Soccer Superstar Cristiano Ronaldo Faces Lawsuit for Promoting Binance
Soccer superstar Cristiano Ronaldo is the subject of a proposed class-action lawsuit for his involvement in promoting crypto exchange Binance. The lawsuit was filed in a US district court in Florida and alleges that Ronaldo played a role in the sale of unregistered securities in connection with Binance.
Ronaldo’s Partnership with Binance
In 2022, Binance entered into a multiyear partnership with Ronaldo to promote his own nonfungible tokens (NFTs), some of which were tied to Binance. The plaintiffs argue that those who purchased Ronaldo’s NFTs were more likely to engage with Binance for other purposes, including investing in what they claim are unregistered securities.
Ronaldo’s Influence and Alleged Negligence
The lawsuit claims that Ronaldo’s endorsement of Binance and his large social media following significantly contributed to the exchange’s popularity. The plaintiffs argue that Ronaldo should have been aware of Binance’s sale of unregistered crypto securities, given his investment experience and resources. They also reference guidance from the US Securities and Exchange Commission (SEC) regarding the disclosure of payments received for promoting cryptocurrencies, which they claim Ronaldo failed to fulfill.
Binance Continues to Face Legal Challenges
Despite a recent settlement with the US Department of Justice (DOJ) over Anti-Money Laundering violations, Binance and its founder Changpeng “CZ” Zhao are still facing legal action. The SEC is investigating the exchange for alleged backdoor control over customer assets. In June, the SEC initiated legal action against both Binance and its American counterpart, Binance.US, for their involvement in selling unregistered securities.
Hot Take: Cristiano Ronaldo Faces Lawsuit for Promoting Binance
Soccer superstar Cristiano Ronaldo is facing a proposed class-action lawsuit for his role in promoting crypto exchange Binance. The lawsuit alleges that Ronaldo played a part in the sale of unregistered securities tied to Binance. The plaintiffs argue that Ronaldo’s endorsement and massive social media following significantly contributed to the exchange’s popularity. Despite a recent settlement with the DOJ, Binance continues to face legal challenges, including an ongoing investigation by the SEC. This lawsuit highlights the potential legal risks for celebrities who promote cryptocurrencies without proper disclosure and due diligence.
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