Renowned soccer star Cristiano Ronaldo is now entangled in a proposed class-action lawsuit, as plaintiffs allege losses stemming from his association with the legally embroiled crypto exchange, Binance.
A filing dated November 27 to a United States district court in Florida contends that Ronaldo “promoted, assisted in, and/or actively participated in the offer and sale of unregistered securities in coordination with Binance.”
The legal dispute stems from Binance’s multiyear partnership with Ronaldo in mid-2022, where the soccer star endorsed a series of nonfungible tokens (NFTs), at least three of which were linked to the controversial crypto exchange.
According to the complaint, users who engaged with Ronaldo’s NFTs were more likely to utilize Binance for various purposes, including investing in what the plaintiffs claim are unregistered securities, such as Binance’s BNB and its crypto yield programs.
The lawsuit underscores Ronaldo’s significant role in boosting Binance’s popularity, given his massive influence and social media reach of 850 million followers. The NFT sales associated with Ronaldo purportedly saw a remarkable success, triggering a 500% surge in searches for Binance in the week following the initial sale.
The legal action contends that Ronaldo, with his investment experience and abundant resources, should have been aware of Binance’s alleged sale of unregistered crypto securities. It cites U.S. Securities and Exchange Commission (SEC) guidance emphasizing the need for celebrities to disclose payments received for promoting cryptocurrencies, which the complaint argues Ronaldo failed to do.
The class-action lawsuit is filed by plaintiffs Michael Sizemore, Mikey Vongdara, and Gordon Lewis, seeking damages and coverage for legal fees.
Meanwhile, Binance and its founder Changpeng “CZ” Zhao are grappling with their own legal challenges, having pleaded guilty and agreed to a $4.3 billion settlement with the U.S. government for violations of Anti-Money Laundering laws and operating an unregistered money-transmitting business.
As part of these developments, Zhao has stepped down as CEO and faces a potential 18-month prison term, while Binance is subject to up to five years of compliance monitoring by the U.S. Department of Justice and the Department of the Treasury. Simultaneously, the SEC has filed a lawsuit against Binance, alleging, among other charges, the sale of unregistered securities and an ongoing investigation into potential misappropriation of customer funds by the exchange.
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