Professional footballer Cristiano Ronaldo has been sued in the US, accused of promoting Binance and unregistered securities. It was alleged that Ronaldo’s NFTs linked to Binance encouraged investment into the crypto exchange’s unregistered securities.
Serious Allegations Faced
The star player, Cristiano Ronaldo, has become the target of a class-action lawsuit filed by those claiming to be harmed by his collaboration with the legally troubled crypto exchange Binance. In the lawsuit filed in a US district court in Florida on November 27, it was claimed that Ronaldo promoted and facilitated the promotion and sale of unregistered securities in coordination with Binance.
As known, Binance had entered into a long-term collaboration with Ronaldo in mid-2022 to promote a series of his own NFTs, at least three collections of which were linked to Binance. The lawsuit alleges that users who purchased Ronaldo’s NFTs were likely directed to invest in tools deemed unregistered securities, including Binance’s BNB and the exchange’s earning programs. The lawsuit claims, “Ronaldo’s promotion has demanded or assisted millions of followers, fans, and supporters to invest in Binance’s unregistered securities by encouraging them to invest on the Binance platform.”
In the lawsuit, Ronaldo’s role in boosting Binance’s popularity with his 850 million social media followers is underscored. To support this claim, it is shown that Ronaldo was incredibly successful in promoting the crypto exchange’s NFT sales, with searches related to Binance on search engines increasing by 500% in the week following the first NFT sale. Furthermore, it is argued that Ronaldo, with his investment experience and sufficient resources to obtain advisors, knew or should have known that Binance was selling unregistered crypto securities.
The lawsuit also references the US Securities and Exchange Commission’s (SEC) guideline that celebrities must openly share the payments they receive for promoting cryptocurrencies, noting that Ronaldo did not do this.
Binance and Changpeng Zhao’s Legal Battle in the US Continues
Last week, Binance and its founder Changpeng Zhao accepted allegations that they violated Anti-Money Laundering laws and transferred money off the record, reaching an agreement with the US Department of Justice (DoJ), the US Treasury Department, and federal regulators. Binance agreed to pay the US government $4.3 billion as part of the settlement.
Moreover, Zhao resigned from his CEO position and is facing a potential jail sentence of up to 18 months. Binance has agreed that its compliance with laws for up to five years will be monitored and controlled by the DoJ and the US Treasury Department. Meanwhile, the SEC’s lawsuit against Binance, alleging among other charges the sale of unregistered securities, continues.
- Ronaldo sued over Binance promotion.
- Allegations of unregistered securities investment.
- Binance’s ongoing legal struggles detailed.
