Cristiano Ronaldo Faces a $1 Billion Lawsuit for Binance Promotion
The renowned football superstar Cristiano Ronaldo finds himself entangled in a legal battle that could cost him over a billion dollars. The lawsuit, filed in Florida, alleges that Ronaldo’s association with the controversial cryptocurrency exchange Binance led investors to make unfortunate financial decisions. This class-action suit, spearheaded by plaintiffs Michael Sizemore, Mikey Vongdara, and Gordon Lewis, accuses Ronaldo of promoting unregistered securities in collaboration with Binance.
Ronaldo’s partnership with Binance dates back to June 2022, when the football icon embarked on a multi-year collaboration to introduce Web3 and non-fungible tokens (NFTs) to his vast fanbase. Three NFT collections were launched throughout this partnership, with the latest being “The CR7 ForeverZone” in October. While Ronaldo’s promotional efforts seemed to bolster Binance’s influence, they have now come under scrutiny as investors claim they were encouraged to invest in unregistered securities, including Binance Coin (BNB) and yield programs offered on the platform.
The lawsuit contends that celebrities like Ronaldo played a pivotal role in driving Binance’s growth by endorsing these securities in exchange for substantial payouts. This alleged collaboration resulted in a significant uptick in searches for Binance, a 500% surge following Ronaldo’s NFT sales. The plaintiffs argue that Ronaldo should have been aware of Binance’s involvement in selling unregistered crypto securities, given his extensive investment experience and resources to seek expert advice.
Additionally, the lawsuit references the guidance provided by the U.S. Securities and Exchange Commission (SEC), emphasising the importance of celebrities disclosing their earnings from cryptocurrency promotions. Ronaldo’s failure to adhere to this guidance forms a critical aspect of the plaintiffs’ case.
It’s worth noting that this legal debacle comes hot on Binance’s legal troubles. The cryptocurrency exchange recently agreed to a $4.3 billion settlement with the U.S. Department of Justice for violations of anti-money laundering laws and operating an unregistered money-transmitting business. Furthermore, Binance’s founder, Changpeng “CZ” Zhao, stepped down as CEO and faces potential prison time.
Ronaldo, who boasts a net worth of around $500 million, is no stranger to the world of endorsements and lucrative deals. His contract with Saudi Arabian club Al-Nassr FC alone fetches him approximately $220 million annually. Beyond football, Ronaldo’s CR-7 branded clothing line and various accessories and endorsements have contributed to his substantial wealth.
This lawsuit against Cristiano Ronaldo underscores the growing legal scrutiny surrounding the cryptocurrency industry and its associated promotions. While the football legend may have aimed to elevate the NFT game and bring football to new heights, he now faces a legal battle that could see him paying a staggering sum if found liable for promoting Binance’s alleged unregistered securities. Ronaldo’s fate in this high-stakes case remains uncertain as the legal proceedings unfold.
