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Football star Cristiano Ronaldo is now facing the prospect of a class-action lawsuit over his involvement in promoting Binance, a cryptocurrency exchange currently embroiled in its own legal battles. A court filing in a Florida District Court alleges that Ronaldo actively participated in the sale of unregistered securities in coordination with Binance, resulting in financial losses for investors. In mid-2022, Ronaldo collaborated with Binance to promote his collection of non-fungible tokens (NFTs). Plaintiffs argue that Ronaldo's endorsement influenced them to use Binance for other crypto-related activities, leading to investments in unregistered securities such as Binance Coin (BNB) and cryptocurrency yield programs.
Ronaldo's NFT Success Allegedly Boosts Binance, Ignites Lawsuit Scrutiny
[embed]https://twitter.com/Cristiano/status/1729477584977600615[/embed] Ronaldo's widespread influence played a significant role in increasing Binance's user base. The lawsuit contends that his successful NFT sales effectively endorsed the exchange, causing a substantial uptick in search engine volumes for "Binance." Despite not directly promoting Binance, the lawsuit claims that Ronaldo should have been aware of the platform selling cryptocurrency securities. Celebrities endorsing cryptocurrencies have been warned by the United States Securities and Exchange Commission (SEC) to disclose payments received for promotions. The lawsuit alleges that Ronaldo failed to make such disclosures.
Binance, CEO Zhao Face DOJ Challenges, Sparking Celebrity Endorsement Concerns
Meanwhile, Binance and its CEO, Changpeng Zhao, are facing legal challenges from the Department of Justice. Following a $4.3 billion settlement on money laundering charges, Zhao has resigned as CEO and is confronting the possibility of an 18-month prison sentence. As legal troubles mount for both Ronaldo and Binance, the lawsuit emphasizes the need for transparency in celebrity endorsements and raises questions about the promotion of cryptocurrency platforms.