On November 27, 2023, the Florida district court initiated legal proceedings, involving international football icon Cristiano Ronaldo in an ongoing legal dispute related to cryptocurrency. The lawsuit alleges that Ronaldo's endorsement of the Binance cryptocurrency exchange played a crucial role in luring investors who incurred significant losses due to the sale of unregistered securities on the platform.
Binance-Ronaldo Collaboration
Binance, the world's largest cryptocurrency exchange, had engaged in several long-term partnerships with Ronaldo to promote non-fungible token (NFT) collections since mid-2022. These digital collectibles were linked to Binance's platform, strategically utilizing Ronaldo's widespread popularity to attract new users. In addition to Ronaldo, Binance also formed partnerships with three other prominent football players.
On November 28, 2023, Cristiano Ronaldo teased a collaboration with @binance, sharing his excitement with the tweet: "Cooking something up with @binance https://t.co/FMAP5GAdxE."
The lawsuit against Ronaldo stems from a user complaint. According to the claim, individuals who registered for Ronaldo's NFTs on Binance were more likely to engage in other platform activities, such as investing in what they argue are unregistered securities, including Binance's BNB and its crypto yield programs.
"Ronaldo's promotions solicited or assisted Binance in soliciting investments in unregistered securities by encouraging his millions of followers, fans, and supporters to invest with the Binance platform."
Impact of Ronaldo's Influence on Binance's Growth
The legal complaint asserts that Ronaldo's immense influence, with a staggering 850 million followers across social media platforms, significantly contributed to Binance's remarkable growth. The lawsuit alleges that Ronaldo's NFT sales effectively promoted the exchange, leading to an impressive 500% surge in searches for "Binance" in the week following the initial sale.
The legal action asserts that Cristiano Ronaldo was aware or should have been aware of Binance's sale of unregistered crypto securities, considering his investment expertise and ample resources to seek external advice.
Referring to directives from the U.S. Securities and Exchange Commission (SEC), the complaint underscores the obligation for celebrities to disclose payments received for endorsing cryptocurrencies. As per the lawsuit, Ronaldo neglected to fulfill such disclosure requirements.
