Binance signed a five-year contract in January 2022 to be the primary sponsor of AFA.
The exchange alleges a violation of the contract by the Argentina soccer association.
After just one year of their five-year agreement, Binance has ended it, alleging a violation of contract on the side of the Argentina Football Association (AFA). Binance signed a five-year contract in January 2022 to be the primary sponsor of Argentina’s successful national soccer team and the naming sponsor of Argentina’s national soccer league.
Controversy surrounded the arrangement since it was signed by Binance after AFA abruptly ended its contract with fan token platform Socios. Even though Socios was sued by AFA, it continued to be the only source of the official fan token, $ARG, for the organization until 2026.
Regulatory Scrunity Effect
Binance, one of the biggest exchanges in the world, has felt the pain of the bear market and regulatory crackdown much like the rest of the cryptocurrency industry.
Furthermore, according to a recent report by the WSJ, dwindling profitability at Binance has forced the business to cut down on staff perks. It was estimated that more than a third of Binance’s prior 8,000 employees might be let go in the future after the business let off more than 1,000 people in recent weeks in response to mounting regulatory and legal problems throughout the globe.
Moreover, it was speculated that Binance CEO Zhao’s handling of the ongoing investigation by the U.S. authorities into Binance’s actions has contributed to the resignation of numerous key personnel. CZ, on the other hand, turned to Twitter to reaffirm his commitment to the organization. And debunked news reports that a large number of Binance employees were let go.