Professional soccer star Cristiano Ronaldo has been the subject of a proposed class-action lawsuit by plaintiffs who claim they suffered losses from his promotion of the now legally involved cryptocurrency exchange Binance.
A Nov. 27 filing in a Florida District Court stated that Ronaldo "promoted, assisted and/or actively participated in the offer and sale of unregistered securities in coordination with Binance."
Binance signed a multi-year partnership with Ronaldo in mid-2022 to promote a series of its own non-fungible tokens (NFTs), of which it has at least three collections linked to Binance.
The complaint claims that users who registered for Ronaldo NFTs were more likely to use Binance for other purposes, including investing in what they claimed were unregistered securities, including Binance's BNB (BNB) and its crypto performance programs.
"Ronaldo's promotions solicited or assisted Binance in soliciting investments in unregistered securities by encouraging his millions of followers, fans and supporters to invest on the Binance platform."
Ronaldo was a key part of Binance's growing popularity due to his influence and reach, with 850 million followers on social media, the complaint says. They allege that their NFT sales were โincredibly successfulโ in promoting the exchange, with a 500% increase in searches for โBinanceโ the week following the initial sale.
Cook something with @binance https://t.co/FMAP5GAdxE
-Cristiano Ronaldo (@Cristiano) November 28, 2023
The lawsuit alleges that Ronaldo knew or should have known "that Binance sells unregistered crypto securities," as he has "investment experience and vast resources to obtain outside advisors."
Related: Why Binance's US Plea Deal Could Be Positive for Crypto Adoption
The lawsuit cited guidance from the Securities and Exchange Commission, who warned celebrities of the need to disclose payments received for promoting cryptocurrencies, something that, according to the complaint, Ronaldo did not do.
The plaintiffs in the class action lawsuit are Michael Sizemore, Mikey Vongdara and Gordon Lewis, who are seeking damages and funds to cover legal fees.
Meanwhile, Binance and its founder Changpeng โCZโ Zhao are facing their own legal troubles, pleading guilty and paying a $4.3 billion settlement to the United States on charges of money laundering and running a money transmission business. not registered.
Zhao resigned as CEO and faces up to 18 months in prison. Binance agreed to up to five years of compliance oversight from the Department of Justice and Treasury.
The SEC has sued Binance alleging, among other charges, that it sold unregistered securities and is reportedly investigating whether Binance embezzlement of client funds.
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