In January 2022, Binance became the primary sponsor of AFA (Argentina soccer association) through a five-year contract. However, the exchange now claims that the contract has been violated by the soccer association.
Binance terminates Argentina soccer sponsorship after contract dispute
Binance has terminated its five-year sponsorship agreement with the Argentina Football Association (AFA) after just one year, citing a contract violation. The agreement, signed in January 2022, made Binance the primary sponsor of Argentina’s national soccer team and the naming sponsor of the country’s national soccer league.
The Binance-AFA arrangement faced controversy as Binance signed the deal after AFA terminated its contract with fan token platform Socios abruptly. Despite the ongoing lawsuit against Socios, it remained the sole source of the official fan token, $ARG, for the organization until 2026.
Regulatory Scrutiny’s ImpactÂ
As one of the world’s largest exchanges, Binance has been affected by the bear market and regulatory crackdown, experiencing challenges similar to the rest of the cryptocurrency industry.
Binance has cut staff perks and laid off over 1,000 employees in response to declining profitability and regulatory challenges. More layoffs are possible, with some estimates suggesting that up to a third of the company’s 8,000 employees could be affected.
CZ’s handling of the U.S. investigation into Binance has been criticized, with some speculating that it led to the resignation of key personnel. However, CZ has denied these claims and reaffirmed his commitment to the company.
Important:Â Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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