Cristiano Ronaldo facing massive £790m class action lawsuit
Cristiano Ronaldo is facing a £790million civil action lawsuit in Florida regarding his promotion of cryptocurrency exchange Binance.
A group of Binance customers have filed a class-action lawsuit against Ronaldo, claiming£790m ($1 billion) in damages. The lawsuit results from Ronaldo’s promotion of the cryptocurrency exchange, which was recently penalized over £3.1m ($4 billion) for violating the Bank Secrecy Act.
It is claimed that in 2022, the Portuguese star partnered with Binance to create NFT collections and share posts on social media. NFTs are digital, non-fungible tokens, usually in the form of digital art, music, etc. The collectibles are recorded on a blockchain, come with ownership and authenticity credentials, and can not be copied or replicated.
The claimants, led by Michael Sizemore, have accused him of playing a role in selling unregistered securities with Binance and of unfair and deceptive trade practices, among other claims.
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The five-time Ballon d’Or award winner claimed that his collaboration with Binance to create NFTs would revolutionize the NFT landscape and raise the football profile. Initially, the most affordable NFT was priced at $77, but within a year, its value plummeted to approximately $1.
The lawsuit alleges that Ronaldo’s partnership with Binance resulted in a “500% increase in searches” for the cryptocurrency exchange, which the claimants claim made customers more likely to invest in Binance for other reasons.
Gary Gensler, the chair of the SEC, has emphasized that celebrities must “publicly disclose both the source and amount of compensation received for promoting investments in securities.”
“When celebrities endorse investment opportunities, including crypto-asset securities, investors should be careful to research if the investments are right for them, and they should know why celebrities are making those endorsements,” he said to BBC.
The claimants argue that Ronaldo lacked transparency in his dealings, including how much he was paid to promote the products. They highlight the US Securities and Exchange Commission’s requirement for celebrity promoters to disclose their endorsement compensation.
The founder and ex-CEO of Binance, Changpeng Zhao, recently resigned and pleaded guilty to criminal charges under the Bank Secrecy Act. A federal judge in the United States has ordered him to stay in the country after his plea deal last week. The US government is also seeking to prevent Zhao from leaving the US and returning to the Emirates before he is sentenced for his criminal charges.
The claimants in the Ronaldo class action further argued that as an experienced investor with access to external advice, Ronaldo should have been aware of the potential concerns regarding Binance’s sale of unregistered crypto securities. The legal action refers explicitly to Ronaldo’s involvement in social media promotions, NFT collection, and other advertising activities with Binance.
Despite the legal challenge, Ronaldo continues working with the troubled crypto exchange. He recently tweeted about collaborating with Binance again on Tuesday night.
“Cooking something up with Binance,” wrote the Al-Nassr star on Twitter. Neither Ronaldo nor Binance has responded to requests for comments on the lawsuit, according to Forbes.
Express Sport has approached Ronaldo’s representatives for comment.
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