Cristiano Ronaldo Faces $1B Class Action Lawsuit Over Binance Endorsement

In a stunning turn of events, soccer superstar Cristiano Ronaldo finds himself in the middle of a $1 billion class-action lawsuit related to his endorsement deal with cryptocurrency exchange Binance. The lawsuit, filed in the District Court for the Southern District of Florida, alleges that Ronaldo actively participated in the promotion and sale of unregistered securities in coordination with Binance.

A Dazzling Allegation

The lawsuit claims to represent consumers who purchased unregistered securities offered by Binance. The lead plaintiff, Michael Sizemore, a California resident, states that he bought these securities after being exposed to Ronaldo's misrepresentations and omissions regarding the Binance platforms.

According to the legal filing, Ronaldo's promotions encouraged his millions of followers, fans, and supporters to invest with the Binance platform, thereby soliciting investments in unregistered securities. The fame and influence of Ronaldo undoubtedly played a significant role in driving people towards Binance.

The Continuing Troubles at Binance

This lawsuit adds to a series of legal issues faced by Binance. Earlier this year, the U.S. Securities and Exchange Commission sued Binance and the company's founder, Changpeng "CZ" Zhao, alleging violations of federal securities laws. Additionally, Binance recently agreed to pay a staggering $4.3 billion to settle charges related to breaking sanctions and money-transmitting laws. It seems that the troubles at Binance are far from over.

Ronaldo's Connection with Binance

Ronaldo joined forces with Binance in 2022 to create a collection of non-fungible tokens (NFTs) that featured animated figures capturing memorable moments from his illustrious career. These NFTs garnered immense attention within the crypto community and beyond.

However, the allegations made in this lawsuit suggest that Ronaldo's involvement with Binance went beyond mere promotion and endorsement. The suit alleges that Ronaldo received a substantial compensation package, likely including digital assets transmitted through the Binance platforms.

The Role of Celebrities in Promoting Securities

This case highlights the importance of transparency and disclosure when it comes to celebrity endorsements of securities. The lawsuit cites previous warnings from the U.S. Securities and Exchange Commission regarding the classification of virtual tokens as securities. Celebrities have a duty to inform the public when they receive payment for promoting securities to ensure fair and informed investment decisions.

As the legal battle unfolds, it remains to be seen how Ronaldo will respond to these allegations. CoinDesk reached out to Ronaldo's representatives for comment but has yet to receive a response.

It is clear that this lawsuit adds another layer of complexity to the already tumultuous situation at Binance. As investors and consumers, it is crucial to stay informed and exercise caution when engaging with platforms and investments in the cryptocurrency space.