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Ronaldo In $1 Billion Legal Storm Over Binance Cryptocurrency Exchange Partnership
Cristiano Ronaldo, the soccer superstar, finds himself embroiled in a staggering $1 billion legal dispute over his association with Binance, the world’s largest cryptocurrency exchange. This lawsuit alleges that Ronaldo’s promotion of Binance led to financial losses for investors, sparking a high-stakes battle in the US courts.
The lawsuit, filed in the wake of the US Justice Department’s staggering $4.3 billion penalties and forfeitures imposed on Binance, accuses Ronaldo of endorsing the exchange, leading individuals to make investments that resulted in substantial losses, demanding compensation exceeding $1 billion.
Ronaldo’s ties with Binance deepened with the launch of the “CR7” collection of non-fungible tokens (NFTs) in partnership with the exchange. These digital assets, carrying Ronaldo’s initials and shirt number, were marketed to reward fans for their longstanding support. NFTs, existing solely in the digital realm, gained immense popularity as a marker of ownership for various online content.
The partnership announcement video featuring Ronaldo promised a groundbreaking shift in the NFT landscape, aiming to revolutionize football’s digital sphere.
However, the lawsuit alleges a sharp contrast between the NFTs’ initial price and their subsequent plummeting value, accusing Ronaldo’s endorsement of Binance as the catalyst for a drastic increase in searches for the crypto exchange. Investors purportedly flocked to Binance, investing in what the claimant’s term as “unregistered securities,” including Binance’s BNB cryptocurrency.
The crux of the issue revolves around SEC guidelines, which mandate celebrities to disclose their payment and endorse investment opportunities responsibly. The claimants argue that Ronaldo failed to disclose his financial involvement in endorsing these digital assets, echoing sentiments expressed by SEC Chair Gary Gensler regarding celebrities’ responsibilities in endorsing such investments.
Amidst the legal upheaval, Nigel Green of DeVere Group stresses that the complexities transcend Ronaldo’s involvement, pointing fingers at global regulators for the lack of clear guidelines in this evolving financial landscape.
As the legal saga unfolds, Ronaldo and Binance have hinted at future collaborations, yet both have remained mum on the mounting allegations and requests for comment.
This lawsuit arrives hot on the heels of the Justice Department’s heavy-handed measures against Binance, accusing the exchange of aiding users in evading global sanctions and facilitating illicit money movements, culminating in the resignation of its CEO, Changpeng Zhao, who admitted to money-laundering violations.
In a synchronized legal ripple effect, Major League Baseball, Formula 1, and Mercedes-Benz also face class-action lawsuits for their involvement in promoting a failed crypto-exchange, FTX, further amplifying the spotlight on the perils of celebrity endorsements within the crypto world.
