Cristiano Ronaldo Faces $1B Lawsuit Over Binance NFT Promotion

In a legal twist, football icon Cristiano Ronaldo confronts a $1 billion class-action lawsuit over his involvement in endorsing non-fungible tokens (NFTs) linked to the embattled cryptocurrency exchange Binance.

Ronaldo's NFT Debut with Binance

Launching his inaugural "CR7" NFT collection with Binance in November last year, Ronaldo showcased animated statues capturing pivotal moments from his life. However, the class-action lawsuit, filed in a federal court in the Southern District of Florida, contends that Ronaldo's promotion of Binance was "deceptive and unlawful."

Allegations and Impact

The lawsuit asserts that Binance's collaboration with high-profile figures, including Ronaldo, lured investors into risky and costly ventures. The plaintiffs argue that Binance's success was propelled by the offer and sale of unregistered securities, facilitated by celebrities like Ronaldo. Allegedly, online searches for "Binance" surged by 500% following the announcement of Ronaldo's NFTs.

Unveiling the Legal Action

The legal action also accuses Ronaldo of failing to disclose the compensation received for the Binance partnership, a violation of federal law according to the U.S. Securities and Exchange Commission.

NFTs and Binance Woes

NFTs, initially a craze, have seen diminished value amidst crypto industry turmoil. Binance, accused of operating as an unregistered securities exchange, recently settled a $4 billion lawsuit. Founder Changpeng Zhao resigned as CEO, pleading guilty to a money laundering-related felony.

Celebrities and Crypto Litigation

This lawsuit echoes previous legal battles involving celebrities and crypto promotions. Last year, figures like Larry David and Tom Brady faced a class-action suit over FTX, the now-collapsed second-largest crypto exchange.

Ronaldo's Stature and Continued Binance Affiliation

As one of the world's wealthiest and most recognizable athletes, Ronaldo, who currently plays for Al Nassr in Saudi Arabia, remains associated with Binance through his official platforms. The lawsuit adds another layer of complexity to the legal landscape surrounding crypto endorsements.

This legal action adds to the growing concerns surrounding celebrity-backed crypto promotions. As regulatory scrutiny intensifies, the fallout from such partnerships may impact the industry's credibility and investor confidence.