Key Insights
- Cristiano Ronaldo hit with class action lawsuit over promoting Binance’s crypto platform and tokens
- Plaintiffs allege losses from Ronaldo spurring investment in Binance’s unregistered securities
- Comes as Binance founder CZ resigned as CEO and faces criminal charges over AML violations
MIAMI, FL — Global soccer phenomenon Cristiano Ronaldo is now facing legal troubles himself stemming from a partnership with embattled cryptocurrency firm Binance to promote digital collectibles known as non-fungible tokens or NFTs.
A proposed class action lawsuit filed November 27th in Florida federal court accuses Ronaldo of unlawfully touting unregistered securities tied to Binance. The complaint alleges the soccer star’s lucrative endorsement deal boosted Binance user sign-ups and directed fans to invest in tokens like BNB without proper disclosures.
Cooking something up with @binance https://t.co/FMAP5GAdxE
— Cristiano Ronaldo (@Cristiano) November 28, 2023
Plaintiffs claim they suffered losses after Ronaldo encouraged his legions of social media followers to utilize Binance services that regulators deem illegally dealing in securities. Attorneys point to Securities and Exchange Commission guidance warning celebrities they must reveal payments for crypto promotions.
The lawsuit lands as Binance and its founder Changpeng Zhao already confront staggering fines and criminal charges brought by the U.S. Department of Justice related to anti-money laundering violations. Zhao stepped down as CEO while agreeing to steep penalties.
Read also! Binance.US Severs Ties with Former Chairman CZ After Legal Troubles
But Ronaldo now faces his own legal jeopardy for involvement with the maligned trading platform. The new complaint calls out the iconic athlete’s extensive investment experience, arguing he should have known about Binance’s alleged unregistered securities activities.
With his reputation as one of soccer’s most bankable stars, Ronaldo’s endorsement was crucial to fueling Binance’s meteoric growth. The lawsuit underscores how celebrities touting crypto ventures place themselves at risk without careful due diligence into the underlying projects.