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Cristiano Ronaldo Faces Lawsuit Over Binance NFTs Promotion

Soccer icon Cristiano Ronaldo is entangled in a legal tussle, accused of endorsing unregistered securities linked to Binance, a cryptocurrency exchange. The class-action lawsuit, initiated on November 27 in a Florida court, contends Ronaldo actively promoted Binance’s nonfungible tokens (NFTs), intertwined with unregistered securities.

In mid-2022, Ronaldo forged a multiyear partnership with Binance, aiming to boost his NFT collections. Notably, three collections directly tie back to Binance. Users acquiring Ronaldo’s NFTs allegedly ventured into Binance’s unregistered securities, including BNB and crypto yield programs.

A cryptic tweet hints at a new collaboration, despite the ongoing legal ordeal.

The lawsuit posits that Ronaldo’s endorsements facilitated Binance in enticing investments in these unregistered securities. Ronaldo’s vast social media reach, with 850 million followers, significantly fuelled Binance’s surge, evident in a 500% spike in searches post the NFTs’ initial sale.

Allegations underscore Ronaldo’s awareness, given his investment background, accusing him of nondisclosure of payments received. This omission clashes with Securities and Exchange Commission (SEC) guidelines, leaving Ronaldo facing claims of influencing users’ investment decisions.

The plaintiffs—Michael Sizemore, Mikey Vongdara, and Gordon Lewis—seek damages and legal fee coverage, asserting Ronaldo’s pivotal role in their Binance investment choices.

Simultaneously, Binance and its founder, Changpeng “CZ” Zhao, grapple with legal turmoil. CZ’s guilty plea to money laundering and operating an unregistered money-transmitting business resulted in a $4.3 billion settlement with the U.S. Consequently, Zhao stepped down as CEO, confronting a potential 18-month prison term. Binance committed to up to five years of compliance monitoring by the Justice Department and Treasury.

The SEC’s allegations of selling unregistered securities and investigating potential fund misappropriation further intensify Binance’s legal woes. Ronaldo’s case adds to the mounting scrutiny of celebrities’ involvement in cryptocurrency promotions and the associated legal obligations.

* Original content written by Coinlive. Coinbold is licensed to distribute this content by Coinlive.