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Cristiano Ronaldo’s Partnership with Binance Results in a Lawsuit

source-logo  coinedition.com 29 November 2023 14:45, UTC

Portuguese footballer Cristiano Ronaldo has been sued for actively promoting and participating in the sale of the deemed unregistered securities of Binance. In a $1 billion proposed class action lawsuit filed on November 27, three investors, claiming to have suffered losses from Binance, accused Ronaldo of being partially responsible for their losses.

Reportedly, Ronaldo entered into a strategic partnership with Binance last year, promoting Binance’s NFT collections. The lawsuit alleged that Ronaldo’s fame and influence had driven Binance to reach remarkable heights, prompting his 850 million+ followers to invest in the exchange. The plaintiffs argued,

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.

The complaint also sheds light on the gigantic growth of Binance immediately after Ronaldo’s promotion. For instance, there has been more than a 500% increase in individuals who search Google for the keyword “Binance” following Ronaldo’s involvement in the NFT sale.

The accusers, namely, Michael Sizemore, Mikey Vongdara, and Gordon Lewis, argued that Ronaldo, who boasts “investment experience and vast resources to obtain outside advisers,” should have known about the platform’s sale of unregistered securities. These investors ask for financial compensation for the losses and legal expenses via the lawsuit.

The allegations came in light of the recent incidents involving Binance and its former CEO, Changpeng Zhao, that shook the whole crypto community. The platform had been under scrutiny by U.S. regulators for the unregistered sale of securities. In a $4.3 billion settlement, Zhao pleaded guilty to breaching anti-money laundering rules and resigned from his position as the CEO of Binance.

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