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The plaintiffs in a proposed class-action lawsuit against well-known soccer player Cristiano Ronaldo claim they suffered damages as a result of their sponsorship of the complexly regulated cryptocurrency exchange Binance.
Ronaldo was accused of actively supporting the sale of unregistered securities in partnership with Binance in a filing made on November 27 to a United States federal court in Florida. According to the complaint, consumers may have interacted with Binance as a result of Ronaldo’s endorsement and invested in what the plaintiffs view as unregistered securities, such as Binance’s own cryptocurrency, BNB, and its crypto yield schemes.
Binance entered into a multiyear partnership with Cristiano Ronaldo in mid-2022, focusing on the promotion of the soccer star’s nonfungible tokens (NFTs). At least three of Ronaldo’s NFT collections were associated with Binance. The lawsuit contends that Ronaldo’s promotions encouraged his millions of followers to invest with the Binance platform, thereby playing a significant role in the exchange’s popularity surge.
The complaint asserts that Ronaldo, with his extensive influence and 850 million social media followers, should have been aware of Binance’s activities, especially in selling what the plaintiffs claim are unregistered crypto securities. The lawsuit highlights Ronaldo’s investment experience and resources to obtain external advice.
Citing guidance from the U.S. Securities and Exchange Commission (SEC) warning celebrities about the necessity to disclose payments for promoting cryptocurrencies, the lawsuit claims Ronaldo failed to make such disclosures. The SEC guidance emphasizes the responsibility of celebrities to inform the public about their financial interests in endorsed products or services.
The proposed class-action lawsuit is brought forth by Michael Sizemore, Mikey Vongdara, and Gordon Lewis, who seek damages and financial support for legal fees. The legal challenge underlines the potential repercussions for celebrities engaging in the promotion of cryptocurrency projects without proper disclosure or consideration of regulatory guidelines.