Soccer star Cristiano Ronaldo sued for allegedly promoting unregistered securities on Binance
Quick Take
- Cristiano Ronaldo faces a class action lawsuit for allegedly promoting unregistered securities in partnership with Binance.
- Accusations against the soccer star include engaging in deceptive advertising and aiding in Binance’s alleged fraud.
Soccer star Cristiano Ronaldo is being sued over his involvement in allegedly promoting unregistered securities on Binance, according to a recent class action lawsuit filed with the U.S. District Court for the Southern District of Florida.
In 2022, Ronaldo entered into a multi-year agreement with Binance, launching his first-ever NFT collection ahead of the soccer World Cup. He has since become a prominent figure in Binance’s advertising campaigns, leveraging the former Manchester United, Real Madrid and Juventus player’s global fan base and over 100 million social media followers.
The lawsuit alleges that Ronaldo engaged in a "sustained and aggressive" promotional campaign for Binance, claiming that these promotions were “deceptive and unlawful.” The plaintiffs argue that Ronaldo, knowingly or unknowingly, assisted Binance in “soliciting investments in unregistered securities by encouraging his millions of followers, fans and supporters to invest with the Binance platform,” aiding and abetting the company’s alleged fraudulent activities and causing them to suffer losses.
The U.S. Department of Justice settled a criminal case with Binance last week, which probed into alleged money laundering, fraud and sanctions violations. The crypto exchange will pay a $4.3 billion fine, marking one of the largest corporate settlements in U.S. history.
Binance’s former CEO Changpeng Zhao also pleaded guilty in a Seattle court last week to violating and causing a financial institution to violate the U.S. Bank Secrecy Act. He agreed to pay a $50 million fine and step down as CEO as part of the plea deal.
Ronaldo currently resides in Saudi Arabia after moving to Saudi Pro League side Al-Nassr in December 2022. Ronaldo has been served with a court summons mandating him to respond to the complaint within 21 days.
Concerns over the role of celebrities in crypto promotions
The lawsuit against Ronaldo is part of a growing trend concerning the role of celebrities in crypto promotions. Media personality Kim Kardashian, NBA Hall of Famer Paul Pierce, actress Lindsay Lohan and YouTuber Jake Paul all agreed to settle with the Securities and Exchange Commission last year after promoting cryptocurrencies without disclosing they were paid to do so.
The SEC also sued Binance and Zhao in June, alleging it had violated U.S. securities laws.
Basketball legend Shaquille O’Neal, football star Tom Brady, Seinfeld creator Larry David and more than a dozen other FTX promoters were also hit by a class action lawsuit this year, accusing them of promoting the sale of unregistered securities.
Binance and representatives for Cristiano Ronaldo did not immediately return a request for comment from The Block.
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