- November 30, 2023
- Posted by: [email protected]
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Renowned soccer star Cristiano Ronaldo is facing a proposed class-action lawsuit for his involvement in promoting the cryptocurrency exchange Binance. The legal action, filed on November 27 in a U.S. district court in Florida, alleges that Ronaldo played a role in the sale of unregistered securities in collaboration with Binance.
In mid-2022, Binance initiated a multiyear partnership with Ronaldo to promote a series of his non-fungible tokens (NFTs), several of which were associated with the Binance platform. The complaint asserts that individuals who purchased Ronaldo’s NFTs were more likely to engage with Binance for other purposes, potentially investing in what the plaintiffs claim are unregistered securities, including Binance’s BNB token and its crypto yield programs.
The lawsuit argues that Ronaldo’s endorsement significantly contributed to Binance’s popularity, leveraging his massive following of 850 million social media users. It alleges that Ronaldo’s promotions assisted Binance in soliciting investments in what the plaintiffs characterize as unregistered securities.
The plaintiffs contend that Ronaldo’s successful NFT sales notably boosted Binance’s visibility, leading to a 500% increase in searches for the exchange in the week following the initial sale. The lawsuit suggests that, given Ronaldo’s investment experience and substantial resources, he should have been aware of Binance’s sale of unregistered crypto securities and could have sought external advice.
Furthermore, the legal action references guidance from the U.S. Securities and Exchange Commission (SEC), emphasizing the obligation for celebrities to disclose payments received for promoting cryptocurrencies—an obligation that the complaint alleges Ronaldo failed to fulfill.
Michael Sizemore, Mikey Vongdara, and Gordon Lewis have filed a proposed class-action lawsuit seeking damages and funding to cover legal fees. As the legal proceedings unfold, Ronaldo’s involvement in endorsing Binance is scrutinized for its potential implications regarding the promotion of crypto assets and compliance with regulatory standards.
