Football superstar Cristiano Ronaldo is facing a class-action lawsuit seeking damages of at least $1 billion over his endorsement of cryptocurrency exchange Binance. The lawsuit alleges that Ronaldo promoted and participated in the sale of unregistered securities, in violation of U.S. securities laws. The lead plaintiff, Michael Sizemore, claims to have purchased unregistered securities from Binance. This lawsuit adds to the legal troubles faced by Binance, which is already under investigation by the Securities and Exchange Commission (SEC) and recently settled with U.S. prosecutors.
The lawsuit accuses Ronaldo of soliciting investments in unregistered securities through his endorsement of Binance. His promotions allegedly encouraged his millions of followers to invest in the cryptocurrency exchange. The lawsuit highlights the Securities and Exchange Commission’s warnings about virtual tokens constituting securities and the need for celebrities to disclose when they are paid to promote securities.
- The lawsuit represents consumers who purchased unregistered securities from Binance, and Michael Sizemore, a California resident, is the lead plaintiff.
- Sizemore alleges that he suffered financial losses as a result of investing in these securities.
Ronaldo partnered with Binance in 2022 to create a non-fungible token (NFT) collection called “CR7.” The NFT collection featured animated statues depicting iconic moments from Ronaldo’s life and was highly successful. The lawsuit claims that Ronaldo received a substantial compensation package, likely including digital assets transmitted through Binance.
This lawsuit could further complicate the legal situation for Binance, which is already facing scrutiny from the SEC and settled with U.S. prosecutors for $4 billion for violating securities laws. Binance’s founder also stepped down as CEO as a result of these legal issues.
Cristiano Ronaldo is facing a significant legal challenge in the form of a $1 billion class-action lawsuit related to his endorsement of Binance. The outcome of this lawsuit will have implications for both Ronaldo and Binance, as it may impact their reputations and financial situations.