Crypto Clash: Cristiano Ronaldo Faces Legal Firestorm for Binance Partnership Amid Allegations of Unregistered Securities
Cristiano Ronaldo, the renowned pro-soccer star, finds himself entangled in a proposed class-action lawsuit, accused of promoting Binance, a crypto exchange currently embroiled in legal controversies surrounding unregistered securities. The lawsuit, filed on November 27 in a United States district court in Florida, alleges that Ronaldo actively participated in the offer and sale of unregistered securities in collaboration with Binance.
The legal saga began when Binance inked a multiyear partnership with Ronaldo in mid-2022 to promote a series of nonfungible tokens (NFTs) bearing the soccer star’s name. At least three of these exclusive collections were intricately tied to the embattled crypto exchange. The complaint contends that users who engaged with Ronaldo’s NFTs were more likely to utilize Binance for other purposes, particularly investing in what they claim are unregistered securities, including Binance’s own BNB.
Ronaldo’s significant influence, boasting a staggering 850 million followers across social media platforms, played a pivotal role in propelling Binance’s popularity. The lawsuit asserts that Ronaldo’s NFT sales were remarkably successful, resulting in a 500% surge in searches for Binance in the week following the initial sale. The plaintiffs argue that Ronaldo’s promotions effectively solicited investments in unregistered securities by encouraging his massive following to invest through the Binance platform.
The legal complaint contends that Ronaldo, given his investment experience and vast resources, either knew or should have known about Binance’s alleged sale of unregistered crypto securities. Furthermore, the suit cites U.S. Securities and Exchange Commission (SEC) guidance, which warns celebrities about the necessity of disclosing payments received for promoting cryptocurrencies — allegedly something Ronaldo failed to do.
The class-action lawsuit is spearheaded by Michael Sizemore, Mikey Vongdara, and Gordon Lewis, who are seeking damages and financial support for legal fees. Meanwhile, Binance and its founder, Changpeng “CZ” Zhao, grapple with their own legal challenges. They recently pleaded guilty and agreed to a hefty $4.3 billion settlement with the U.S. government for Anti-Money Laundering law violations and running an unregistered money-transmitting business.
In a dramatic turn of events, Zhao has stepped down as CEO and faces the prospect of up to 18 months in prison. Binance, in a bid to ameliorate its legal standing, has committed to up to five years of compliance monitoring by the U.S. Department of Justice and the Department of the Treasury. Simultaneously, the SEC has taken legal action against Binance, alleging, among other charges, the sale of unregistered securities and reportedly investigating potential misappropriation of customer funds. The convergence of legal challenges involving Ronaldo and Binance has created a compelling narrative that transcends the realms of sports and finance.
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