Soccer superstar Cristiano Ronaldo is facing a proposed class-action lawsuit from investors who claim they suffered losses due to his promotion of the cryptocurrency exchange Binance. The lawsuit, filed in a Florida federal court on November 27, alleges that Ronaldo promoted Binance’s unregistered securities, including its BNB token and its crypto yield programs.
The complaint states that Ronaldo’s partnership with Binance began in mid-2022 when he launched his own series of non-fungible tokens (NFTs) on the platform. The plaintiffs claim that users who purchased Ronaldo’s NFTs were more likely to use Binance for other purposes, including investing in the platform’s unregistered securities.
— Cristiano Ronaldo (@Cristiano) November 28, 2023
Ronaldo’s endorsement of Binance is said to have played a significant role in the exchange’s growth, as he has over 850 million followers across social media platforms. The complaint alleges that the initial sale of Ronaldo’s NFTs led to a 500% increase in searches for Binance, indicating the power of his influence.
The plaintiffs are seeking $1 billion in damages from Ronaldo and Binance. The lawsuit is still in its early stages, and it remains to be seen how it will unfold. However, the allegations against Ronaldo could have a significant impact on his reputation and brand.
In addition to the legal challenges, Ronaldo’s promotion of Binance has also drawn scrutiny from regulators. In the United States, the Securities and Exchange Commission (SEC) has been investigating Binance for potential violations of securities laws. The SEC has not yet taken any action against Binance, but the investigation could lead to future enforcement actions.
The lawsuit against Ronaldo and Binance is a reminder of the risks associated with investing in unregistered securities. Cryptocurrency is a relatively new and unregulated market, and there is a risk that investors could lose money if they invest in unregistered securities. Before investing in any cryptocurrency, it is important to conduct thorough research and understand the risks involved. Continue Reading