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Ronaldo slapped with class-action lawsuit over Binance promo

source-logo  coininsider.com 29 November 2023 07:13, UTC

Footballer Cristiano Ronaldo is facing a potential class-action lawsuit for his promotion of Binance, which is now wrapped up in its own legal battles.

A court filing to a Florida District Court noted that Ronaldo has “promoted, assisted in, and/or actively participated in the offer and sale of unregistered securities in coordination with Binance.” The plaintiffs in the case note that Ronaldo’s promotion of the exchange has led to the loss of funds.

In the middle of 2022, Ronaldo teamed up with Binance to promote his collection of non-fungible tokens (NFTs). The plaintiffs against Ronaldo’s promotion state that they were more likely to use Binance and its services for other crypto-related purposes. The users claim that this led to investing in unregistered securities through Binance including its BNB and the cryptocurrency yield programmes.

“Ronaldo’s promotions solicited or assisted Binance in soliciting investments in unregistered securities by encouraging his millions of followers, fans, and supporters to invest with the Binance platform.”

Cooking something up with @binance https://t.co/FMAP5GAdxE

— Cristiano Ronaldo (@Cristiano) November 28, 2023

Ronaldo failed to disclose pertinent information

With his broad influence and fanbase, the footballer had been a major part of Binance’s increasing users. The complaint noted that his NFT sales were incredibly successful at endorsing the exchange. Search engine volumes for “Binance” had seen a 500% increase after launching his first collection through the exchange. While Ronaldo was not directly promoting Binance, the lawsuit claims that he should have known about Binance selling cryptocurrency securities if he didn’t already.

The United States Securities and Exchange Commission has warned celebrities that they need to state that they have received payment for promoting cryptocurrency and related assets. According to the lawsuit, Ronaldo failed to disclose this information.

Binance’s legal struggles

Binance and Changpeng Zhao are under legal fire from the Department of Justice. After a $4.3 billion settlement on money laundering charges, Zhao has stepped down as the CEO and is currently facing a potential 18 months in prison.