Emmanuel OchayiPortuguese Star, Cristiano Ronaldo finds himself at the center of $1 billion class action lawsuit from Binance, the largest Cryptocurrency exchange in the world.
The lawsuit, brought forth by plaintiffs claiming losses due to his endorsement of Binance,, has sent shockwaves through both the sporting and financial realms.
The legal action alleges that Ronaldo’s association with Binance lured investors into making what they term as “loss-making investments.” The plaintiffs seek damages surpassing $1 billion (£790 million) due to the purported misleading nature of Ronaldo’s promotional activities.
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“When celebrities endorse investment opportunities, including crypto asset securities, investors should be careful to research if the investments are right for them, and they should know why celebrities are making those endorsements,” emphasized SEC Chair Gary Gensler, highlighting the responsibility celebrities bear in such endorsements.
According to BBC, the five time ballon d’or winner’s connection with Binance dates back to the announcement of the “CR7” collection of non-fungible tokens (NFTs) in November 2022. The footballer, in a social media video, touted the partnership, claiming it would revolutionize the NFT game and elevate football to new heights.
However, the lawsuit contends that this promotion led to a significant surge in searches for Binance and subsequently resulted in investments in what they label as “unregistered securities,” notably Binance’s BNB cryptocurrency.
The lawsuit’s focal point extends beyond Ronaldo, underscoring broader regulatory concerns in the evolving financial landscape. Nigel Green, CEO of DeVere Group, emphasized the need for regulators to establish clearer guidelines for such scenarios rather than pinpointing blame on the footballer.
Amidst these legal challenges, Ronaldo hinted at future collaborations with Binance through a recent social media post, stating they are “cooking something up.”
However, this optimism contrasts with the recent turmoil surrounding Binance. The firm faced a stern $4.3 billion penalty and forfeiture by the US Justice Department, accused of aiding users in skirting global sanctions and facilitating illicit money movement.
This lawsuit against Ronaldo adds to the growing legal troubles faced by high-profile entities, as Major League Baseball, Formula 1, and Mercedes-Benz confront class action suits filed concurrently over their association with the failed crypto exchange FTX.
The convergence of sports, finance, and legal wrangles underscores the complexities surrounding celebrity endorsements in the evolving world of cryptocurrencies, propelling the debate on accountability and regulatory oversight into the limelight.
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