Cristiano Ronaldo Faces Class Action Lawsuit For Promoting Binance

Cristiano Ronaldo Faces Class Action Lawsuit For Promoting Binance

Pro-football sensation Cristiano Ronaldo is currently entangled in a proposed class-action lawsuit, where plaintiffs allege that they incurred losses due to his association with the legally embroiled cryptocurrency exchange, Binance. Filed on November 27 in a United States district court in Florida, the lawsuit contends that Ronaldo actively participated in promoting and assisting in the sale of unregistered securities in collaboration with Binance.

Ronaldo's involvement with Binance began in mid-2022 through a multiyear partnership, primarily aimed at promoting a series of his exclusive nonfungible tokens (NFTs). Three of these NFT collections were directly linked to Binance. The complaint argues that individuals who engaged with Ronaldo's NFTs were more likely to utilize Binance for various purposes, including investing in what they assert are unregistered securities, such as Binance's BNB token and its cryptocurrency yield programs.

The lawsuit alleges that Ronaldo's promotions played a pivotal role in encouraging investments in unregistered securities by leveraging his vast influence, as he boasts 850 million followers across various social media platforms. The plaintiffs claim that Ronaldo's NFT sales significantly boosted Binance's popularity, leading to a 500% surge in searches for the exchange in the week following the initial sale.

The legal action contends that Ronaldo should have been aware of Binance's alleged sale of unregistered crypto securities, given his investment experience and ample resources to seek external advice. The complaint cites guidance from the U.S. Securities and Exchange Commission (SEC) urging celebrities to disclose payments received for promoting cryptocurrencies—a requirement that Ronaldo purportedly failed to fulfill.

The class-action lawsuit has been brought forth by Michael Sizemore, Mikey Vongdara, and Gordon Lewis, who are seeking damages and financial coverage for legal fees.

Meanwhile, Binance and its founder, Changpeng Zhao aka CZ, facing their own legal challenges. The company pleaded guilty and agreed to a $4.3 billion settlement with the U.S. government for violations of Anti-Money Laundering laws and running an unregistered money-transmitting business. Zhao has stepped down as CEO and may face up to 18 months in prison.

Binance has also committed to up to five years of compliance monitoring by the U.S. Department of Justice and the Department of the Treasury. The SEC has additionally filed a lawsuit against Binance, alleging, among other charges, the sale of unregistered securities and investigating potential misappropriation of customer funds.

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