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Cristiano Ronaldo Faces Legal Heat Over Binance Endorsement

source-logo  coinspress.com 29 November 2023 10:00, UTC

In a recent legal development, football superstar Cristiano Ronaldo is embroiled in a lawsuit filed in a Florida District Court on November 27.

The lawsuit stems from his association with Binance, the largest cryptocurrency exchange by trading volume. Three plaintiffs allege financial losses directly tied to Ronaldo’s endorsement of the platform. Their core contention revolves around Binance’s alleged lack of robust anti-money laundering protocols.

The lawsuit asserts Ronaldo’s active involvement in promoting and facilitating the sale of unregistered securities in conjunction with Binance.

Ronaldo had inked a multi-year deal with the exchange in 2022, primarily aimed at promoting his unique collection of NFTs (Non-Fungible Tokens). Allegedly, individuals engaging with this NFT collection were more inclined to use the platform for purchasing unregistered securities like the BNB token and the exchange’s yield programs.

The legal document claims that Ronaldo’s endorsements acted as catalysts, encouraging Binance to solicit investments in unregistered securities by leveraging his extensive fan base and supporters.

READ MORE: Cryptocurrency Disclosure Mandate Hits Spain

According to the lawsuit, Ronaldo either knew or should have been aware of Binance’s involvement in selling unregistered crypto securities. Additionally, it suggests that given Ronaldo’s financial expertise and ample resources, seeking external counsel could have been a plausible option.

The lawsuit also references the Securities and Exchange Commission’s caution to celebrities about disclosing payments received for endorsing cryptocurrencies, alleging that Ronaldo failed to disclose payments from Binance.

This legal action against Ronaldo adds another layer to the ongoing saga surrounding Binance. Changpeng Zhao (CZ), the CEO of the platform, recently admitted guilt in money-laundering charges and agreed to step down from his leadership role within the company.