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- Football star Cristiano Ronaldo is facing a lawsuit in Florida District Court for promoting Binance and unregistered securities.
- The plaintiffs claim they suffered huge losses from his promotion of the now legally embroiled crypto exchange.
Soccer Mogul, Cristiano Ronaldo Faces Class-Action Lawsuit
Pro-soccer player Cristiano Ronaldo is hit with a lawsuit filed in a Florida District Court on Nov 27, 2023. He faces a class action lawsuit for promoting Binance and unregistered securities.
The plaintiffs, Mikey Vongdara, Michael Sizemore, and Gordon Lewis, claim they’ve made losses from his promotion of Binance.
Binance is accused of not taking appropriate anti-money laundering measures and was recently fined $4.3 billion in a settlement deal by the U.S. authorities.
According to the filing, Cristiano promoted, assisted in, and actively participated in offering and selling unregistered securities in coordination with Binance.
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.Part of the Lawsuit filing said.
Ronaldo Multi-Year Partnership with Binance
The soccer player partnered with Binance in a multi-year deal in mid-2022. As per the partnership deal, Ronaldo would promote his nonfungible tokens (NFTs).
In addition to this, at least three of the soccer star’s collections would be tied to BinanceNFT.
Users who wanted to sign up for his NFT collection claimed they were likelier to use Binance for other purposes like buying unregistered securities.
The unregistered securities included Binance’s yield programs and the BNB token.
His reach and influence made Cristiano vital to Binance’s growing popularity. He has over 850 million followers on social media, says the plaintiff.
They said his NFT sales promoted the crypto exchange, with a 500% increase in searches for the platform the week following the initial sale.
Additionally, they allege that Ronaldo knew or would have known about the exchange selling unregistered securities. He has investment experience and huge resources to get outside advisers.
Ronaldo’s Suit Latest Turn in Binance Saga
The lawsuit referenced the U.S. Securities and Exchange Commission (SEC) guidance warning celebrities of the need for transparency.
Celebrities may need to disclose payments they receive for promoting cryptocurrencies, which the plaintiffs claim Ronaldo didn’t do.
They’re therefore seeking damages and funds to cover legal fees.
Meanwhile, Binance and its former CEO, Changpeng Zhao, continue to face legal issues due to money laundering violations.
After pleading guilty to money laundering and stepping down as CEO of Binance, CZ still faces up to 18 months in prison.
On the other hand, Binance needs to pay a whopping $4.3 billion in fines for settlement with the U.S. authorities for the same violations.
Moreover, it has agreed to up to five years of compliance monitoring by the U.S. Department of Justice and the Department of the Treasury.
The SEC is also suing Binance for selling unregistered securities and is investigating whether the crypto exchange platform misappropriates customer funds.
Can the complainants win the lawsuit?