Binance, like most crypto firms, has struck partnerships with several A-list athletes, including Ronaldo. The 38-year-old became a Binance ambassador in 2022. He participated in multiple campaigns with the exchange, including launching his own NFT series. However, he’s now facing a lawsuit for that promotional campaign.
The lawsuit was filed in a United States district court in Florida. It claims that “Ronaldo’s promotions solicited or helped Binance solicit investments in unregistered securities, encouraging his millions of followers, fans, and supporters to invest with the Binance platform.”
BREAKING NEWS: Superstar Cristiano Ronaldo is facing a lawsuit filed in a Florida District Court on Nov. 27, 2023, for promoting #Binance.#CR7𓃵 pic.twitter.com/l2v1r6pE28
— Sunny decree (@sunnydecree) November 29, 2023
The suit claims that some users enrolled in Ronaldo’s NFTs were more inclined to use Binance for other needs. This includes investing in alleged unregistered securities. The complaints claim Ronaldo should have known “about Binance selling unregistered crypto securities” due to his “investment experience and vast resources to obtain outside advisers.”
According to the complaint, Ronaldo’s influence and reach significantly influenced the rising popularity of Binance. The football star has 850 million followers on social media. In addition, the plaintiffs claim that Ronaldo’s NFT sales were “incredibly successful” in boosting the exchange. They cited a 500% spike in searches for Binance in the week that followed the first sale.
Furthermore, the complaint alleges that Ronaldo failed to disclose the money he received for promoting cryptocurrencies. They cited previous instructions from the SEC demanding influencers to do so.
This Is Not the Only Case of Celebrities’ Lawsuits
The case highlights the responsibility and possible liability influencers and celebrities face when promoting assets such as cryptocurrencies. Interestingly, Ronaldo is not the only celebrity sued for promoting crypto platforms. Others, like Shaquille O’Neal, Tom Brady, Floyd Mayweather, and Kim Kardashian, have faced lawsuits for their ties with the crypto media.
Kim Kardashian, Floyd Mayweather Jr. hit with a lawsuit over #crypto promotionhttps://t.co/SotciaZIP4
— Watcher.Guru (@WatcherGuru) January 12, 2022
Last year, Kim agreed to a $1.26 million settlement with the SEC and opted not to promote cryptocurrency for three years. The SEC accused the reality star of failing to disclose that she received a $250,000 payment to promote EthereumMax on her Instagram account.