Ronaldo’s Legal Challenge with Binance Promotion
Cristiano Ronaldo, a renowned soccer star, has become the subject of a proposed class-action lawsuit. Plaintiffs allege that they suffered significant losses due to his promotion of the crypto exchange Binance, now facing legal scrutiny.
Lawsuit Filed in U.S. District Court
On November 27, a filing was made to a district court in Florida, accusing Ronaldo of being actively involved in promoting and selling unregistered securities in collaboration with Binance.
Ronaldo’s Partnership with Binance
In mid-2022, Binance entered a multiyear partnership with Ronaldo to endorse a series of his nonfungible tokens (NFTs). At least three collections from the soccer star have been tied to the Binance platform.
Allegations from the Plaintiffs
The complaint asserts that users who engaged with Ronaldo’s NFTs were more likely to utilize Binance for other investments, which the plaintiffs claim are unregistered securities. This includes Binance’s native cryptocurrency, BNB, and its crypto yield programs.
The Influence of Ronaldo’s Promotions
According to the lawsuit, Ronaldo’s significant influence and reach, with a following of 850 million across social media, played a crucial role in Binance’s growing popularity. The plaintiffs allege that his NFT sales significantly boosted the exchange’s profile, citing a 500% increase in searches for Binance following the initial sale.
Ronaldo’s Alleged Awareness
The suit contends that Ronaldo knew or should have known about the nature of Binance’s offerings, given his investment experience and access to expert advisers. It alleges his involvement facilitated the promotion of what are claimed to be unregistered crypto securities.
Conclusion: The Implications of the Lawsuit
This lawsuit highlights the growing scrutiny on celebrity endorsements in the cryptocurrency industry, particularly around the promotion of potentially unregistered securities. The outcome of this case could have significant implications for the way crypto platforms engage with public figures for promotion.