May 29, 2024
Cristiano Ronaldo's NFT Deal with Binance Lands Him in Lawsuit
Policy & Regulation

Cristiano Ronaldo’s NFT Deal with Binance Lands Him in Lawsuit

In a legal twist, global football sensation Cristiano Ronaldo finds himself entangled in a class-action lawsuit filed in a Florida District Court on November 27th. The suit alleges that Ronaldo’s endorsement of the cryptocurrency exchange Binance led to substantial investor losses, accusing him of actively participating in the sale of unregistered securities on the platform.

The lawsuit centres around Binance’s strategic partnership with Ronaldo to promote his non-fungible token (NFT) collections, a collaboration that aimed to leverage the footballer’s massive influence for the exchange’s benefit. The claim contends that Ronaldo’s endorsement played a pivotal role in attracting unsuspecting investors to Binance, where they were allegedly enticed into investing in unregistered securities.

The NFT sales associated with Ronaldo’s partnership reportedly resulted in a resounding success for Binance, marked by a staggering 500% increase in searches for the platform in the week following the initial sale. The lawsuit asserts that Ronaldo’s significant social media following, totalling 850 million, was crucial in promoting Binance and its activities.

The accusers argue that Ronaldo, given his extensive investment background and access to top-tier advisors, should have been aware or at least should have known about Binance’s alleged involvement in selling unregistered crypto securities. The complaint suggests that Ronaldo’s promotions actively encouraged his millions of followers to invest in the Binance platform, thereby soliciting investments in what the lawsuit claims are unregistered securities.

The aggrieved investors, Michael Sizemore, Mikey Vongdara, and Gordon Lewis, are seeking financial compensation and funds to cover their legal expenses as they pursue justice in the class-action lawsuit against Cristiano Ronaldo and Binance. This legal saga sheds light on the complexities surrounding celebrity endorsements in cryptocurrency and raises questions about the responsibility associated with promoting financial products to a massive audience.

Image: Wallpapers.com

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