key takeaways :
- Cristiano Ronaldo faces a class-action lawsuit as plaintiffs claim financial losses due to his endorsement of Binance.
- The plaintiffs aim to secure damages surpassing $1 billion (£790 million).
In a startling turn of events, football icon Cristiano Ronaldo finds himself at the center of a proposed class-action lawsuit filed in the United States. The legal action stems from allegations that Ronaldo’s promotion of the embattled cryptocurrency exchange Binance led to financial losses for investors, as reported by various sources.
According to court documents filed in the US district court, Ronaldo is accused of actively participating in the sale of unregistered securities in conjunction with Binance. Plaintiffs Michael Sizemore, Mikey Vongdara, and Gordon Lewis claim that Ronaldo’s endorsement prompted them to make investments that ultimately resulted in losses when US authorities initiated an investigation into Binance for alleged tax evasion.
Ronaldo’s association with Binance began in 2022 when he signed a deal to promote NFTs (Non-Fungible Tokens) showcasing highlights from his illustrious career. Exclusive to the Binance NFT marketplace, these collections were met with mixed reviews, with some fans criticizing them as desperate. Recently, Binance agreed to a $4 billion settlement in a case linking the platform to terrorist financing.
The plaintiffs are seeking damages exceeding $1 billion (£790 million), asserting that influencers like Ronaldo played a pivotal role in Binance’s ascent by hyping securities in exchange for substantial payouts.
The lawsuit alleges that Ronaldo’s solicitation of investments contributed to a surge in Binance’s influence. The plaintiffs argue that Ronaldo, with his investment experience and abundant resources, should have been aware of Binance’s alleged sale of unregistered crypto securities.
Furthermore, the complaint references the US Securities and Exchange Commission’s (SEC) warning to celebrities about the necessity of disclosing payments received for promoting investment in securities.
The lawsuit contends that Ronaldo disregarded this guidance. According to the SEC, assets like NFTs can be considered securities, requiring adherence to US law by celebrity endorsers.
The plaintiffs are seeking compensatory damages, restitution, disgorgement of revenues, legal fees, and statutory damages. Meanwhile, Binance and its founder, Changpeng “CZ” Zhao, are grappling with their own legal challenges.
The company recently pleaded guilty and agreed to a $4.3 billion settlement with the US government for violating Anti-Money Laundering laws and operating an unregistered money-transmitting business.
Ronaldo’s influential presence significantly contributed to Binance’s popularity, as evidenced by the exchange’s recent video featuring the football star hinting at a possible collaboration, amassing an impressive 23.7 million views. As legal proceedings unfold, the football legend’s financial ties with Binance face intense scrutiny, raising questions about the responsibilities of celebrities endorsing cryptocurrency platforms.
