- Cristiano Ronaldo is sued for allegedly promoting and selling unregistered securities in collaboration with Binance.
- The lawsuit claims Ronaldo’s influential social media presence led to significant investment in loss-generating Binance NFTs.
Ronaldo’s Legal Tangle with Binance Promotion
Portuguese football legend Cristiano Ronaldo finds himself at the center of a legal battle, accused of participating in the promotion and sale of unregistered securities in association with the prominent cryptocurrency exchange, Binance. The lawsuit, seeking over $1 billion in damages, raises critical questions about celebrity endorsements in the volatile world of cryptocurrency.
— Cristiano Ronaldo (@Cristiano) November 28, 2023
Influential Endorsement Draws Scrutiny
Ronaldo’s collaboration with Binance, announced in June 2022, involved not only endorsing the platform’s non-fungible token (NFT) collection but also encouraging his massive social media following to engage with Binance’s Web3 community. The plaintiffs allege that his endorsement significantly influenced their decision to invest in what turned out to be loss-generating investments.
The Power of Social Media Influence
Cristiano Ronaldo, commanding a following of over 840 million across various social media platforms, used his influence to drive traffic to Binance. The lawsuit contends that his promotions effectively solicited investments in unregistered securities, leveraging his considerable fanbase. The plaintiffs cite a notable spike in internet searches for Binance, by 500%, following Ronaldo’s social media posts, which they argue led many of his followers to invest in these securities.
Continued Collaboration Despite Legal Challenges
Despite the looming billion-dollar lawsuit, Ronaldo, currently playing in Saudi Arabia, appears to continue his association with Binance. A recent post on social media from November 28 suggests ongoing collaboration, underscoring the football icon’s commitment to the partnership despite the legal headwinds.
In summary, Cristiano Ronaldo’s endorsement of Binance’s NFT collection has entangled him in a significant legal challenge, spotlighting the risks associated with celebrity endorsements in the cryptocurrency sector. The lawsuit underscores the influence of high-profile personalities in guiding public investment decisions, especially in emerging and often unregulated markets like cryptocurrencies. As the case unfolds, it will offer insights into the legal responsibilities of celebrities in promoting financial products and the need for clear regulatory guidelines in the rapidly evolving crypto industry.