Crypto Promotion Backlash
An explosive lawsuit filed in Florida targets Cristiano Ronaldo, the renowned soccer star, seeking damages exceeding $1 billion for his involvement in promoting the cryptocurrency exchange Binance. The legal action alleges Ronaldo’s role in encouraging his massive fan base to invest with Binance, contributing to the alleged violation of securities laws in the United States.
Lawsuit Details and Allegations
The lawsuit accuses Binance of dealing in unregistered securities and operating unlawfully within the U.S. market. Plaintiffs argue that Ronaldo, through his celebrity status, contributed to stimulating investments, funnelling traffic, and attracting investors to the platform. Attorney Adam Moskowitz, representing the plaintiffs, emphasized that recent regulatory standards hold individuals like Ronaldo accountable for mass cryptocurrency solicitations, especially if they profit directly from these promotions.
Claims Against Ronaldo and Binance
The lawsuit emphasizes Ronaldo’s extensive reach and influence, alleging that over 100 million Binance users were exposed to his advertisements across various platforms, including television and social media. Furthermore, the suit contends that Ronaldo, due to his investment experience and substantial resources, should have been aware of the potential legal concerns regarding Binance’s sale of unregistered crypto securities.
Ronaldo’s NFT Collaboration and Controversy
The legal action stems from Ronaldo’s partnership with Binance for the “CR7” NFT collection, released ahead of the 2022 World Cup. The premium NFT series featured animated digital statues portraying pivotal moments from Ronaldo’s career. The lawsuit raises concerns about Ronaldo’s promotion of these NFTs, emphasizing the financial benefit he gained while potentially assisting Binance in soliciting investments in unregistered securities.
Impact on Investors and Regulatory Outlook
The plaintiffs’ legal team seeks compensation for investors who have reportedly suffered substantial losses in the cryptocurrency market. This lawsuit underscores the accountability faced by celebrities endorsing crypto assets and the need for transparent disclosures, echoing the recent case involving NBA Hall of Famer Paul Pierce, where the Securities and Exchange Commission (SEC) highlighted the necessity of disclosing endorsements in the investment sphere.
Also Read: Cristiano Ronaldo and Binance Unveil Third NFT Collection with Exclusive Fan Prizes
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