Argentina Court has stopped a sponsorship agreement between the Argentine Football Association (AFA) and the Binance exchange.
The court directs AFA to cancel all agreements announced or signed with Binance, as AFA previously entered into an exclusive fan token issuance contract with Chiliz-owned platform Socios.
The judge who decided against AFA considered that the agreement signed with Socios conflicted with the new contract with Binance.
Theoretically, if the AFA issued a fan token with Binance, what benefits would Socios token holders continue to receive?
The court ordered AFA to refrain from taking any action, conducting any proceedings, or taking any measures that may interfere with the exclusive rights of the Socios platform. The AFA acknowledged the order but said it would appeal against the decision.
The conflict of interest arose last week after it was reported that the AFA had agreed to a five-year partnership with Binance. The crypto exchange was supposed to become the main sponsor of the Argentina football team. For Binance, the deal was the first partnership with any national football organization.