Professional soccer star Cristiano Ronaldo is facing a proposed class action lawsuit for allegedly actively participating in the promotion of unregistered securities on Binance. The lawsuit alleges that Ronaldo’s NFT promotions tied to Binance encouraged investments in unregistered securities, including Binance’s BNB and cryptocurrency yield programs.
Ronaldo’s Influence and Binance’s Legal Issues
The lawsuit highlights the substantial influence of Ronaldo, who has 850 million social media followers, and his role in promoting Binance. The legal action comes as Binance and its founder Changpeng “CZ” Zhao face their own legal issues, including a $4.3 billion settlement for violating anti-money laundering laws and operating an unregistered money transfer business.
Allegations of Lack of Disclosure and SEC Guidance
The plaintiffs allege that Ronaldo failed to disclose the amount he paid to promote the cryptocurrency and violated SEC guidelines. The lawsuit claims that Ronaldo should have known about Binance’s sale of unregistered cryptocurrency securities based on his investment experience. The proposed class action seeks damages and legal fees.
Binance’s Legal Issues
After Binance and CZ pleaded guilty and faced legal consequences, the SEC sued the exchanges, alleging sales of unregistered securities and investigating possible misappropriation of customer funds. Ronaldo’s participation further aggravates the legal issues surrounding Binance.