The Class-Action Lawsuit Against Cristiano Ronaldo for Binance Promotion
A class-action lawsuit has been filed against Cristiano Ronaldo, accusing him of aiding in the sale of unregistered securities in collaboration with Binance. The lawsuit claims that Ronaldo’s promotion of non-fungible tokens (NFTs) on the platform led users to invest in his NFTs and engage with other Binance offerings, including what they allege are unregistered securities.
“Binance’s partnership with celebrities like Ronaldo was clearly designed to use the positive reputation associated with specific celebrities to convince consumers that Binance was a safe place to buy and sell cryptocurrency.”
The complaint emphasizes Ronaldo’s significant influence, with 850 million followers on social media platforms, which allegedly boosted Binance’s popularity by 500% following his promotion. It also points out that Ronaldo failed to disclose any compensation received for promoting cryptocurrencies, as required by the Securities and Exchange Commission (SEC) guidelines.
Binance’s Legal Issues
In addition to the lawsuit against Ronaldo, Binance and its founder, Changpeng Zhao, are facing their own legal issues. They have admitted guilt and agreed to a $4.3 billion settlement with the US for charges related to money laundering and operating an unregistered money-transmitting business.
Zhao has stepped down as CEO and may face up to 18 months in prison, potentially even up to 10 years according to legal experts. Binance has agreed to compliance monitoring by the Justice Department and Treasury for up to five years. The SEC has also filed a lawsuit against Binance, alleging the sale of unregistered securities and investigating potential misappropriation of customer funds.
Hot Take: The Fallout from Ronaldo’s Promotion
The class-action lawsuit against Cristiano Ronaldo highlights the risks associated with celebrity endorsements in the cryptocurrency industry. While Ronaldo’s partnership with Binance aimed to leverage his positive reputation, it has now led to legal troubles for both parties. The lawsuit alleges that Ronaldo’s promotion influenced users to invest in unregistered securities, damaging their finances.
Furthermore, Binance’s involvement in money laundering and the sale of unregistered securities has compounded their legal issues. This situation serves as a cautionary tale for celebrities and individuals considering endorsing or promoting cryptocurrency platforms without fully understanding the potential consequences.
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