Cristiano Ronaldo Faces $1 Billion Lawsuit Over Binance Promotion
An ongoing class action lawsuit in Florida is seeking damages of over $1 billion from soccer star Cristiano Ronaldo for his involvement in promoting the cryptocurrency exchange Binance. The lawsuit alleges that Binance operated illegally in the United States and sold unregistered securities. Ronaldo is accused of using his celebrity status to attract investors and drive traffic to the platform.
Alleged Violations by Binance
The lawsuit points out several alleged violations committed by Binance, including operating an unregistered exchange and clearing agency, failing to file suspicious activity reports, and lacking anti-money laundering controls. In November, Binance paid more than $4 billion in penalties related to these activities.
Ronaldo’s Involvement
The plaintiffs argue that Ronaldo financially benefited from promoting Binance and should have been aware of the potential illegality of his actions. They claim that Ronaldo’s advertisements reached over 100 million Binance users through TV and social media platforms. The lawsuit states that Ronaldo encouraged his followers to invest with Binance, potentially aiding the sale of unregistered securities.
Ronaldo’s NFT Collection
Last year, Ronaldo released his first-ever NFT collection called “CR7” in partnership with Binance. The collection featured animated digital statues depicting significant moments from Ronaldo’s career. Each NFT had a starting price ranging from $77 to $10,000.
Compensation for Victims
The plaintiffs’ attorneys believe that compensation is the only way for victims to seek justice. They argue that investors have lost more than $11 billion, leading some exchanges to go bankrupt. This lawsuit aims to help victims recover their losses from the promoters involved.
Liability of Celebrities in Crypto Promotions
The Securities and Exchange Commission (SEC) has highlighted the legal obligations of celebrities who promote crypto assets. The SEC charged NBA Hall of Famer Paul Pierce earlier this year, emphasizing the need for celebrities to disclose their compensation and be transparent with investors. Failure to do so can result in violations of federal securities laws.
Hot Take: Ronaldo’s Legal Battle Reflects Growing Scrutiny on Crypto Promotion
Cristiano Ronaldo’s involvement in a $1 billion lawsuit over his promotion of Binance highlights the increased scrutiny faced by celebrities who endorse cryptocurrencies. As regulators crack down on illegal activities within the crypto industry, celebrities are being held accountable for their roles in promoting potentially fraudulent platforms or unregistered securities. This case serves as a reminder that individuals with large followings have a responsibility to conduct due diligence before endorsing any investment opportunity, including cryptocurrencies. The outcome of this lawsuit could set a precedent for future legal actions against celebrities involved in crypto promotions.
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