Ronaldo Slapped with $1B Lawsuit Over Binance Endorsement

Jonathan Stoker Dec 01, 2023, 20:20pm 112 views

Ronaldo Slapped with $1B Lawsuit Over Binance Endorsement

Cristiano Ronaldo Linked to a $1 Billion Class-Action Lawsuit with Binance

The football superstar Cristiano Ronaldo is currently facing a class-action lawsuit amounting to $1 billion. This lawsuit is associated with his business partnership with the cryptocurrency exchange, BinanceBinance. Filed on November 28 in the District Court for the Southern District of Florida, in Miami, the lawsuit accuses Ronaldo of endorsing, aiding and partaking in the sales and offers of unregistered securities for Binance.

The Lawsuit Details

The lawsuit aims to represent the consumers who purchased unregistered securities offered or sold by Binance. The lead accuser in this case has been identified as Michael Sizemore, a resident of California. Sizemore allegedly made purchases of unregistered securities from Binance after being influenced by the defendant's misrepresentations and omissions regarding the Binance platforms.

The legal documents suggest that Mr. Ronaldo's promotions persuaded or assisted Binance in soliciting investments in unregistered securities by encouraging his millions of followers, fans, and supporters to invest with the Binance platform.

The lawsuit only adds to the mounting legal issues faced by Binance. In June, the U.S. Securities and Exchange Commission filed a lawsuit against Binance, Binance.US's operating company, and its founder Changpeng CZ Zhao for allegations of violating federal securities laws. In a separate case last week, Binance agreed to pay $4.3 billion to settle charges related to alleged violations of breaking sanctions and money-transmitting laws.

Ronaldo's Partnership with Binance

In 2022, Ronaldo teamed up with Binance for the development of a non-fungible token (NFT) collection. This collection featured animated figures that depicted moments from his career. He is accused of soliciting investments in unregistered securities by appealing to his millions of followers, fans, and supporters to invest with the Binance platform.

The lawsuit further states Mr. Ronaldo's promotions were published on public websites, television and social media accounts accessible to plaintiffs nationwide, including in Florida. In exchange for his services, it is believed that Mr. Ronaldo received a substantial total compensation package which likely included compensation in the form of digital assets transmitted through the Binance platforms.

The lawsuit also referred to prior warnings issued by the SEC that virtual tokens could be classified as securities. It also highlighted the need for celebrities to disclose if they are being compensated to endorse securities.

Edited by Jonathan Stoker

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