Cristiano Ronaldo Files Lawsuit Against Binance Partnership: Exploring Legal Ramifications
Famous soccer icon Cristiano Ronaldo is embroiled in legal chaos after a class-action lawsuit was filed alleging he suffered financial losses due to his relationship with cryptocurrency exchange Binance. The lawsuit, filed in Florida District Court on November 27, accuses Ronaldo of facilitating the sale of unregistered securities with Binance under a partnership agreement in mid-2022.
Cristiano Ronaldo’s alleged role in Binance NFT promotion
Collaboration with Ronaldo Binance It involves promoting a series of non-fungible tokens (NFTs) on the platform. However, the lawsuit claims that Ronaldo’s endorsement not only encouraged investment in NFTs, but also drove users to explore other Binance products, including what the plaintiffs allege are unregistered securities such as Binance’s BNB tokens and cryptocurrency yield program. do.
The complaint highlights the significant influence of Ronaldo, who boasts a whopping 850 million followers across several social media platforms. Lawyers argue that Ronaldo’s endorsement has exponentially increased Binance’s profile, as evidenced by the 500% surge in searches for “Binance” following his promotion. According to the claim, Binance was trying to leverage Ronaldo’s positive image to convince consumers of the exchange’s trustworthiness, especially when it comes to cryptocurrency trading.
Also Read: Cristiano Ronaldo and Binance Unveil Third NFT Collection with Exclusive Fan Prizes
Moreover, the lawsuit has raised concerns about Ronaldo’s suitability to endorse financial products, questioning his lack of expertise in investment matters and compliance with Securities and Exchange Commission (SEC) guidelines. The guidelines require celebrities to disclose any compensation they receive for promoting cryptocurrencies, which the plaintiffs claim Ronaldo failed to do.
Plaintiffs Michael Sizemore, Mikey Vongdara and Gordon Lewis seek damages and legal costs in the lawsuit against Ronaldo.
SEC and Ronaldo lawsuit intensify Binance legal problems
At the same time, Binance is facing various legal issues. founder Changpeng Zhao recently pleaded guilty and agreed to a $4.3 billion settlement. We are cooperating with the United States to conduct money laundering and unregistered money transfer operations. Zhao, who stepped down as CEO, faces a potential prison sentence under federal guidelines, and Binance has agreed to compliance monitoring by the Justice and Treasury Departments for up to five years.
In a parallel ordeal, the SEC filed a lawsuit against Binance on various charges, including selling unregistered securities. An ongoing investigation suggests Binance may be misusing customer funds, amplifying the legal complexities surrounding the cryptocurrency exchange.