Portuguese soccer star Cristiano Ronaldo is grappling with a class-action lawsuit demanding a staggering $1 billion in damages. The legal action, filed in a federal court in the Southern District of Florida, accuses Ronaldo of endorsing cryptocurrency-related “non-fungible tokens” (NFTs) issued by the embattled cryptocurrency exchange Binance.
The lawsuit alleges that Ronaldo’s promotion of Binance was both “deceptive and unlawful,” claiming that the partnership led his millions of fans into risky and costly investments. Ronaldo’s endorsement encouraged his followers, many unfamiliar with cryptocurrencies or the Binance platform, to invest, leaving them with the impression that these investments were secure.
As per the lawsuit, these fans ultimately incurred financial losses. The legal document states,
“Evidence now reveals that Binance’s fraud was only able to reach such heights through the offer and sale of unregistered securities, with the willing help and assistance of some of the wealthiest, powerful, and recognized organizations and celebrities across the globe — just like Defendant Ronaldo.”
Representatives for Ronaldo have refrained from commenting on the matter, and Binance, the world’s largest cryptocurrency exchange, has yet to issue a statement.
Also Read: What is Ronaldo’s Net Worth?
This legal battle echoes previous lawsuits involving celebrities and the crypto world. Notably, NFL quarterback Tom Brady, supermodel Gisele Bundchen, and comedian Larry David faced accusations of defrauding investors in a collapsed cryptocurrency exchange last year.
Cristiano Ronaldo faces a $1 billion lawsuit over his promotion of Binance NFTs with allegations of deceptive endorsements and financial harm. pic.twitter.com/N91kpdFtpX
— The SportsGEN (@TheSportsGEN_) December 1, 2023
Ronaldo’s involvement with Binance includes the launch of his NFT collection, “CR7,” in November of last year. The NFTs, featuring animated statues depicting Ronaldo’s iconic moments, experienced substantial success, with a reported 500% increase in online searches for “Binance” following the collection’s announcement.
The lawsuit also contends that Ronaldo should have disclosed the financial terms of his partnership with Binance, citing U.S. Securities and Exchange Commission regulations requiring such disclosures for celebrity endorsements of securities, including crypto assets.
