Cristiano Ronaldo Faces $1B Class Action Suit Over Binance Endorsement

Cristiano Ronaldo Faces $1B Class Action Suit Over Binance Endorsement

Soccer star Cristiano Ronaldo finds himself in the midst of a $1 billion class-action lawsuit over his endorsement of cryptocurrency exchange Binance. The lawsuit alleges that Ronaldo played a role in promoting and selling unregistered securities in coordination with Binance. The action is brought on behalf of consumers who purchased these securities and highlights Ronaldo’s involvement in soliciting investments through his large social media following. This legal matter adds to Binance’s existing legal troubles, further tainting the reputation of the popular cryptocurrency exchange.

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Introduction

Soccer star Cristiano Ronaldo, currently playing for Al Nassr FC, is facing a $1 billion class-action lawsuit related to his partnership with cryptocurrency exchange Binance. The suit alleges that Ronaldo assisted in the offer and sale of unregistered securities in coordination with Binance. This article will provide an overview of the lawsuit, the allegations against Ronaldo, and the implications of his promotional activities for Binance.

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Background Information

Cristiano Ronaldo of the Al Nassr Football Club Hit With $1B Class Action Suit Over Binance NFT Promo

Recently, Cristiano Ronaldo, one of the most renowned soccer players in the world, has found himself embroiled in a $1 billion class-action lawsuit. The lawsuit is linked to Ronaldo’s commercial relationship with Binance, a well-known cryptocurrency exchange. Ronaldo is accused of promoting, assisting in, and/or actively participating in the offer and sale of unregistered securities in coordination with Binance.

The Lawsuit and Allegations

The class-action lawsuit was filed on November 28, 2023, in the District Court for the Southern District of Florida, Miami. The lawsuit alleges that Ronaldo promoted the sale of unregistered securities through his association with Binance. The lead plaintiff in the case is Michael Sizemore, a California resident who claims to have purchased unregistered securities from Binance after being exposed to Ronaldo’s misrepresentations and omissions regarding the Binance platforms.

Details of the Lawsuit

The lawsuit seeks to represent consumers who have purchased unregistered securities offered or sold by Binance. The specific allegations against Ronaldo include soliciting investments in these unregistered securities by encouraging his millions of followers, fans, and supporters to invest in the Binance platform. It is claimed that Ronaldo’s promotions were published on public websites, television, and social media accounts accessible to people nationwide, including in Florida.

Lead Plaintiff and Alleged Misrepresentations

The lead plaintiff in the lawsuit, Michael Sizemore, alleges that he bought unregistered securities from Binance after being exposed to Ronaldo’s misrepresentations and omissions regarding the Binance platforms. The lawsuit claims that Ronaldo’s promotions enticed individuals to invest in the Binance platform, leading to potential financial harm for those who purchased the unregistered securities.

Ronaldo’s Promotion of Binance

Ronaldo’s promotional activities for Binance began in 2022 when he partnered with the cryptocurrency exchange to create a non-fungible token (NFT) collection. The NFT collection featured animated figures depicting significant moments from Ronaldo’s career. The lawsuit alleges that Ronaldo’s promotions actively solicited investments in unregistered securities by encouraging his millions of followers, fans, and supporters to invest through the Binance platform.

Scope of Ronaldo’s Promotions

According to the lawsuit, Ronaldo’s promotions were widespread and accessible to individuals nationwide, including in Florida. The promotions were published on public websites, television, and social media accounts, reaching a broad audience. In exchange for his services, Ronaldo is believed to have received a substantial total compensation package that likely included compensation in the form of digital assets transmitted through the Binance platforms.

Securities Laws and Celebrity Endorsements

The lawsuit cites prior warnings from the U.S. Securities and Exchange Commission (SEC) that virtual tokens may be considered securities. It also highlights the obligation of celebrities to disclose when they are being paid to promote securities. The allegations against Ronaldo suggest that he failed to comply with these securities laws and regulations by promoting unregistered securities without disclosing his compensation.

Previous Legal Issues with Binance

This lawsuit comes amidst a series of legal challenges faced by Binance. In June, the SEC sued Binance and its founder Changpeng Zhao for allegedly violating federal securities laws. Additionally, Binance recently agreed to pay $4.3 billion to settle charges brought by U.S. prosecutors related to alleged violations of sanctions and money-transmitting laws. These legal issues have raised concerns about Binance’s compliance with regulatory requirements and its practices regarding the sale of securities.

Conclusion

Cristiano Ronaldo’s association with Binance has resulted in a $1 billion class-action lawsuit alleging his involvement in the offer and sale of unregistered securities. The lawsuit raises questions about the extent of Ronaldo’s promotional activities for Binance and whether he complied with securities laws and regulations. This case adds to the legal challenges faced by Binance, highlighting the need for greater transparency and compliance in the cryptocurrency industry. The outcome of this lawsuit could have significant implications for both Ronaldo and Binance, potentially shaping the future of celebrity endorsements in the world of cryptocurrencies.

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