Portuguese football legend, Cristiano Ronaldo, is entangled in a class action lawsuit in the United States for his endorsement of Binance, the world’s largest cryptocurrency exchange.
The plaintiffs allege that Ronaldo’s promotion of Binance led them to invest in the platform, resulting in financial losses contrary to the promised returns.
The class action lawsuit is seeking damages exceeding $1 billion to cover the losses incurred by investors in what they term a “failed” investment.
The controversy arose after Ronaldo and Binance unveiled the “CR7” collection of non-fungible tokens (NFTs) in November 2022, with promises of potential profits for investors.
In a social media video announcing the partnership, Ronaldo claimed they would “change the NFT game and take football to the next level.”
However, the least expensive NFT in the collection, initially listed for $77, saw its value drop significantly to about $1 within a year.
The claimants argue that Ronaldo’s endorsement significantly boosted Binance’s visibility, leading to a “500% increase in searches.”
Moreover, they allege that the promotion encouraged clients to invest in “unregistered securities,” such as Binance’s cryptocurrency BNB, which falls under the classification of securities by the US Securities and Exchange Commission (SEC).
The lawsuit contends that Ronaldo was obligated to disclose the compensation he received for promoting the NFT but chose not to do so. As of now, neither Cristiano Ronaldo nor Binance has publicly responded to the lawsuit.