Superstar soccer player Cristiano Ronaldo is the target of a class-action lawsuit that claims investor damages resulted from his support of cryptocurrency exchange Binance.
Ronaldo signed a multi-year deal with Binance to promote his non-fungible token (NFT) collections. Fans and collectors took an immediate interest in the collection, which included unique digital artworks and experiences.
Cristiano Ronaldo, Binance Accused Of Unregistered Securities Promotion
Cristiano Ronaldo was accused of coordinating with Binance to “promote, assist, and/or actively participate in the offer and sale of unregistered securities” in a filing made on November 27 to a Florida District Court.
According to the lawsuit, this collaboration and the enormous influence and reach of Cristiano Ronaldo lured unwary investors to Binance, where they were tricked into making unregistered securities investments.
Based on the complaint, people who registered for the Cristiano Ronaldo NFTs were more likely to use Binance for other reasons, such as investing in what they said were unregistered securities, such as the BNB coin and its cryptocurrency yield schemes.
Cooking something up with @binance https://t.co/FMAP5GAdxE
— Cristiano Ronaldo (@Cristiano) November 28, 2023
Binance posted a video of Ronaldo striking a stance on a t-shirt with the number 7 and his name, as well as the Binance name on the sleeve.
The video has strengthened Ronaldo’s association with the cryptocurrency sector and given rise to speculation that he would sign on as a brand ambassador for Binance.
The legal actions transpire within a month and a week, respectively, following the conviction of FTX founder Sam Bankman-Fried on seven fraud-related counts in Manhattan federal court, and the guilty plea of Binance founder Changpeng “CZ” Zhao for multiple federal statute violations, including the Bank Secrecy Act.
Total crypto market cap at $1.402 trillion on the daily chart: TradingView.com
Lawsuit Claims Failure To Disclose Binance Dealings, Crypto Promo Earnings
The lawsuit claims that because Ronaldo has “huge resources to hire outside advisers” and “investment knowledge,” he should have known or should have known “about Binance offering unregistered crypto assets.”
The complaint alleges that Ronaldo failed to disclose funds he received for promoting cryptocurrency.
The document that Ronaldo is facing says:
“Evidence now reveals that Binance’s fraud was only able to reach such heights through the offer and sale of unregistered securities, with the willing help and assistance of some of the wealthiest, powerful and recognized organizations and celebrities across the globe – just like Defendant Ronaldo.”
MLB, Formula 1, Mercedes Racing Team Also Targeted
Meanwhile, MLB, Formula 1, and its Mercedes racing team are now also the targets of litigation aiming to recover $11 billion in FTX damages.
FTX officials, celebrities, and athletes who endorsed the exchange prior to its collapse are the targets of class-action lawsuits filed by investors who lost money on the fraudulent cryptocurrency exchange, adding the sports organizations to the list.
The cases are the most recent in a series of concerted legal actions that have requested damages for pushing FTX from a number of celebrities, including Shohei Ohtani, Shaquille O’Neal, Trevor Lawrence, Stephen Curry, and Tom Brady, among others.
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