Cristiano Ronaldo is facing a proposed class-action lawsuit wherein plaintiffs allege financial losses due to his association with the legally troubled crypto exchange, Binance. Filed on November 27 in a United States district court in Florida, the lawsuit asserts that Ronaldo actively contributed to the promotion and sale of unregistered securities in collaboration with Binance.
Ronaldo entered a multiyear partnership with Binance in mid-2022 to endorse a series of nonfungible tokens (NFTs), three of which were directly linked to the crypto exchange. According to the complaint, individuals who acquired Ronaldo's NFTs were more inclined to utilize Binance for various purposes, including investments in what they claim are unregistered securities such as Binance's BNB and its crypto yield programs.
The lawsuit underscores Ronaldo's significant role in enhancing Binance's popularity, attributing the exchange's heightened visibility to his massive social media following of 850 million. The complaint contends that Ronaldo's NFT sales substantially boosted Binance's profile, leading to a 500% surge in searches for the exchange in the week following the initial sale.
The legal action alleges that Ronaldo, possessing investment experience and ample resources, either knew or should have known about Binance's purported sale of unregistered crypto securities. The complaint cites guidance from the U.S. Securities and Exchange Commission (SEC), emphasizing the need for celebrities to disclose payments received for promoting cryptocurrencies, an obligation Ronaldo is accused of neglecting.
The plaintiffs behind the class-action lawsuit—Michael Sizemore, Mikey Vongdara, and Gordon Lewis—are seeking damages and financial support for legal expenses. Concurrently, Binance and its founder, Changpeng "CZ" Zhao, are contending with their legal challenges, having pleaded guilty to Anti-Money Laundering violations and operating an unregistered money-transmitting business, resulting in a $4.3 billion settlement with the U.S. government. Zhao, stepping down as CEO, faces potential imprisonment for up to 18 months, while Binance has agreed to undergo up to five years of compliance monitoring by the U.S. Department of Justice and the Department of the Treasury. Additionally, the SEC has initiated legal action against Binance, including allegations of selling unregistered securities and investigating potential misappropriation of customer funds.
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