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Proposed Class-Action Claims Ronaldo Promoted Unregistered Securities on Binance
Pro-soccer star Cristiano Ronaldo is facing a proposed class-action lawsuit alleging that he actively participated in promoting unregistered securities on Binance. The suit claims that Ronaldo's NFT promotions, tied to Binance, encouraged investments in unregistered securities, including Binance's BNB and crypto yield programs.
Ronaldo's Influence and Binance's Legal Troubles
Cooking something up with @binance https://t.co/FMAP5GAdxE
— Cristiano Ronaldo (@Cristiano) November 28, 2023
The lawsuit highlights Ronaldo's substantial influence, with 850 million social media followers, and his role in promoting Binance. The legal action comes amid Binance and its founder Changpeng "CZ" Zhao facing their own legal challenges, including a $4.3 billion settlement for Anti-Money Laundering violations and running an unregistered money-transmitting business.
Allegations of Lack of Disclosure and SEC Guidance
Plaintiffs claim Ronaldo failed to disclose payments for promoting cryptocurrencies, violating SEC guidance. The suit asserts that Ronaldo, with his investment experience, should have known about Binance's sale of unregistered crypto securities. The proposed class-action seeks damages and legal fees.
Binance's Legal Woes
As Binance and CZ plead guilty and face legal consequences, the SEC has sued the exchange, alleging the sale of unregistered securities and investigating potential misappropriation of customer funds. Ronaldo's involvement adds to the legal challenges surrounding Binance.