5-times Ballon’Dor winner and Portugese football star, Cristiano Ronaldo may be in for some hard time due to his decision to promote popular crypto platform, Binance.
The renowned footballer is now grappling with a proposed class-action lawsuit, seeking a staggering $1 billion in damages.
The legal fracas stems from Ronaldo’s involvement in promoting cryptocurrency-related “non-fungible tokens” (NFTs) issued by the embattled crypto exchange giant, Binance.
The Allegation
The lawsuit, filed on November 27 in a United States district court in Florida, alleges that Ronaldo actively participated in the offer and sale of unregistered securities in collaboration with Binance.
The complaint contends that Ronaldo’s promotion of Binance’s NFTs encouraged users to invest in what is claimed to be unregistered securities, including Binance’s BNB and its crypto yield programs.
Read more about how the Binance scam
Ronaldo’s culpability
Ronaldo, who has a colossal social media following of 850 million people is said to have played a pivotal role in Binance’s growing popularity through his NFT promotions.
The lawsuit asserts that Ronaldo’s influence led to a 500% increase in searches for Binance in the week following the initial NFT sale.
The plaintiffs claim that Ronaldo should have been aware of Binance’s sale of unregistered crypto securities, given his investment experience and vast resources.
SEC Involvement
The lawsuit cites U.S. Securities and Exchange Commission (SEC) guidance, emphasizing the need for celebrities to disclose payments received for promoting cryptocurrencies—an obligation the complaint asserts Ronaldo failed to fulfill.
The three plaintiffs behind the class-action lawsuit, Michael Sizemore, Mikey Vongdara, and Gordon Lewis, are seeking damages and funds to cover legal fees.
Binance’s Ongoing Legal Woes
Coinciding with Ronaldo’s legal predicament, Binance and its founder Changpeng “CZ” Zhao are embroiled in their own legal battles.
Binance recently pleaded guilty and agreed to a $4.3 billion settlement for Anti-Money Laundering violations and operating an unregistered money-transmitting business. Zhao stepped down as CEO, facing potential prison time, while Binance is subjected to up to five years of compliance monitoring by U.S. regulatory bodies.
Ronaldo’s Worry
Cristiano Ronaldo, an iconic and wealthy athlete, has played for esteemed clubs like Real Madrid, Juventus, and Manchester United.
The lawsuit poses not only a significant legal challenge for the soccer star but also raises questions about the responsibility of celebrities in endorsing cryptocurrency ventures.
As legal proceedings unfold, the intersection of sports, celebrities, and the crypto world takes center stage, leaving Ronaldo and Binance in the midst of a legal storm.
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Culled in by Fortune Omosola
