Soccer celebrity Cristiano Ronaldo is facing a proposed class-action lawsuit where plaintiffs allege they suffered financial losses due to his endorsement of the cryptocurrency exchange Binance, which is currently facing legal issues.
The filing, made on November 27 in a US district court in Florida, contends that Ronaldo actively participated in promoting and selling unregistered securities in collaboration with Binance.
In the middle of 2022, Binance formed a partnership with Ronaldo for a multiyear deal to promote his nonfungible tokens (NFTs). At least three of Ronaldo’s NFT collections were associated with Binance.
According to the complaint, individuals who signed up for Ronaldo’s NFTs were more likely to use Binance for other activities, such as investing in what the plaintiffs argue are unregistered securities, including Binance’s BNB cryptocurrency, which has seen its value decrease to $230, and its cryptocurrency yield programs.
“Ronaldo’s promotions solicited or assisted Binance in soliciting investments in unregistered securities by encouraging his millions of followers, fans, and supporters to invest with the Binance platform,” reads the filing.
The lawsuit claims Ronaldo was aware, or should have been aware, of Binance’s sale of unregistered crypto securities, given his investment expertise and access to external advisors.
The lawsuit referenced guidelines issued by the U.S. Securities and Exchange Commission (SEC) which advise celebrities to disclose any compensation they receive for promoting cryptocurrencies. The complaint alleges that Ronaldo failed to comply with these guidelines.
The plaintiffs in the class-action lawsuit are Michael Sizemore, Mikey Vongdara, and Gordon Lewis, who are seeking damages and compensation for their legal expenses.
Binance’s rising popularity was significantly bolstered by Ronaldo’s influential presence and extensive reach. Just yesterday, Binance posted a video featuring Cristiano Ronaldo suggesting a possible collaboration that gathered 23.7 million views.
