Football icon Cristiano Ronaldo is entangled in a proposed class-action lawsuit, accused of promoting unregistered securities on the troubled crypto exchange Binance. The lawsuit, filed in a U.S. district court in Florida on Nov. 27, alleges that Ronaldo actively participated in the sale of unregistered securities in collaboration with Binance.
Ronaldo’s association with Binance began in mid-2022 when the exchange entered a multiyear partnership to promote the soccer star’s nonfungible tokens (NFTs). At least three of Ronaldo’s NFT collections were linked to Binance.
According to the complaint, users who engaged with Ronaldo’s NFTs were more likely to use Binance for other purposes, including investing in what the plaintiffs claim are unregistered securities such as Binance’s BNB and its crypto yield programs.
The lawsuit contends that Ronaldo’s promotions encouraged investments in unregistered securities by leveraging his massive social media following. With 850 million followers across social media, Ronaldo significantly contributed to Binance’s popularity, resulting in a 500% increase in searches for Binance the week following the initial NFT sale.
The plaintiffs argue that Ronaldo, due to his investment experience and vast resources, should have known about Binance’s alleged sale of unregistered crypto securities. The lawsuit also claims that Ronaldo failed to disclose payments received for promoting cryptocurrencies, violating U.S. Securities and Exchange Commission (SEC) guidance.
The class-action lawsuit seeks damages and legal fees and is brought by plaintiffs Michael Sizemore, Mikey Vongdara, and Gordon Lewis.
This legal action against Ronaldo comes at a time when Binance and its founder, Changpeng “CZ” Zhao, are facing their own legal challenges. Binance recently pleaded guilty and agreed to a $4.3 billion settlement with the U.S. government over Anti-Money Laundering law violations and running an unregistered money-transmitting business.
This information is not legal advice. Do your own research before making any decisions. Only invest what you can afford to lose and seek independent financial advice if needed. Understand the risks involved before purchasing any cryptoassets.