Cristiano Ronaldo Faces Staggering $1 Billion Lawsuit Over Binance Endorsement
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Cristiano Ronaldo, a football legend, is entangled in a massive $1 billion class-action lawsuit stemming from his affiliation with the cryptocurrency exchange Binance. The action, filed in the United States District Court for the Southern District of Florida in Miami, claims that Ronaldo’s work with Binance for the CR7 range of non-fungible tokens (NFTs) caused considerable losses and damages. Ronaldo’s initials & shirt number were emblazoned on these digital tokens, which were issued in November 2022. Within a year, their value had dropped from $77 (£60.76) to a meagre $1 (£0.79). The claims ascribe the massive losses to Ronaldo’s engagement, claiming that it drove loss-making investments, totalling more than $1 billion in damages.
JUST IN: Cristiano Ronaldo sued for promoting #Binance pic.twitter.com/pMfqwrH1os
— Watcher.Guru (@WatcherGuru) November 29, 2023
According to the lawsuit, Ronaldo not only promoted but also actively took part in offering and selling unregistered securities in collaboration with Binance. It also claims a huge rise in searches for the crypto exchange after the token release, which it attributes to Ronaldo’s sponsorship. The chair of the United States Securities and Exchange Commission (SEC), Gary Gensler, has previously emphasised the importance of public disclosure by celebrities advocating investment possibilities, notably in crypto-asset securities. He urged investors to do their homework before investing, emphasising the significance of understanding the motivations behind such endorsements.
A $1 billion Lawsuit Is Being Filed Against Cristiano Ronaldo For Promoting Cryptocurrency Exchange Binance
Cristiano Ronaldo, the highest-paid athlete globally, is confronted with a class action lawsuit from Binance customers who are pursuing $1 billion in damages. This is in relation to his endorsement of the cryptocurrency exchange, which recently agreed to pay a $4 billion settlement for violating the Bank Secrecy Act. Ronaldo began working with Binance in 2022, making NFT collections and posting to his 849 million fans on social media. The plaintiffs allege that Ronaldo played a role in the sale of unregistered investments with Binance and assert that, given his expertise in investments and substantial resources to seek advice, he should have been aware of potential concerns related to Binance trading unregistered crypto securities. The lawsuit claims that he may have been aiding and abetting Binance’s fraud and conversion. Specific emphasis is placed on Ronaldo’s involvement in “social media promotions, NFT collection, and additional advertising activities” with Binance. Despite the legal challenges, Ronaldo appears to still be engaged with the cryptocurrency exchange, tweeting on Tuesday night that he was “cooking something up with @binance.”
Cooking something up with @binance https://t.co/FMAP5GAdxE
— Cristiano Ronaldo (@Cristiano) November 28, 2023Advertisement
After reaching an agreement with the federal authorities on November 21, Binance, the world’s largest cryptocurrency exchange, was compelled to pay more than $4 billion in penalties and restitution. “The message here must be clear: employing new technology for the purpose of flouting the law does not render you a disruptor, instead it renders you a criminal,” said Attorney General Merrick Garland. The settlement also required Binance founder Changpeng Zhao, also known as CZ, to resign as CEO and pay a $53 million punishment. The case was brought against Ronaldo, one of the company’s most prominent ambassadors, less than a week after the settlement was disclosed. Ronaldo is hardly the first celebrity who has run into legal trouble for advocating bitcoin initiatives. Kim Kardashian was fined $1.26 million by the SEC in October 2022 for publishing a paid Instagram post promoting EthereumMax, a coin that has since been widely regarded as a pump-and-dump scheme. In March 2023, FTX, the exchange founded by convicted fraudster Sam Bankman-Fried, was sued by numerous celebrity spokespeople, including Tom Brady, Larry David, and Steph Curry.
