Cristiano Ronaldo Faces Class-Action Lawsuit Regarding Troubled Binance Promotion

Cristiano Ronaldo, faces a class-action lawsuit (photo: x @binance)

JAKARTA - Portuguese soccer star Cristiano Ronaldo is facing a class-action lawsuit filed by the plaintiffs who claim to have suffered losses due to his promotion to the Binance crypto exchange which is currently involved in legal matters.

In a lawsuit on November 27 to the United States district court in Florida, it was claimed Ronaldo "promoted, helped, and/or actively participated in offerings and sale of securities without registration coordinating with Binance."

Binance entered into a multi-year partnership with Ronaldo in mid-2022 to promote a series of his non-fungible tokens (NFTs), with at least three collections of soccer stars linked to Binance.

The lawsuit states that users who register for Ronaldo's NFT are more likely to use Binance for other purposes, such as investing in what they claim to be unregistered securities, including BNB (binance symbols) and crypto yield programs.

" Ronaldo's promotion to consolidate or assist Binance in socializing investment in securities without registration by encouraging millions of his followers, fans, and supporters to invest in the Binance platform."

Cooking something up with @Cristiano…Stay tuned. pic.twitter.com/OxqJ435bp3

— Binance (@binance) November 28, 2023

Cooking something up with @Cristiano...Stay tuned.pic.twitter.com/OxqJ435bp3

Ronaldo is a key part of Binance's popularity due to its influence and reach, with 850 million followers across social media, according to lawsuit claims. They claim its NFT sales were "very successful" in promoting the exchange, with an increase in Binance searches by 500% a week after early sales.

The lawsuit claims that Ronaldo knows or should know "about Binance selling crypto securities without registration," as he has "extensive investment experience and resources to gain external counsel."

The lawsuit cites a guide to the United States Securities and Exchange Commission (SEC) warning celebrities of the need to disclose the payments received to promote cryptocurrencies, which Ronaldo said the lawsuit was not in place.

Plaintiffs in this class-action lawsuit are Michael Sizemore, banyak Vongdara, and Gordon Lewis, who seek compensation and funds to cover legal costs.

Meanwhile, Binance and its founder Changpeng "CZ" Zhao faced their own legal problems, pleaded guilty and paid a settlement of $4.3 billion to the US government for violating Anti-Money Laundering laws and running an unregistered remittance business.

Zhao has resigned as CEO and faces up to 18 months in prison. Binance has agreed to be monitored for up to five years by the Department of Justice and the United States Department of Finance.

The SEC has also sued Binance, stating among other allegations that Binance sells securities without registration and is being investigated whether Binance misuses customer funds.