Cristiano Ronaldo, renowned professional soccer star, finds himself entangled in a class-action lawsuit as plaintiffs allege losses stemming from his endorsement of the cryptocurrency exchange Binance, currently mired in legal troubles. Filed on November 27 in the U.S. District Court for the District of Florida, the lawsuit asserts that Ronaldo collaborated with Binance in promoting and facilitating the offering and sale of unregistered securities.
The partnership between Binance and Ronaldo commenced in mid-2022, aimed at endorsing the football star's line of non-fungible tokens (NFTs). Allegedly, at least three of Ronaldo's collectibles were affiliated with Binance. Plaintiffs argue that individuals who acquired Ronaldo's NFTs were more inclined to engage with Binance for various purposes, including investing in what they perceived as unregistered securities like Binance’s BNB and its cryptocurrency earnings plan. The lawsuit contends that Ronaldo’s endorsements encouraged his vast social media following to invest via the Binance platform, effectively soliciting investments in unregistered securities.
Citing Ronaldo's extensive social media influence boasting 850 million followers, the complaint underscores his pivotal role in augmenting Binance's visibility. Notably, the success of Ronaldo's NFT sales purportedly contributed significantly to bolstering the exchange, as Binance searches surged by 500% in the week following the initial sale.
The lawsuit asserts that Ronaldo, given his investment experience and access to legal counsel, should have been aware of Binance's purported sale of unregistered cryptocurrency securities. It references U.S. Securities and Exchange Commission (SEC) advisories cautioning celebrities about the necessity of disclosing payments received for cryptocurrency endorsements, alleging Ronaldo's failure to adhere to these guidelines.
Plaintiffs Michael Sizemore, Mikey Vongdara, and Gordon Lewis, spearheading the class-action suit, seek compensation for damages and coverage for legal expenses. Concurrently, Binance and its founder Changpeng Zhao are embroiled in their own legal battles, recently pleading guilty and paying a hefty $4.3 billion settlement to the U.S. government for violating anti-money laundering laws and operating an unregistered money transfer business. Zhao's resignation as CEO and potential 18-month prison sentence, coupled with Binance's commitment to undergo compliance monitoring by federal authorities for five years, mark the continuation of the exchange's regulatory and legal challenges. Additionally, the SEC’s lawsuit against Binance alleges the sale of unregistered securities and hints at a probe regarding potential misappropriation of customer funds.
