In the midst of the legal storm encircling the prominent cryptocurrency exchange Binance, global soccer icon Cristiano Ronaldo, currently donning the jersey for the Saudi Arabian football club Al Nassr, has become embroiled in a proposed class-action lawsuit.
According to a filing submitted to a United States district court in Florida on November 27th, plaintiffs allege financial losses due to Ronaldo’s association with promoting Binance, which has been under legal scrutiny. The lawsuit accuses Ronaldo of playing a role in endorsing and facilitating the sale of unregistered securities in collaboration with Binance.
The link between Ronaldo and Binance dates back to a multiyear partnership initiated in mid-2022. The partnership aimed to promote Ronaldo’s series of nonfungible tokens (NFTs), at least three of which were associated with Binance.
The lawsuit contends that individuals who engaged with Ronaldo’s NFTs were more likely to use Binance for various purposes, including investing in what the plaintiffs claim are unregistered securities, such as Binance’s BNB tokens and its crypto yield programs.
Highlighting Ronaldo’s massive influence, the complaint emphasizes his pivotal role in enhancing Binance’s popularity, citing his staggering social media following of 850 million across platforms. It claims that Ronaldo’s NFT sales significantly boosted the exchange’s visibility, allegedly resulting in a 500% surge in searches for Binance in the week following the initial sale.
The lawsuit implies that Ronaldo, given his investment experience and substantial resources, should have been aware of Binance’s alleged sale of unregistered crypto securities. It references U.S. Securities and Exchange Commission (SEC) guidance cautioning celebrities about disclosing payments received for promoting cryptocurrencies—a step the complaint alleges Ronaldo failed to take.
The plaintiffs driving this class-action lawsuit seek damages and coverage for legal expenses stemming from their claimed losses.
In parallel, Binance and its founder, Changpeng Zhao (CZ), grapple with their own legal challenges. Following a guilty plea and a $4.3 billion settlement for breaching Anti-Money Laundering laws and operating an unregistered money-transmitting business, Zhao has stepped down as CEO.
Binance faces up to five years of compliance monitoring by the U.S. Department of Justice and the Department of the Treasury.
November 2023, CryptoniteUae
