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Soccer sensation Cristiano Ronaldo faces a legal battle following allegations of promoting unregistered securities via his affiliation with Binance, a cryptocurrency exchange. The lawsuit, filed on November 27 in a Florida district court, contends that Ronaldo’s association with Binance led to investments in unregistered securities.
Cristiano Ronaldo Partnership and Allegations With Binance
In mid-2022, Binance initiated a multiyear collaboration with Ronaldo, involving the promotion of his nonfungible tokens (NFTs), with at least three collections linked to the crypto exchange. The lawsuit claims that users engaging with Ronaldo’s NFTs were more inclined to invest in what they deem as unregistered securities through Binance, including Binance’s BNB and its crypto yield programs.
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Alleged Solicitation of Investments
The complaint asserts that Ronaldo’s endorsements encouraged millions of his followers to invest with Binance, alleging a connection between his NFT sales and a substantial surge in Binance searches—a reported 500% increase during the week following the initial sale. The plaintiffs argue that Ronaldo, given his extensive reach and influence with over 850 million social media followers, significantly contributed to Binance’s popularity.
Lack of Disclosure and Legal Ramifications
The lawsuit highlights Ronaldo’s purported failure to disclose payments received for promoting cryptocurrencies, contrary to U.S. Securities and Exchange Commission (SEC) guidelines cautioning celebrities about such disclosures.
Cristiano Ronaldo Plaintiffs and Legal Actions
The plaintiffs—Michael Sizemore, Mikey Vongdara, and Gordon Lewis—seek damages and coverage for legal expenses arising from their alleged losses due to Ronaldo’s promotions associated with Binance.
Binance’s Legal Troubles With Ronaldo
Simultaneously, Binance and its founder, Changpeng Zhao, confront separate legal challenges. They recently admitted guilt and agreed to a $4.3 billion settlement with the U.S. government for Anti-Money Laundering law breaches and operating an unregistered money-transmitting business.
Zhao has resigned as CEO and faces potential imprisonment for up to 18 months. Binance also consented to up to five years of compliance monitoring by the U.S. Department of Justice and the Department of the Treasury.
Also Read: Zhao Try Fleeing, US Gov Push Strong To keep him Inside
SEC Lawsuit Against Cristiano Ronaldo
The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Binance, alleging the sale of unregistered securities. The regulatory body is reportedly probing potential misappropriation of customer funds by the crypto exchange.
Cristiano Ronaldo, amidst his fame in the sports world, finds himself entangled in a legal battle that implicates his involvement in promoting investments through Binance, adding to the ongoing legal woes of the embattled cryptocurrency exchange.
