Cristiano Ronaldo Faces $1 Billion Lawsuit Over Binance Promotion
- Cristiano Ronaldo faces a $1 billion class action lawsuit over his promotion of Binance.
- Allegations suggest his endorsement led to loss-making investments, with damages sought exceeding $1 billion.
- The lawsuit focuses on Ronaldo’s failure to disclose his compensation for endorsing Binance, a potential violation of SEC regulations.
- The broader issue extends beyond Ronaldo, with Nigel Green of DeVere Group urging scrutiny of global regulators’ slow response in guiding the evolving financial landscape.
- Binance, already under scrutiny, is simultaneously dealing with a $4.3 billion penalty demand from the US Justice Department and faces class action lawsuits alongside entities like Major League Baseball, Formula 1, and Mercedes-Benz.
In a surprising turn of events, football sensation Cristiano Ronaldo finds himself at the center of a class action lawsuit in the US regarding his promotion of Binance, the world’s largest cryptocurrency exchange.
The plaintiffs allege that Ronaldo’s endorsement misled them into making loss-making investments, seeking damages exceeding $1 billion.
The CR7 NFT Collection: A Controversial Partnership
In November 2022, Binance introduced its first “CR7” collection of non-fungible tokens (NFTs) in collaboration with Ronaldo.
The footballer, in a social media video, promised to revolutionize the NFT game and elevate football to new heights.
However, the cheapest NFT, initially priced at $77, plummeted to approximately $1 within a year, raising eyebrows.
The claimants argue that Ronaldo’s promotion triggered a “500% increase in searches” for Binance, pushing people to invest in what they deem “unregistered securities,” including Binance’s BNB cryptocurrency.
The U.S. Securities and Exchange Commission (SEC) asserts that such assets can be classified as securities, requiring celebrities to comply with US law when endorsing them.
Allegations Against Ronaldo and Binance
The lawsuit contends that Ronaldo should have disclosed the extent of his compensation for endorsing Binance, a crucial detail he allegedly omitted.
SEC Chair Gary Gensler emphasizes the responsibility of celebrities to disclose payment details when endorsing investments, particularly crypto-asset securities.
Nigel Green, DeVere Group’s CEO, argues that blaming Ronaldo oversimplifies a broader issue, urging attention towards global regulators’ lack of clear guidelines in the evolving financial landscape.
Broader Implications and Future Collaboration
As this legal saga unfolds, it becomes evident that Ronaldo and Binance are not the sole targets.
Consultancy firm DeVere Group’s Nigel Green emphasizes the need to scrutinize global regulators who have been slow in establishing guidelines for this evolving financial landscape.
Despite the legal turmoil, Ronaldo and Binance hint at future collaborations. Ronaldo’s recent social media post teases that they are “cooking something up.”
The silence from both parties leaves room for speculation and raises questions about the future trajectory of their partnership.
Binance’s Woes Extend Beyond Ronaldo
Interestingly, this class action lawsuit against Binance coincided with the US Justice Department’s demand for the firm to pay $4.3 billion in penalties and forfeitures.
The accusations include aiding users in circumventing global sanctions and facilitating illicit money movements.
Binance’s CEO, Changpeng Zhao, resigned amidst admissions of money-laundering violations.
Notably, other major entities, including Major League Baseball, Formula 1, and Mercedes-Benz, are also facing class action lawsuits related to their promotion of the failed crypto-exchange FTX.