Cristiano Ronaldo Sued for Promoting Binance, Unregistered Securities: A $1 Billion Legal Showdown
In a surprising turn of events, renowned soccer star Cristiano Ronaldo faces a proposed class-action lawsuit filed on November 27, 2023, in a United States district court in Florida. The plaintiffs allege suffering losses from Ronaldo’s promotion of the now-legally embroiled cryptocurrency exchange, Binance.
The lawsuit asserts that Ronaldo actively participated in the offer and sale of unregistered securities in collaboration with Binance. The legal action stems from Binance’s multi year partnership with Ronaldo in mid-2022, aiming to promote a series of the soccer star’s nonfungible tokens (NFTs). Intriguingly, at least three of Ronaldo’s NFT collections were directly tied to Binance, forming the crux of the lawsuit’s allegations.
Users who engaged with Ronaldo’s NFTs, as per the complaint, were more likely to utilize Binance for various purposes, including investing in what the plaintiffs claim are unregistered securities. This encompasses Binance’s native token, BNB (BNB), and its crypto yield programs. The lawsuit, seeking class-action status, alleges that Ronaldo, with his investment experience and vast resources, either knew or should have known about Binance’s purported sale of unregistered crypto securities.
The complaint also references guidance from the U.S. Securities and Exchange Commission (SEC), emphasizing the obligation for celebrities to disclose payments received for promoting cryptocurrencies. The lawsuit claims Ronaldo failed to fulfill this disclosure requirement. Consequently, the proposed class-action plaintiffs are seeking damages totaling a staggering $1 billion.
The legal ramifications extend beyond Ronaldo himself to Binance, one of the world’s largest cryptocurrency exchanges. The lawsuit poses a significant setback for both Ronaldo and Binance, alleging that Ronaldo’s promotions actively solicited or facilitated Binance in soliciting investments in unregistered securities. Ronaldo’s massive following, boasting 850 million across social media platforms, is emphasized in the complaint as a key factor contributing to Binance’s growing popularity.
The lawsuit points out that Ronaldo’s NFT sales were exceptionally successful in promoting the exchange, resulting in a notable 500% increase in searches for Binance in the week following the initial sale. The legal action underscores the potential influence and reach of celebrities in the cryptocurrency space and raises questions about the responsibility of influencers when promoting financial products and platforms.
This lawsuit adds to the string of legal issues Binance has faced in recent times. In October 2023, Binance agreed to pay $1.3 billion to settle charges by the U.S. Commodity Futures Trading Commission (CFTC) related to allowing Americans to trade derivatives without proper registration. Additionally, the company settled with the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) for $250 million, resolving allegations of violating sanctions by permitting individuals in sanctioned countries to use its platform.
In conclusion, Cristiano Ronaldo’s involvement in a $1 billion lawsuit for promoting Binance and allegedly soliciting investments in unregistered securities has significant implications for both the soccer star and the cryptocurrency exchange. The legal action highlights the growing scrutiny faced by celebrities endorsing cryptocurrency projects and the importance of adhering to regulatory guidelines. As the lawsuit unfolds, it adds another layer to Binance’s already complex legal landscape, raising questions about the future of influencer partnerships in the crypto industry.
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