NFTs
Ronaldo Hit With $1 Billion Class Action Lawsuit For Endorsing Binance NFTs
Portuguese soccer star Cristiano Ronaldo is facing a class action lawsuit seeking at least $1 billion in damages for his role in promoting cryptocurrency-related “non-fungible tokens,” or NFTs, issued by troubled cryptocurrency exchange Binance to millions of his fans.
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.
Under the marketing partnership, Ronaldo encouraged millions of his fans and supporters to invest with Binance, even though many of them were unfamiliar with cryptocurrencies or the platform, the lawsuit alleges. As a result of his endorsement, his fans were left with the impression that the investments were safe — as was the case with the plaintiffs in the lawsuit, who purchased products sold on Binance after seeing Ronaldo’s endorsements, it alleges.
In the end, they lost money, the lawsuit states.
“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 wealthiest, most powerful, and most recognizable organizations and celebrities in the world – as well as Defendant Ronaldo,” the lawsuit reads.
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 is not the first celebrity to be sued over their involvement in the crypto world. Last year, NFL quarterback Tom Brady, supermodel Gisele Bundchen and comedian Larry David were among a star-studded list. accused of defrauding investors who lost money in the cryptocurrency exchange collapse.
The stars appeared in a Super Bowl ad and other FTX promotions. The lawsuit argued that the celebrities’ status made them culpable for promoting FTX’s failed business model.
Ronaldo NFT Collection
Ronaldo launched his inaugural “CR7” NFT collection with Binance in November last year, ahead of the 2022 World Cup. The 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 of Ronaldo’s Binance partnership 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 alleges that Ronaldo should have disclosed how much Binance paid him for the partnership. The US Securities and Exchange Commission previously noted that federal law requires celebrities to publicly disclose how much they are being paid to promote securities, including crypto assets.
The brief NFT boom
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 their value has since collapsed as the crypto industry has been roiled by scandals and market crashes.
Over the summer, Binance was accused of operating as an unregistered securities exchange and violating a number of US securities laws in a lawsuit brought by regulators. The cryptocurrency exchange agreed last week to pay a agreement worth approximately US$4 billion 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.
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 Arabian professional team Al Nassr.
Ronaldo continued to promote Binance on his official website and social media platforms. More 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.