Cristiano Ronaldo is facing a proposed class-action lawsuit for allegedly promoting unregistered securities through his association with the troubled crypto exchange Binance. The lawsuit, filed on November 27 in a Florida District Court, accuses Ronaldo of actively participating in the sale of unregistered securities in collaboration with Binance.
The legal action stems from Binance’s multi-year partnership with Ronaldo in 2022, where he promoted his nonfungible tokens (NFTs) tied to the exchange. The complaint argues that individuals who purchased Ronaldo’s NFTs were more likely to engage in other activities on Binance, including investing in what the plaintiffs claim are unregistered securities like Binance’s BNB token and its crypto yield programs.
The lawsuit asserts that Ronaldo’s promotions effectively encouraged Binance to solicit investments in unregistered securities by leveraging his massive social media following of 850 million fans. The complaint suggests that Ronaldo’s NFT sales significantly boosted Binance’s popularity, leading to a 500% increase in searches for “Binance” in the week following the initial sale.
The legal action alleges that Ronaldo, given his investment experience and ample resources, should have been aware of Binance’s alleged sale of unregistered crypto securities. The complaint cites Securities and Exchange Commission guidance, emphasizing the need for celebrities to disclose payments received for promoting cryptocurrencies—a step Ronaldo is accused of neglecting.
The proposed class-action lawsuit is brought by Michael Sizemore, Mikey Vongdara, and Gordon Lewis, seeking damages and coverage for legal fees.
This legal development adds to Binance’s ongoing troubles, with founder Changpeng “CZ” Zhao recently pleading guilty to money laundering charges and an unregistered money-transmitting business, resulting in a $4.3 billion settlement. Binance, facing various legal challenges, has also been sued by the SEC for allegedly selling unregistered securities and is under investigation for potential misappropriation of customer funds.
