Cristiano Ronaldo is currently grappling with a proposed class-action lawsuit. Plaintiffs claim to have incurred losses stemming from his affiliation with the cryptocurrency exchange Binance, which is currently embroiled in legal troubles.
According to a filing submitted on November 27 in a Florida district court, Ronaldo faces legal allegations. Additionally, he is accused of actively participating in the promotion and sale of unregistered securities, collaborating with Binance.
Notably, in 2022, Binance commenced a multiyear partnership with Ronaldo to promote a series of nonfungible tokens (NFTs). Three of these NFTs were directly associated with the crypto exchange.
Furthermore, the lawsuit claims that registering for Ronaldo’s NFTs increased individuals’ likelihood of engaging in additional activities on Binance. This included investing in what is alleged to be unregistered securities, such as Binance’s cryptocurrency and its crypto yield programs.
Cristiano Ronaldo Sued for Boosting Binance and Unregistered Crypto Sales
The complaint asserts that Ronaldo, with his immense influence and 850 million social media followers, played a crucial role in boosting Binance’s popularity. Consequently, the NFT sales were purportedly highly successful, resulting in a 500% surge in searches for “Binance” the week following the initial sale.
However, the lawsuit claims Ronaldo should have known about Binance’s sale of unregistered crypto securities, given his experience and resources.
It refers to Securities and Exchange Commission guidance, highlighting that celebrities are advised to disclose payments received for promoting cryptocurrencies. This alleged omission by Ronaldo is a focal point of the legal claims.
The proposed class-action lawsuit has been filed by Michael Sizemore, Mikey Vongdara, and Gordon Lewis, seeking damages and coverage for legal fees.
Binance Faces Legal Turmoil: CEO Resigns, $4.3 Billion Settlement, and SEC Lawsuit
Concurrently, Binance and its founder Changpeng “CZ” Zhao are grappling with legal challenges. This includes pleading guilty to money laundering charges and operating an unregistered money-transmitting business. Incredibly, these issues have led to a substantial $4.3 billion settlement with the United States.
Moreover, Zhao has stepped down as CEO and faces potential imprisonment for up to 18 months, while Binance has agreed to undergo up to five years of compliance monitoring by the Justice Department and Treasury.
The SEC has also sued Binance, alleging the sale of unregistered securities and investigating potential misappropriation of customer funds.