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Cristiano Ronaldo Faces $1B Lawsuit over Binance Ads

source-logo  financemagnates.com 29 November 2023 18:45, UTC

Soccer star Cristiano Ronaldo is entangled in a class action lawsuit amounting to over $1 billion in the United States, involving his association with Binance. Plaintiffs have asserted that Ronaldo endorsed the crypto exchange leading to financial losses.

According to a report by BBC, the lawsuit contest that Ronaldo's promotional activities influenced individuals to engage in investments that eventually turned out to be unprofitable. The plaintiffs in this matter are seeking compensation surpassing $1 billion.

The "CR7" NFT Collaboration

Ronaldo's collaboration with Binance gained attention in November 2022 when the exchange unveiled its inaugural "CR7" collection of non-fungible tokens (NFTs). This partnership aimed to reward Ronaldo's fans for their unwavering support, using NFTs which are digital assets representing ownership of online content.

The NFT venture was marketed as a game-changer in the NFT space. Ronaldo expressed intentions to revolutionize football through this collaboration. This legal dispute has raised pertinent questions about the responsibilities associated with celebrity endorsements in the fast-growing cryptocurrency landscape.

Myself and #Binance are giving away 50,000 free surprises!

And one lucky winner will win the golden ticket - a trip to train with me in person.

Head over to #Binance to claim your free CR7 ForeverZone Box

Get involvedhttps://t.co/1cl21YjQeJ pic.twitter.com/DVlzWhbEMH

— Cristiano Ronaldo (@Cristiano) October 11, 2023

Meanwhile, the Former CEO of Binance, Changpeng Zhao (CZ), is grappling with a monumental legal battle against the US Department of Justice (DOJ) after admitting guilt in violating anti-money laundering laws. Earlier, the DOJ requested to restrict CZ’s travel to the UAE. The request was was granted by the federal court.

Binance and CZ under Fire

While the DOJ did not pushed for immediate incarceration, they oppose CZ's departure from the US, citing concerns about potential flight risk due to the severity of sentencing. CZ is facing a potential sentence ranging between 18 months to 10 years. He has resigned as Binance's CEO in a settlement with the DOJ, which include a bond agreement of $175 million.

Simultaneously, Binance faces substantial penalties totaling $4.3 billion after pleading guilty to various charges. The settlement with the DOJ include a deal to exit the US market and appoint a new CEO. The aftermath of the legal tussle witnessed a significant outflow of Bitcoin reserves from Binance.

The crypto exchange is facing regulatory scrutiny for various violations, including lapses in the Bank Secrecy Act and anti-money-laundering regulations. Binance has appointed Richard Teng as the new CEO as part of its commitment to comply with the US standards.