In a startling turn of events, football legend Cristiano Ronaldo finds himself entangled in a class-action lawsuit, demanding a staggering $1 billion in damages. The legal battle revolves around Ronaldo’s promotion of non-fungible tokens (NFTs) issued by the troubled cryptocurrency exchange, Binance. Filed in the federal court of the Southern District of Florida, the lawsuit alleges deceptive and unlawful practices in Ronaldo’s endorsement of Binance, suggesting that it led unsuspecting investors into costly and precarious ventures.
Allegations Against Ronaldo and Binance
The plaintiffs contend that Binance’s collaboration with influential figures like Ronaldo played a pivotal role in steering individuals towards questionable and financially detrimental investments. The lawsuit posits that Binance’s fraudulent activities, including the sale of unregistered securities, found accomplices in globally recognized organizations and celebrities, with Ronaldo at the forefront.
Unraveling Ronaldo’s NFT Collection
Ronaldo’s foray into the world of NFTs commenced with the launch of his inaugural collection, titled “CR7,” in collaboration with Binance in November of the previous year, just ahead of the 2022 World Cup. This collection featured seven animated statues capturing various moments from Ronaldo’s illustrious career, with prices ranging from approximately $77 to a staggering $10,000.
The lawsuit highlights the immense success of Ronaldo’s promotional efforts, citing a remarkable 500% surge in online searches for the keyword “Binance” following the announcement of the footballer’s NFTs. Premium-level NFTs from the collection purportedly sold out within the first week, underscoring the widespread impact of Ronaldo’s association with Binance.
Lack of Disclosure and Regulatory Scrutiny
One of the central accusations in the lawsuit is the alleged failure on Ronaldo’s part to disclose the financial details of his partnership with Binance. The U.S. Securities and Exchange Commission‘s (SEC) stipulation that celebrities must publicly disclose their compensation for promoting securities, including crypto assets, is brought into focus. The suit contends that Ronaldo, by not disclosing the extent of his financial ties with Binance, may have violated federal law.
NFTs: A Rise and Fall
Non-fungible tokens, once the darlings of the digital collectibles market, have witnessed a tumultuous journey. NFTs, essentially digital images with unique version numbers stored on a blockchain, experienced a meteoric rise before facing a sharp decline in value amid scandals and market upheavals within the broader crypto industry.
Binance’s Troubles and Regulatory Consequences
Binance, the world’s largest cryptocurrency exchange, has been grappling with regulatory challenges. Earlier this year, the exchange faced allegations of operating as an unregistered securities exchange and violating U.S. securities laws, leading to a substantial $4 billion settlement. Founder Changpeng Zhao‘s resignation as CEO and a guilty plea related to money-laundering charges further underscored the severity of the legal scrutiny.
Celebrity Crypto Promotions: A Legal Precedent
Ronaldo’s legal entanglement is not an isolated case. The crypto industry has witnessed similar legal battles involving celebrities. Last year, Hollywood and sports stars, including Larry David and Tom Brady, faced a class-action suit over their promotion of the now-collapsed FTX crypto exchange. This lawsuit argued that the celebrities’ status made them accountable for endorsing a failed business model.
Ronaldo’s Ongoing Association with Binance
Despite the legal turmoil, Ronaldo continues to endorse Binance on various platforms, including his official website and social media accounts. A recent repost on Twitter, where Ronaldo hinted at collaborating with Binance, indicates an ongoing relationship between the football icon and the embattled cryptocurrency exchange.
Conclusion
As the legal saga unfolds, the intersection of sports, celebrity endorsements, and the volatile crypto industry takes center stage. Ronaldo’s role in promoting Binance’s NFTs has not only sparked a billion-dollar legal battle but also raised critical questions about the responsibility of celebrities in endorsing financial products. The repercussions of this lawsuit could reverberate across the crypto landscape, shaping the future landscape of celebrity endorsements in the digital asset realm.
