Judge determines that Argentina team breaks contract with Binance
2 min readA judge in Argentina has ruled that the Argentine Football Association (AFA) and cryptocurrency exchange Binance must break the contract they signed.
In the decision, the judge highlighted that the Argentine team must comply with the exclusivity agreement previously signed with Socios.com and, with that, break the agreement made with the exchange.
“The AFA and Binance must refrain from carrying out any act of consummation of pre-contractual negotiations, instrumentation, conclusion or execution of commercial agreements contained in the announcement made by the AFA on January 24 on its website,” the judge ruled. Maria Jose Gigy Traynor.
The decision favors Socios.com in the case that involves not only sponsorship, but the right to issue Fan Tokens and NFTs. The precautionary resolution includes the impediment to the execution of any act that changes “the rights of the partners emerging from the agreements” or of those who acquired the fan tokens.
AFA and Binance
According to the judge, the AFA must fulfill the contract that was signed with Socios.com and not advance any other contract signed later that prevents the execution of the first one.
“We celebrate this decision of an independent court, which recognizes that the contracts remain in force. We express our willingness to continue actively collaborating with the Argentine justice system to defend the rights of the owners of Fan Tokens $ARG,” Socios.com highlighted in a statement.
As soon as it learned of the partnership between AFA and Binance, Socios.com claimed that AFA, by entering into an agreement with another company for the issuance of tokens, was “showing an absolute lack of respect for these millions of fans, who actively encouraged the purchase of fan tokens on Socios.com.”
Shortly after the decision was published, and on the same day that the Argentine national team played against the Chilean national team, the price of the $ARG token increased by 100%.
The $ARG even traded at $2.64 on both the Socios.com and Chiliz platforms.
