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Cristiano Ronaldo Faces SEC Wrath in Lawsuit Over Binance Promotion

source-logo  cryptonewsland.com 29 November 2023 04:30, UTC
  • Soccer star Cristiano Ronaldo sued for promoting Binance and unregistered securities.
  • Ronaldo accused of encouraging Binance investments in unregistered securities.
  • Legal troubles persist as Binance founder pleads guilty to money laundering charges.

In the aftermath of the SEC’s rampage upon Binance and CZ, the entity has turned its gaze on all who worked with Binance it seems. Presently, soccer sensation Cristiano Ronaldo finds himself at the center of a proposed class-action lawsuit, accused of promoting Binance and its involvement in unregistered securities.

Cristiano Ronaldo sued for promoting #Binance, unregistered securities#crypto #cryptocurrencies #cryptonews https://t.co/D9gaO7s8ce

— Uncover 🇺🇦 (@UncoverIntl) November 29, 2023

The November 27 filing in a Florida District Court alleges Ronaldo actively participated in the sale of unregistered securities in collaboration with Binance. The lawsuit contends that Ronaldo’s promotion of Binance-tied NFTs led users to engage with the crypto exchange for various purposes, including investments in what the plaintiffs claim were unregistered securities like Binance’s BNB and its crypto yield programs.

With 850 million followers on social media, Ronaldo played a crucial role in boosting Binance’s popularity, resulting in a significant surge in searches for “Binance” following the NFT sales. The complaint suggests that Ronaldo’s promotion solicited investments in unregistered securities, arguing that he should have been aware of Binance’s practices due to his investment experience and resources.

The legal action cites Securities and Exchange Commission guidance, asserting that celebrities need to disclose payments received for promoting cryptocurrencies, which the complaint alleges Ronaldo failed to do. The proposed class action, led by plaintiffs Michael Sizemore, Mikey Vongdara, and Gordon Lewis, seeks damages and coverage for legal fees.

While Ronaldo faces legal scrutiny, Binance and its founder, Changpeng “CZ” Zhao, grapple with their own troubles, having pleaded guilty to money laundering charges and running an unregistered money-transmitting business.

Zhao stepped down as CEO, and Binance agreed to up to five years of Justice Department and Treasury compliance monitoring following a $4.3 billion settlement. The SEC has also sued Binance for selling unregistered securities, adding to the exchange’s legal challenges.