Football icon Cristiano Ronaldo is facing a potential class action lawsuit over allegations that his support for leading cryptocurrency exchange Binance resulted in significant investor losses. The lawsuit, filed in Florida District Court on November 27, 2023 by plaintiffs Michael Sizemore, Mikey Vongdara and Gordon Lewis, alleges that Ronaldo’s relationship with Binance caused financial losses to investors.
Ronaldo’s collaboration with Binance, which began in 2022 to promote non-fungible tokens (NFTs), forms the core of the legal case. The complaint alleges that by promoting these tokens, Ronaldo unintentionally encouraged users to use Binance for investment purposes, including purchasing unregistered securities such as BNB tokens and the exchange’s yield program.
The lawsuit alleges that Ronaldo’s social media influence, with more than 850 million followers across various platforms, has significantly boosted Binance’s visibility and attracted unsuspecting people to the platform. This surge in engagement, especially following Ronaldo’s initial NFT sale, reportedly led to a significant 500% increase in online searches for “Binance.”
The accusation against Ronaldo claims that as a prominent figure in the financial world, he should have been aware of the allegations that Binance was involved in the sale of unregistered securities. The plaintiffs claim that Ronaldo’s stature and investment knowledge allowed him to be alerted to potential legal issues related to Binance’s operations.
This legal action comes amid ongoing difficulties faced by Binance and its founder Changpeng Zhao (CZ). The exchange has been under investigation for violating money laundering regulations and operating without proper licensing, resulting in significant financial penalties. In response, CZ resigned as CEO and is now facing potential legal repercussions, including 18 months in prison.
The lawsuit seeks compensation for losses suffered by investors who transacted with Binance following Ronaldo’s promotional activities. It highlights concerns about the platform’s compliance with anti-money laundering measures and the alleged sale of unregistered securities, and aims to hold both Ronaldo and Binance accountable for the financial losses experienced by investors.
This legal action against Cristiano Ronaldo has important implications for celebrities endorsing financial products and highlights the need for thorough due diligence and accountability. As the case progresses, it could set a precedent for accountability of influential figures who support platforms dealing with cryptocurrencies and other financial products.
This case is similar to the ongoing JPEX lawsuit and also includes allegations of false endorsements from celebrities.