Cristiano Ronaldo faces legal action, accused of promoting unregistered securities via Binance-affiliated NFTs.
Pro-soccer icon Cristiano Ronaldo is entangled in a proposed class-action lawsuit for his association with the embattled crypto platform Binance, allegedly contributing to the promotion of unregistered securities.
Filed on November 27 in a Florida-based U.S. district court, the lawsuit contends that Ronaldo actively contributed to the offering and sale of unregistered securities in collaboration with Binance.
In a partnership initiated in mid-2022, Binance collaborated with Ronaldo to market a series of his unique nonfungible tokens (NFTs), reportedly linking at least three of his NFT collections to the Binance platform.
The complaint asserts that individuals acquiring Ronaldo’s NFTs were more inclined to engage with Binance for various activities, including investment in what they deem unregistered securities—specifically highlighting Binance’s BNB and crypto yield programs.
Leveraging his massive social media influence of 850 million followers, Ronaldo’s NFT sales allegedly significantly amplified Binance’s visibility, marking a substantial 500% spike in searches for the platform in the week subsequent to the primary NFT sale.
The lawsuit contends that Ronaldo, given his investment background and access to external counsel, should have been aware of Binance’s purported trade of unregistered crypto securities. It underscores Ronaldo’s alleged failure to disclose compensation received for endorsing cryptocurrencies, as advised by the U.S. Securities and Exchange Commission (SEC).
The plaintiffs behind the class-action lawsuit—Michael Sizemore, Mikey Vongdara, and Gordon Lewis—are seeking reparations and coverage for legal costs.
Meanwhile, Binance and its founder Changpeng “CZ” Zhao confront their legal predicaments, having admitted guilt and paying a hefty $4.3 billion settlement for breaching Anti-Money Laundering regulations and operating an unlicensed money transmitting enterprise to the U.S. government. Zhao’s resignation as CEO and potential 18-month imprisonment loom, while Binance faces extensive compliance monitoring by U.S. regulatory bodies.
Simultaneously, the SEC’s legal actions against Binance encompass allegations of trading unregistered securities and an ongoing probe into potential mishandling of customer funds.
