Soccer star Cristiano Ronaldo is being sued for allegedly promoting unregistered securities on Binance, according to a class action lawsuit recently filed in the U.S. District Court for the Southern District of Florida.
In 2022, Ronaldo signed a multi-year deal with Binance to launch his first NFT collection ahead of the Football World Cup. He later became a prominent figure in Binance’s advertising campaigns, leveraging the former Manchester United, Real Madrid and Juventus player’s global fan base. 1 million Social media followers.
The lawsuit alleges that Ronaldo engaged in a “persistent and aggressive” promotional campaign against Binance and that the promotions were “deceptive and unlawful.” The plaintiffs allege that Ronaldo knowingly or unknowingly assisted Binance in “solicitation of investments in unregistered securities by encouraging millions of followers, fans and supporters to invest on the Binance platform” and aided and abetted the company’s fraudulent conduct, resulting in distress. They claim that they did. casualty.
The U.S. Department of Justice last week settled a criminal case against Binance over allegations of money laundering, fraud, and sanctions violations. The cryptocurrency exchange will pay a $4.3 billion fine, one of the largest corporate settlements in U.S. history.
Binance’s former CEO Changpeng Zhao also pleaded guilty in a Seattle court last week to charges of violating and causing a financial institution to violate U.S. bank secrecy laws. As part of his plea deal, he agreed to pay a $50 million fine and step down as CEO.
Ronaldo is currently living in Saudi Arabia after transferring to Al-Nasr of the Saudi Professional League in December 2022. Ronaldo received a court summons to respond to the complaint within 21 days.
Concerns about the role of celebrities in cryptocurrency promotion
The lawsuit against Ronaldo is part of a growing trend regarding the role of celebrities in cryptocurrency promotions. Journalist Kim Kardashian, NBA Hall of Famer Paul Pierce, actress Lindsay Lohan, and YouTuber Jake Paul have all received compensation for promoting cryptocurrencies in the past year. agreed to settle with the Securities and Exchange Commission (SEC) without disclosing.
The SEC also filed a lawsuit against Binance and Zhao in June, alleging they violated U.S. securities laws.
Basketball legend Shaquille O’Neal, football star Tom Brady, Seinfeld creator Larry David and more than a dozen other FTX promoters were also accused of promoting the sale of unregistered securities. We were hit with a class action lawsuit this year.
Representatives for Binance and Cristiano Ronaldo did not immediately respond to The Block’s request for comment.
Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.
© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.