Binance has ended its five-year partnership with the Argentine soccer association after just one year, citing a breach of contract. In a Spanish-language statement posted on Twitter, the company said, We regularly evaluate the results of our partnerships around the world and unfortunately, despite being offered time and opportunities, the AFA has not fully complied with its contractual obligations, which goes against our business values and our partnership principles.
The agreement, which was signed in January 2022, made Binance the main sponsor of Argentina’s national soccer team and the naming sponsor of its national soccer league. The deal was met with criticism, as AFA had previously terminated a contract with the fan token site Socios to sign with Binance. Socios then sued AFA, though the company remained the exclusive provider of AFA’s official fan token, $ARG, until 2026.
The bear market and regulatory crackdown have had a negative effect on the crypto markets, and Binance has not been immune. The Wall Street Journal reported that Binance has stopped offering certain benefits to its employees due to declining profits. Additionally, the company has cut more than 1,000 workers in recent weeks, with the potential for more than a third of its 8,000 employees to be let go. The Securities and Exchange Commission (SEC) also sued Binance, Binance.US, and founder Changpeng CZ Zhao in June for allegedly operating as an unregistered securities exchange, broker, and clearinghouse.