NFTs
Cristiano Ronaldo faces $1 billion lawsuit after promoting Binance NFTs
NEW YORK (AP) — Portuguese soccer star Cristiano Ronaldo has been hit with a class-action lawsuit seeking at least $1 billion in damages for his role in promoting cryptocurrency-related “nonfungible tokens,” or NFTs, issued by the beleaguered Binance cryptocurrency exchange.
The lawsuit filed in federal court in the Southern District of Florida on Monday alleges that Ronaldo’s promotion of Binance was “deceptive and unlawful.” Binance’s partnership with prominent figures like Ronaldo, the plaintiffs allege, led them to make expensive and unsafe investments.
“The evidence now reveals that the Binance fraud was only able to reach such heights through the offering and sale of unregistered securities, with the willing aid and assistance of some of the world’s wealthiest, most powerful, and most recognizable organizations and celebrities, including Defendant Ronaldo,” the lawsuit says.
Representatives for Ronaldo declined to comment Thursday. Binance, the world’s largest cryptocurrency exchange, did not immediately return requests for comment from The Associated Press.
Ronaldo Launches His Inaugural NFT Collection “CR7” With Binance in November last yearbefore the 2022 World Cup. NFTs — which had starting prices ranging from the equivalent of around $77 to $10,000 — featured seven animated statues depicting Ronaldo in iconic moments from his life, from bicycle kick goals to his childhood in Portugal.
Monday’s lawsuit says the promotional efforts for Ronaldo’s partnership with Binance have been “incredibly successful” — claiming a 500% increase in online searches using the keyword “Binance” following the announcement of the soccer star’s NFTs. The collection’s premium-tier NFTs sold out within the first week, the lawsuit claims.
The lawsuit also claims that Ronaldo should have disclosed how much Binance paid him for the partnership. The U.S. Securities and Exchange Commission previously observed that federal law requires celebrities to publicly disclose how much they are paid to promote securities, including crypto assets.
NFTs are ordinary digital images with a version number attached that have been added to a cryptocurrency blockchain, a process designed to make them “one-of-a-kind” collectibles. NFTs enjoyed a brief boom but have since collapsed in value as the cryptocurrency industry has been marred by scandals and market crashes.
Over the summer, Binance was accused of operating as an unregistered securities exchange and violating a number of U.S. securities laws in a Regulatory lawsuit. The cryptocurrency exchange agreed last week to pay a approximately $4 billion deal and its founder, Changpeng Zhao, stepped down as CEO and pleaded guilty to a felony related to his failure to prevent money laundering on the platform.
This week’s lawsuit against Ronaldo isn’t the first time a celebrity has faced litigation over cryptocurrency promotions. Last year, for example, a number of Hollywood and sports stars — including Larry David and Tom Brady — were named as defendants in a class action lawsuit lawsuit against FTXwhich was the second largest cryptocurrency exchange before it collapsed in November 2022. The lawsuit argued that the celebrities’ status made them culpable for promoting FTX’s failed business model.
Ronaldo is one of the most recognized and richest athletes in the world. He leads the national team of his country, Portugal, and has played for Spanish team Real Madrid, Italian club Juventus and Manchester United in England. He now plays for Saudi Arabia’s professional team Al Nassr.
Ronaldo has continued to promote Binance on his official website and social media platforms. Most recently, on X (the platform formerly known as Twitter), Ronaldo reposted a Binance video and wrote that he was “cooking something” with the cryptocurrency exchange on Tuesday.