Renowned global football icon Cristiano Ronaldo is currently facing legal action, initiated in a Florida District Court on November 27, 2023, for his association with the promotion of Binance. The lawsuit, filed by Michael Sizemore, Mikey Vongdara, and Gordon Lewis, alleges financial losses incurred by the plaintiffs due to Ronaldo's endorsements of the platform. Binance itself is under scrutiny for purported lapses in implementing adequate anti-money laundering measures, compounded by recent demands for a $4.3 billion settlement by U.S. authorities.
According to the legal documentation, Ronaldo is accused of actively participating in the promotion and sale of unregistered securities in collaboration with Binance. Ronaldo, who entered into a multi-year partnership with the exchange in mid-2022, was slated to promote a series of his Non-Fungible Tokens (NFTs). The lawsuit contends that users who engaged with Ronaldo's NFT collection were more inclined to use the exchange for other activities, including the acquisition of unregistered securities like the BNB token and the exchange's yield programs.
The filing asserts that Ronaldo's promotional efforts encouraged investments in unregistered securities by leveraging his extensive following and influence. Additionally, the lawsuit claims that Ronaldo, given his investment experience and substantial resources, should have been aware of Binance's alleged sale of unregistered crypto securities.
Furthermore, the lawsuit highlights a failure to disclose payments received from Binance, contravening the Securities and Exchange Commission's (SEC) guidance for celebrities endorsing cryptocurrencies. Ronaldo's legal entanglement adds another layer to Binance's ongoing challenges, with its CEO, Changpeng Zhao (CZ), recently admitting guilt to money-laundering charges and agreeing to step down from his role at the helm of the company.
Raj, P.M. (2023) Cristiano Ronaldo sued for promoting binance, Watcher Guru. Available at: https://watcher.guru/news/footballer-cristiano-ronaldo-faces-lawsuit-for-promoting-binance (Accessed: 29 November 2023).