Chiliz files injunction against Binance sponsorship of Argentine football.
Chiliz the blockchain operator of football fan token Socios.com has filed a commercial injunction against the Argentina Football Association (AFA).
The injunction has challenged the sponsorship of the AFA by leading cryptocurrency exchange Binance, which this week was announced as Argentine football’s ‘global partner’.
Securing Argentine football’s history biggest ever sponsorship, the AFA declared that Binance had become the title sponsor of the Argentine Professional Football League.
As title sponsor, AFA revealed that Binance would deliver an official Fan Token for Argentine football – a remit that has been challenged by Chiliz
Last summer, the AFA became football’s first governing body to launch a Fan Token, powered and hosted by the Socios.com blockchain platform.
Launching its approved $ARG fan token on the Socios.com platform, the AFA agreed to recognise its token as a ‘digital asset’ that provided holders with exclusive rights to rewards, voting rights and further unique promotion.
Issuing a corporate statement, Chiliz detailed – “Argentina’s National Commercial Tribunal has seen fit to grant Socios.com’s request and has issued a prohibitory injunction ordering Asociación del Fútbol Argentino (AFA) to recognise the agreements signed with Socios.com, including the Fan Token”.
Of note, Chiliz has demanded that the AFA maintain and safeguard its existing agreement, which would see Socios.com ARG fan token promoted by the Argentina national football team
“Sponsorship of the National Team and Naming Sponsor, and to refrain from performing any action, carry out any proceeding, or apply any measure that would hamper the exercise of Socios’ exclusive rights.” – the injunction noted.
“We welcome this decision from an independent justice system, which recognises that our contracts remain in full effect, and we will continue to actively collaborate with Argentina’s justice system to defend the rights of $ARG Fan Token holders.”