Cristiano Ronaldo Sued for Promoting Binance
Cristiano Ronaldo is facing a lawsuit for promoting cryptocurrency firm Binance. The suit claims that Binance sold unregistered securities, and the plaintiffs argue that they suffered losses as a result of Ronaldo’s promotion. Let’s dive into the details of this news.
Ronaldo’s Partnership with Binance
Binance, like many other crypto companies, has partnered with A-list athletes such as Cristiano Ronaldo. Ronaldo became a Binance ambassador in 2022 and participated in various campaigns, including the launch of his own NFT series. However, he is now being sued for his involvement in these promotion activities.
The lawsuit was filed in a United States district court in Florida. It alleges that Ronaldo’s promotions encouraged investments in unregistered securities on the Binance platform.
Details of the Lawsuit
The lawsuit claims that some users who purchased Ronaldo’s NFTs were more likely to use Binance for other purposes, including investing in alleged unregistered securities. The plaintiffs argue that Ronaldo should have been aware of Binance’s sale of unregistered crypto securities due to his investment experience and resources.
The complaint emphasizes Ronaldo’s influence and reach, citing his 850 million social media followers as a significant factor in boosting Binance’s popularity. The plaintiffs also highlight the success of Ronaldo’s NFT sales in driving traffic to the exchange.
Furthermore, the complaint alleges that Ronaldo failed to disclose the money he received for promoting cryptocurrencies, despite previous instructions from the SEC regarding influencers’ disclosure obligations.
Celebrity Lawsuits and Responsibility
This case sheds light on the responsibility and potential liability faced by influencers and celebrities when promoting assets like cryptocurrencies. Ronaldo is not the only celebrity to have been sued for endorsing crypto platforms. Others, including Shaquille O’Neal, Tom Brady, Floyd Mayweather, and Kim Kardashian, have faced similar lawsuits.
Last year, Kim Kardashian settled with the SEC for $1.26 million and agreed not to promote cryptocurrency for three years after failing to disclose a payment she received for promoting EthereumMax on Instagram.
Hot Take: The Risks of Promoting Cryptocurrencies
The lawsuit against Cristiano Ronaldo for promoting Binance highlights the risks associated with celebrity endorsements of cryptocurrencies. Influencers and celebrities have a responsibility to ensure that the platforms they promote comply with regulations and disclose any financial incentives they receive. Failure to do so can lead to legal consequences and reputational damage. This case serves as a reminder that both influencers and investors need to exercise caution when engaging with cryptocurrency promotions.
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