Football Icon Cristiano Ronaldo Confronts $1 Billion Class Action Lawsuit Over Binance Promotion

Football Icon Cristiano Ronaldo Confronts $1 Billion Class Action Lawsuit Over Binance Promotion

Soccer icon Cristiano Ronaldo is facing a staggering $1 billion class action lawsuit linked to his endorsement of Binance, the world’s largest cryptocurrency exchange.

The lawsuit, filed at the United States District Court for the Southern District of Florida Miami Division, alleges Ronaldo’s involvement in promoting and supporting the sale of unregistered securities in collaboration with Binance.

Ronaldo had entered a multi-year partnership with Binance in June 2022 to introduce Web3 and non-fungible tokens (NFTs) to his massive fanbase. Collaborating on three NFT collections, including the recent CR7 ForeverZone launched in October, Ronaldo’s association allegedly drew users to Binance, where they possibly engaged in investing in unregistered securities like Binance Coin (BNB) and other yield programs.

The plaintiffs, Michael Sizemore, Mikey Vongdara, and Gordon Lewis, assert that influencers like Ronaldo significantly contributed to Binance’s growth by promoting these securities in exchange for substantial payments. They claim Ronaldo’s NFT sales prompted a 500% surge in searches for Binance.

The lawsuit highlights Binance’s recent legal issues, citing cases brought by regulatory bodies like the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) for alleged violations of U.S. trading laws regarding unregistered securities. The plaintiffs also mention the SEC’s guidance to celebrities regarding disclosure of payments for promoting securities, indicating Ronaldo’s failure to comply.

Seeking compensatory damages, restitution, disgorgement of revenues, legal fees, and statutory damages, the plaintiffs allege that Binance’s rise was fueled by the offer and sale of unregistered securities, facilitated by influential figures like Ronaldo.

This lawsuit follows Binance’s recent legal settlement of $4.3 billion with the U.S. Department of Justice over anti-money laundering law violations, adding to the mounting legal challenges faced by the exchange and its founder, Changpeng Zhao.


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