Ronaldo is accused of encouraging and taking part in the sale of unregistered securities.
In mid-2022, Binance and Ronaldo began a multi-year collaboration.
The world-renowned footballer Cristiano Ronaldo is embroiled in a class action lawsuit that claims he caused investor losses via promotion of the crypto exchange Binance. Ronaldo is accused of encouraging and taking part in the sale of unregistered securities on the Binance exchange in a complaint that was filed in a Florida District Court on November 27th.
In mid-2022, Binance and Ronaldo began a multi-year collaboration to market a number of Ronaldo’s NFTs, with three of the star’s collections associated with Binance. Signups for Ronaldo’s NFTs allegedly increased the likelihood that users would use Binance for other reasons, including as investing in what the lawsuit describes as unregistered securities.
Seeking Damages and Attorney Expenses
Moreover, according to the lawsuit, Ronaldo’s 850 million social media followers were instrumental in Binance’s meteoric rise to fame. Also, they claim that the NFT sales he did were “incredibly successful” in drawing attention to the exchange; in the week after the sale, searches for Binance increased by 500%.
As per the complaint, Ronaldo knew or should have known that Binance was offering unregistered crypto assets because of his extensive knowledge of investing and his ability to hire outside consultants.
Furthermore, Ronaldo was accused of failing to disclose money received for endorsing cryptocurrencies, as stated in the lawsuit, which relies on United States SEC regulations. Gordon Lewis, Mikey Vongdara, and Michael Sizemore are the class action plaintiffs suing for damages and attorney expenses.
The SEC has also filed a lawsuit against Binance. Moreover, Binance is allegedly under investigation by the SEC into allegations of client money misappropriation and unregistered securities sales, among other accusations.