In a surprising turn of events, renowned pro-soccer star Cristiano Ronaldo finds himself entangled in a proposed class-action lawsuit filed on November 27th in a United States district court in Florida. The suit alleges that Ronaldo played a pivotal role in the promotion of the now-legally embroiled cryptocurrency exchange Binance, accusing him of being actively involved in the sale of unregistered securities.
The legal action revolves around a multiyear partnership between Ronaldo and Binance initiated in mid-2022, wherein the soccer star promoted his own nonfungible tokens (NFTs), with three collections notably linked to Binance. The complaint contends that users who engaged with Ronaldo’s NFTs were more inclined to use Binance for other purposes, including investing in what the plaintiffs claim are unregistered securities, such as Binance’s BNB and its cryptocurrency yield programs.
Ronaldo’s immense popularity, boasting 850 million followers across social media, is highlighted in the complaint as a key factor in Binance’s increased visibility and success. The lawsuit asserts that Ronaldo’s promotion significantly contributed to a 500% surge in searches for Binance in the week following the NFT sales.
The legal action further claims that Ronaldo, given his investment experience and vast resources, should have been aware of Binance’s alleged sale of unregistered crypto securities. It references U.S. Securities and Exchange Commission (SEC) guidance, suggesting that celebrities must disclose payments received for promoting cryptocurrencies, a requirement the complaint asserts Ronaldo did not fulfill.
The proposed class-action lawsuit is spearheaded by plaintiffs Michael Sizemore, Mikey Vongdara, and Gordon Lewis, all seeking damages and funds to cover legal fees.
Notably, Binance and its founder, Changpeng “CZ” Zhao, are grappling with their own legal challenges. Recently, they pleaded guilty and agreed to a $4.3 billion settlement with the U.S. government for Anti-Money Laundering violations and running an unregistered money-transmitting business. Zhao has stepped down as CEO, facing potential imprisonment, while Binance is subject to up to five years of compliance monitoring by the U.S. Department of Justice and the Department of the Treasury. Additionally, the SEC has filed a lawsuit against Binance, including allegations of selling unregistered securities and an ongoing investigation into the potential misappropriation of customer funds.
