Argentine Football Association Ordered To Recognize Fan Token Agreement Signed With Socios.com

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Chiliz, a blockchain provider for the sports and entertainment industry, filed a commercial injunction against the Argentine Football Association (AFA) for a “flagrant breach of contract”.

Chiliz Stunned by the AFA Announcement

Chiliz legal action against the AFA came as a response to a new agreement between the AFA and Binance announced in mid-week which named the cryptocurrency exchange platform the global primary sponsor of Argentina’s national football teams. It also gave Binance the naming rights to the top-flight Primera Division, as well as the right to deliver the official fan token of the AFA.

“We are stunned by the statement made public today by AFA announcing an agreement to grant the rights that legally correspond to us, to another provider. We will do everything in our power to avoid it and to protect the rights of the fans who acquired the ARG fan tokens,” Chiliz responded in a statement to Crypto Noticias after the new AFA deal announcement.

Socios.com is a digital crypto wallet and trading platform that offers fan tokens to sports fans of some of the biggest football clubs worldwide. Under the terms of a deal between Socios.com and the AFA signed in July 2021, Socios.com acquired the naming rights of the top-flight football division in Argentina which was renamed to Torneo Socios.com.

Chiliz also acquired the right to launch the official token of Argentina football and subsequently launched the $ARG fan token on the Socios.com platform.  The AFA agreed to recognize the token as the “digital asset” that provides exclusive rights to its holders for rewards, voting rights and other promotions.

Prohibitory Injunction is Issued

In a corporate statement following the request for an injunction, Chiliz indicated its request was granted by Argentina’s National Commercial Tribunal, which ordered the AFA to “recognize the agreement signed with Socios.com, including the Fan Token.”

In their request, Chiliz also demanded that AFA safeguard the agreement signed with Socios.com by embracing the $ARG fan token and promoting it through the Argentina national football team. Chiliz also insisted the association “refrain from performing any action, carry out any proceedings, or apply any measure that would hamper the exercise of Socios’ exclusive rights.”

“We welcome this decision from an independent justice system, which recognizes 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,” the corporate response issued by Chiliz concluded.

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