Cristiano Ronaldo is sued for promoting Binance

Cristiano Ronaldo faces legal action for endorsing Binance

Author: Jesse Coghlan, Cointelegraph; Translation: Song Xue, LianGuai

Professional football star Cristiano Ronaldo is facing a collective lawsuit filed by plaintiffs who claim to have suffered losses due to his promotion of the now legally embroiled cryptocurrency exchange Binance.

A document submitted to a Florida court on November 27 states that Ronaldo “coordinated, facilitated/actively participated in the unregistered securities offering and sale” with Binance.

Ronaldo established a years-long partnership with Binance in 2022, promoting his own series of non-fungible tokens (NFTs), at least three of which were related to Binance.

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The complaint alleges that users who registered Ronaldo’s NFTs were more likely to use Binance for other purposes, including investing in what they claim are unregistered securities, including Binance’s BNB.

“Ronaldo’s activities solicited or assisted Binance in soliciting investments in unregistered securities by encouraging his millions of followers, fans, and supporters to invest through the Binance platform.”

The complaint states that Ronaldo became a key part of Binance’s growing popularity due to his influence, boasting 850 million followers on social media. They claim that his NFT sales were “highly successful” in promoting the exchange, with a 500% increase in searches for “Binance” after the initial sale.

The lawsuit alleges that Ronaldo knew or should have known that “Binance was selling unregistered cryptocurrency securities” due to his “investment experience and access to significant resources from outside advisors.”

The lawsuit references guidance from the U.S. Securities and Exchange Commission, which warns that celebrities need to disclose payments received for promoting cryptocurrencies, but the complaint alleges that Ronaldo did not do so.

The plaintiffs in the collective lawsuit are Michael Sizemore, Mikey Vongdara, and Gordon Lewis, seeking damages and funds for legal fees.

Meanwhile, Binance and its founder Zhao Changpeng face their own legal challenges, having pleaded guilty and paid $4.3 billion in settlement for money laundering charges and operating an unregistered money transfer business in the United States.

Zhao Changpeng has stepped down as CEO and faces a maximum of 18 months in prison. Binance has agreed to five years of compliance monitoring by the Department of Justice and the Treasury Secretary.

The U.S. Securities and Exchange Commission has sued Binance, alleging the sale of unregistered securities, and is investigating whether Binance misappropriated customer funds.

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