashtag “#CryptoCelebAlert” during the Super Bowl. Another tweet urged followers to trust themselves and do their own research into crypto investments.
The amended complaint filed on June 27 argued that Butler’s statements were deceptive because they appeared alongside the promotion of the free Binance NFTs and the exchange platform. However, Butler’s lawyers maintained that his tweets did not recommend any specific investments but rather emphasized the need for individual research.
In addition to Butler, Zhao, Binance, and Armstrong have also filed motions to dismiss the lawsuit. Finance YouTuber Graham Stephan was dismissed from the suit on June 15. The class-action lawsuit raises concerns about the alleged promotion of unregistered securities by celebrities and influencers, and seeks to hold them accountable for their involvement.
This case highlights the growing scrutiny surrounding the promotion of cryptocurrencies and the responsibility of celebrities and influencers in endorsing such investments. It serves as a reminder for individuals to conduct their own research and exercise caution when considering investment opportunities in the crypto market.
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