Cristiano Ronaldo Faces Lawsuit over Controversial Endorsement of Crypto Exchange Binance
Summary:
A potential class-action lawsuit has been filed against Cristiano Ronaldo for his role in endorsing the controversial cryptocurrency exchange, Binance. The plaintiffs claim losses resulting from his promotion of what they allege as unregistered securities. Meanwhile, Binance and its founder Changpeng “CZ” Zhao are facing their own legal troubles, having pleaded guilty to money laundering charges and operating an unregistered business, resulting in a $4.3 billion US settlement.
A potential class-action lawsuit has been filed against football icon Cristiano Ronaldo, with plaintiffs arguing that they incurred losses through his endorsement of the controversial cryptocurrency exchange, Binance. The documentation, submitted to a Florida District Court on November 27, alleges that Ronaldo played a significant part in the marketing and sales of unlisted securities in complicity with Binance. Ronaldo and Binance formed a multi-year alliance in mid-2022, with the purpose for the football star to introduce a series of his Non-Fungible Tokens (NFTs); he has a minimum of three groupings affiliated with Binance. The plaintiffs state that those who registered for these NFTs were likely to utilize Binance for other transactions that included investments believed to be unregistered securities, encompassing Binance's BNB (BNB) and related crypto yield activities. They argue that Ronaldo's promotion appealed to his multitudes of fans to invest through the Binance platform, thereby enhancing the exchange's growing visibility and appeal. The suit contends that Ronaldo was aware, or ought to have been aware of Binance's sale of unregistered crypto securities, given his investment know-how and access to professional advice. Named plaintiffs - Michael Sizemore, Mikey Vongdara, and Gordon Lewis, are in pursuit of damages and reimbursement of legal fees. Concurrently, Binance and its founder, Changpeng “CZ” Zhao are navigating their own legal challenges, having pled guilty to money laundering charges and operating an unregistered business, incurring a $4.3 billion US settlement. Zhao has since stepped down as CEO and could face up to 18 months imprisonment. Additionally, the SEC has taken legal action against Binance for various accusations, including the sale of unregistered securities and mishandling customer funds.
Published At
11/29/2023 5:17:00 AM
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