Yello Paradisers! Cristiano Ronaldo, the renowned football superstar, is now facing a class-action lawsuit related to his promotion of cryptocurrency exchange Binance. The lawsuit, filed in a Florida District Court, accuses Ronaldo of promoting unregistered securities in collaboration with Binance, leading to financial losses for investors.
Ronaldo’s Involvement with Binance and NFTs
In mid-2022, Ronaldo teamed up with Binance to launch a collection of non-fungible tokens (NFTs). The plaintiffs argue that Ronaldo’s influence and promotion significantly increased user engagement with Binance, not only for NFTs but also for other crypto-related services, including investments in unregistered securities like Binance’s BNB token and cryptocurrency yield programs.
Allegations of Misleading Promotions
The lawsuit alleges that Ronaldo’s promotions effectively solicited investments in unregistered securities by encouraging his massive following to invest through the Binance platform. The plaintiffs contend that Ronaldo’s endorsement of Binance’s services and products significantly influenced their decision to use the exchange, leading to their involvement in unregistered securities.
Failure to Disclose Payment for Promotion
A critical point in the lawsuit is the claim that Ronaldo failed to disclose his compensation for promoting Binance and its products, as required by the U.S. Securities and Exchange Commission (SEC) for celebrity endorsements of cryptocurrency assets. The complaint highlights the success of his NFT sales and the surge in search engine volumes for “Binance” following his promotions.
Binance’s Ongoing Legal Challenges
This lawsuit against Ronaldo comes amid Binance’s legal difficulties, including a $4.3 billion settlement with the Department of Justice on money laundering charges. Changpeng Zhao, Binance’s CEO, has also stepped down following these legal issues and is facing potential imprisonment.
Conclusion: Increasing Scrutiny on Celebrity Crypto Endorsements
The case against Cristiano Ronaldo signifies the growing scrutiny over celebrity endorsements in the cryptocurrency sector, especially concerning the promotion of unregistered securities. It underscores the need for clear disclosure and adherence to regulatory guidelines in crypto-related promotions.
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