Cristiano Ronaldo Is the Subject of a Huge Class Action Lawsuit Related to Its Promotion of Cryptocurrency Exchange binance.
The Portuguese soccer star partnered with Binance last year, lending his name to the 'CR7 Collection' of non-fungible tokens (NFT). As part of the promotion, Ronaldo said the NFTs would reward his fans for “all the years of support.”
However, a group of plaintiffs in the United States now claim that Ronaldo's endorsement pushed them to make reckless investment decisions. the group is claiming damages exceeding one billion dollars.
Why are they suing Cristiano Ronaldo?
Last November, Binance announced the launch of a “exclusive and multi-year association” with Ronaldo which was explicitly designed to introduce his fans to the world of NFTs.
"It was important to me to create something memorable and unique for my fans, as they are a very important part of my success," a statement from Ronaldo read.
"With Binance, I was able to do something that not only captures the passion of the game, but also rewards fans for all the years of support."
However, a group of investors claims that they were deceived by CR7's promotion and led to decisions that generated losses. A Florida district court agreed to hear his case.
TO presentation to the court, on behalf of the plaintiffs, states that Ronaldo “promoted, assisted and/or actively participated in the offer and sale of unregistered securities in coordination with Binance.”
Ronaldo-approved NFTs are virtual assets generated and shared on blockchain networks, but they have no form in the “real world.” A number of Major football clubs have dabbled in NFTs. and players such as Arsenal, Barcelona and AC Milan have teamed up with controversial “fan token” creators, Socios.