Class action lawsuits were filed against high-profile organizations and individuals, including pro football star Cristiano Ronaldo, for promoting the Binance crypto exchange.
Ronaldo Named In Class Action Lawsuit
In a surprising turn of events, football icon Cristiano Ronaldo is facing a class-action lawsuit over his involvement in a promotional campaign for the beleaguered crypto exchange Binance. Investors, claiming losses, have filed a lawsuit in a US District Court in Florida, asserting that Ronaldo endorsed Binance as a "safe and reputable exchange."
Plaintiffs Michael Sizemore, Mikey Vongdara, and Gordon Lewis filed four separate class-action lawsuits against Ronaldo, Major League Baseball, F1, Mercedes-Ben, and global advertising agency Dentsu.
In three of the legal actions, multiple entities are charged with assisting, abetting, and/or directly participating in the extensive, multi-billion dollar fraudulent activities perpetrated by FTX by promoting it as a secure and trustworthy exchange. The fourth lawsuit specifically contends that Cristiano Ronaldo participated in the widespread promotion of investments in unregistered securities on behalf of Binance.
Ronaldo's Affiliation with Binance: NFTs and Beyond
Ronaldo's association with Binance dates back to mid-2022 when he dropped his first non-fungible token (NFT) collection on the platform. The lawsuit contends that users flocked to Binance primarily for Ronaldo's NFTs, creating a scenario where these users were more likely to engage in other crypto-related activities, including investments in what the lawsuit terms as "unregistered securities," such as Binance's BNB.
The lawsuit underlines Ronaldo's pivotal role in propelling Binance's popularity, citing his massive social media following of 850 million.
"Binance’s partnership with celebrities like Ronaldo was clearly designed to use the positive reputation associated with specific celebrities to convince consumers that Binance was a safe place to buy and sell cryptocurrency."
It claims that Ronaldo's NFT sales were instrumental in a significant uptick for the exchange, with a staggering 500% increase in searches for Binance observed in the week following the initial sale.
Legal Troubles For FTX, Binance
The lawsuit against Ronaldo unfolds against the backdrop of a crypto industry grappling with scandals and legal issues. It draws attention to the downfall of FTX, where the former CEO, Sam Bankman-Fried, was recently found guilty of money laundering and fraud.
Binance, too, has faced its share of troubles, with CEO Changpeng "CZ" Zhao pleading guilty and paying a hefty settlement for Anti-Money Laundering violations and running an unregistered securities business. He has since then stepped down as CEO, and the exchange is now subject to a five-year compliance monitorship by the U.S. Department of Justice and the Department of the Treasury, signifying a challenging road ahead.
Ronaldo's Alleged Knowledge: A Damning Accusation
The lawsuit suggests that Ronaldo, with his investment experience and substantial resources, should have been aware of Binance's alleged involvement in selling unregistered crypto securities. It points out that he could have sought advice from external advisors, implying complicity in the purported fraudulent activities of the exchange.
As the legal battle unfolds, Ronaldo finds himself entangled in the aftermath of Binance's tumultuous journey, raising questions about celebrity endorsements in the crypto space and their potential legal ramifications.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
