Cristiano Ronaldo Faces Class-Action Lawsuit for Binance NFTs

Cristiano Ronaldo is currently facing a class-action lawsuit in the United States. He is accused of promoting unregistered securities through Binance, thrusting the world of football into financial turmoil.

Cooking something up with @binance https://t.co/FMAP5GAdxE

— Cristiano Ronaldo (@Cristiano) November 28, 2023

Ronaldo’s NFTs Seen as Catalysts for Risky Investments on Binance

It has been exactly one year to the day since Cristiano Ronaldo announced the launch of his first NFT collection on Binance. Unfortunately, the football star is now at the center of a financial controversy with the crypto exchange.

A reference is made to this class-action lawsuit filed in the United States District Court in Florida on November 27. According to the case, Ronaldo’s NFTs could have enticed his millions of followers to invest in unregistered securities on Binance. This puts (once again) the legitimacy of the crypto exchange at risk!

Analysis: The NFTs could have served as a gateway to draw Ronaldo’s fans towards Binance.

The complaint emphasizes that Ronaldo’s followers, spurred by his promotions, were more inclined to use Binance for transactions involving unregistered securities. This includes Binance’s BNB and its crypto yield programs.

The plaintiffs insist on Ronaldo’s key role in increasing the popularity of the exchange, highlighting his 850 million social media followers. Ronaldo’s NFT sales generated significant excitement, increasing searches for Binance by 500% in the week following the initial sale.

Violation of Crypto Laws?

The rising popularity of Binance, fueled by Ronaldo’s “incredibly successful” NFT sales, is overshadowed by allegations of violating crypto laws. The lawsuit is based on Ronaldo’s alleged failure to disclose his financial ties with Binance.

This violates SEC guidelines that require celebrities to disclose payments related to the promotion of crypto. According to the plaintiffs, this omission could have led investors to participate in risky crypto transactions without an adequate understanding of the financial implications.

The ongoing case inevitably casts a shadow on Ronaldo’s brand image, but not only! It also raises questions about Binance’s strategies, which are already involved in another legal battle with the DOJ.