Cristiano Ronaldo is himself in a legal struggle as he confronts a planned class-action lawsuit from plaintiffs alleging financial damages as a result of his role in promoting the beleaguered cryptocurrency exchange, Binance.
Ronaldo has been charged with peddling unregistered securities
It is stated in a document presented to a Florida District Court on November 27, 2023, that Cristiano Ronaldo
According to the lawsuit, Ronaldo’s promotion of Binance led to customers investing in what they thought were unregistered securities, such as Binance’s own cryptocurrency, BNB, and its crypto yield schemes.
According to the complaint, Ronaldo’s advertising played a substantial role in soliciting investments in these unregistered instruments, leveraging his large social media following of around 850 million followers.
According to the lawsuit, Ronaldo’s endorsement of Binance’s non-fungible tokens (NFTs) resulted in a significant spike in searches for “Binance” in the week after the inaugural sale, demonstrating the soccer star’s persuasive influence.
Ronaldo’s alleged knowledge and disclosure
The plaintiffs contend that, given his financial skills and large resources, Cristiano Ronaldo should have been aware of Binance’s alleged role in marketing unregistered crypto assets.
The complaint cites Securities and Exchange Commission (SEC) advice that highlights the necessity for celebrities to disclose money received for promoting cryptocurrencies. Ronaldo allegedly neglected to make such declarations, adding to the question surrounding his relationship with Binance.
Three plaintiffs have filed a proposed class-action lawsuit: Michael Sizemore, Mikey Vongdara, and Gordon Lewis. They are requesting compensation for their financial losses as well as monies to compensate the legal expenses involved in pursuing this legal action.
The case highlights the responsibilities and liabilities of cryptocurrency celebrities and influencers, especially when advocating platforms and assets that may be susceptible to governmental investigation.
Binance’s persistent legal difficulties
While Cristiano Ronaldo’s legal situation plays out, Binance and its creator, Changpeng “CZ” Zhao, are dealing with their own legal issues. Binance agreed to a $4.3 billion settlement with US authorities earlier this year in response to money laundering accusations and claims of running an unlicensed money-transmitting company.
As part of the agreement, CZ resigned as CEO and faces up to 18 months in jail. Binance also consented to a five-year compliance monitoring period by the US Justice Department and Treasury.
Furthermore, the SEC has filed a lawsuit against Binance, accusing it of a variety of crimes, including the selling of unregistered securities. The regulatory body is also apparently probing the exchange for possible theft of user cash, complicating the legal environment for one of the world’s major cryptocurrency exchanges.