Football superstar Cristiano Ronaldo finds himself at the end of an unexpected billion-dollar lawsuit for promoting the world’s largest cryptocurrency exchange, Binance. The class-action lawsuit was filed against the Portuguese icon in the United States and seeks damages over $1 billion for his CR7 x Binance promotion. Let’s take a closer look at the controversy and find out if Cristiano Ronaldo did in fact lead investors to make massive losses, as the lawsuit alleges.
Cristiano Ronaldo sued for promoting crypto company
Angry investors who made significant losses by choosing Binance have sued Ronaldo for promoting the cryptocurrency company. They claim that it was the Al Nassr footballer’s endorsement which led to a substantial spike in searches for the crypto exchange which in turn led people to invest in unregistered securities.
Cooking something up with @binance https://t.co/FMAP5GAdxE
— Cristiano Ronaldo (@Cristiano) November 28, 2023
The company’s native cryptocurrency BNB benefited a lot from Ronaldo’s ‘CR7 x Binance’ collaboration which led to a 500% surge in searches. The lawsuit alleges that the footballer did not reveal the financial details of his deal with the platform. According to the SEC, such celebrity endorsements for investment opportunities must be transparent.
Ronaldo started endorsing the firm in November 2022 and introduced the CR7 collection of NFTs. The initial prices of around $77 per token took a massive hit and now sell at a mere dollar each. This price volatility is one of the major factors why investors have sued the 38-year-old star.
Accusations against Binance, explained
As things stand, the $1 billion lawsuit against Cristiano Ronaldo seems to be an extension of other controversies that Binance has been facing recently. The US Justice Department recently ordered the company to pay $4.3 billion as they face allegations of helping users bypass global sanctions.
This is what is going on with Binance and CEO CZ:
– Binance has agreed to pay fines totaling $4.3 billion.
– CZ's plea deal may preserve the company's ability to operate.
– CZ will retain majority ownership of Binance.
– CZ will not be able to hold an executive role at the… pic.twitter.com/MSbUzhpKEX— Crypto Rover (@rovercrc) November 26, 2023
Furthermore, the company was also under scrutiny for allegedly providing an easy platform for money laundering by criminals and terrorists. In the wake of this controversy, the company’s CEO Changpeng Zhao admitted to a few violations and resigned from his role.
DeVere Group CEO Nigel Green has said that the real issue is not about Ronaldo’s endorsement but the lack of clear guidelines for the fast-evolving financial landscape. Regardless, the 5-time Champions League winner’s role in the issue has become subject to debate.
Will CR7 continue promoting crypto and NFTs?
Thanks to the class action lawsuit, the CR7 x Binance collab’s future hangs in the balance. Being sued for a billion dollars would set off alarms for other celebrities who also endorse cryptocurrency, NFTs and other unregistered securities. This includes Ronaldo’s longtime rival, Lionel Messi who endorses Bitget, a social crypto trading platform.
Amid the legal turmoil, Ronaldo recently shared a post with the company and a caption “cooking something up”. However, the new development might bring things to a halt as the former Real Madrid star would consider never promoting cryptocurrency again.
