Cristiano Ronaldo Faces $1 Billion Lawsuit Over Binance Ads
Renowned footballer Cristiano Ronaldo is confronting a class action lawsuit in the United States regarding his promotion of Binance, the world’s largest cryptocurrency exchange.
Plaintiffs allege that Ronaldo’s endorsement persuaded them to engage in loss-making investments, seeking damages exceeding $1 billion (£790 million).
In November 2022, Binance introduced its first “CR7” collection of non-fungible tokens (NFTs) in collaboration with Ronaldo. NFTs are digital assets representing ownership of online content.
The lawsuit claims that Ronaldo’s promotion led to a “500% increase in searches” for Binance, prompting individuals to invest in what the claimants term “unregistered securities,” such as Binance’s BNB cryptocurrency.
The US Securities and Exchanges Commission (SEC) considers such assets as securities, requiring celebrities endorsing them to adhere to US law.
The claimants argue that Ronaldo should have disclosed the compensation he received, which he allegedly failed to do.
The class action suit follows the US Justice Department’s demand for Binance to pay $4.3 billion (£3.4 billion) in penalties and forfeitures for violating sanctions and facilitating money movement for criminals and terrorists.
Ronaldo and Binance are purportedly planning future collaborations, as indicated by a recent social media post by the footballer.
This lawsuit adds to the legal challenges faced by celebrities involved in cryptocurrency promotions, emphasizing the need for clearer regulatory guidelines in this evolving financial landscape.
