Benzinga - Portuguese professional soccer star Cristiano Ronaldo has been named in a class-action lawsuit filed in a United States district court in Florida, that centers around his involvement in promoting the cryptocurrency exchange Binance (CRYPTO: BNB).
The suit, filed on Nov. 27, 2023, stated that in 2022, Ronaldo entered into a multi-year partnership with Binance, involving the launch of his first-ever NFT (Non-Fungible Token) collection.
As part of this agreement, Ronaldo became a paid spokesperson for Binance, participating in the company's global advertising campaign.
The promotional materials featuring Ronaldo were disseminated through various public channels, including websites, television, and social media platforms, reaching a broad audience including plaintiffs in Florida and other locations nationwide.
Allegations Against Ronaldo:
The lawsuit alleges that Ronaldo engaged in a "sustained and aggressive" promotion and advertising campaign for Binance. It is claimed that these promotions were not only deceptive but also unlawful.
Benzinga has contacted representatives of Ronaldo and Binance for a statement and is currently awaiting their reply.
The plaintiffs assert that Ronaldo had financial incentives to induce class members to invest in Binance and to trust the platform.
Furthermore, the lawsuit contends that Ronaldo either knew or should have known that he was soliciting or assisting Binance in soliciting investments in unregistered securities, thereby aiding and abetting Binance's alleged fraud and conversion.
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The promotions, according to the suit, were directed specifically at plaintiffs in Florida and other customers across the United States.
The lawsuit states that Ronaldo significantly contributed to Binance's rise in popularity, bolstered by his extensive social media following of 850 million.
The complaint highlights that his promotion of NFTs greatly benefited the exchange, evidenced by a 500% surge in Binance searches post the initial NFT sale.
Furthermore, the lawsuit references SEC guidelines advising celebrities to disclose any compensation for endorsing cryptocurrencies, which, according to the complaint, Ronaldo failed to do.
Binance and its CEO Changpeng Zhao are confronting separate legal issues.
They have admitted guilt and agreed to a $4.3 billion settlement with the U.S. government, addressing charges related to breaching Anti-Money Laundering regulations and operating an unlicensed money transmission business.
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