Superstar Cristiano Ronaldo Faces Class-Action Lawsuit for Promoting Binance
Cristiano Ronaldo, the famous soccer player, is at the center of a class-action lawsuit that alleges investor damages resulted from his endorsement of cryptocurrency exchange Binance. Ronaldo signed a multi-year deal with Binance to promote his non-fungible token (NFT) collections, which garnered significant interest from fans and collectors.
Cristiano Ronaldo Accused of Unregistered Securities Promotion
Ronaldo has been accused of colluding with Binance to promote unregistered securities. The lawsuit filed on November 27 claims that Ronaldo’s association with Binance enticed unsuspecting investors to make unregistered securities investments on the platform. The complaint suggests that those who registered for Ronaldo’s NFTs were more likely to engage in other activities on Binance, including investing in unregistered securities such as the BNB coin and its cryptocurrency yield schemes.
Ronaldo’s Link to Cryptocurrency Sector Strengthened
Binance posted a video featuring Ronaldo wearing a t-shirt with his name and the number 7, alongside the Binance name on the sleeve. This video further solidified Ronaldo’s connection to the cryptocurrency sector and sparked speculation about him becoming a brand ambassador for Binance.
Lawsuit Alleges Failure to Disclose Binance Dealings and Earnings
The lawsuit claims that Ronaldo, given his resources and investment knowledge, should have been aware of Binance’s offering of unregistered crypto assets. It also accuses Ronaldo of failing to disclose the funds he received for promoting cryptocurrency. The document highlights how organizations and celebrities like Ronaldo played a role in enabling Binance’s fraudulent activities.
MLB, Formula 1, Mercedes Racing Team Also Sued
In addition to Ronaldo, MLB, Formula 1, and its Mercedes racing team are now facing litigation seeking $11 billion in damages related to their promotion of FTX cryptocurrency. Celebrities and athletes who endorsed FTX prior to its collapse have become targets of class-action lawsuits filed by investors seeking compensation for their losses. This includes famous names like Shohei Ohtani, Shaquille O’Neal, Trevor Lawrence, Stephen Curry, and Tom Brady.
Hot Take: Ronaldo’s Legal Troubles Highlight the Risks of Celebrity Endorsements
The lawsuit against Cristiano Ronaldo serves as a reminder of the potential risks associated with celebrity endorsements in the cryptocurrency industry. As high-profile figures lend their names and influence to crypto projects, they may unknowingly expose their followers and fans to investment scams or unregistered securities. This case underscores the importance of due diligence and transparency in both the celebrities’ endorsement deals and the platforms they promote. It also highlights the need for stricter regulations to protect investors from fraudulent activities in the crypto space.
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