Plaintiffs in a class-action lawsuit against Cristiano Ronaldo allege they lost money as a result of his endorsement of the now-illegal cryptocurrency exchange Binance.
After the company was labeled a “significant risk” to consumers by the Financial Conduct Authority and subsequently developed a line of NFTs (non-fungible tokens) under its aegis, the Al-Nassr star signed a sponsorship deal with the exchange in June 2022.
Ronaldo’s involvement, according to the claimants, led to investments that lost money and damages totaling “sum exceeding” $1 billion.
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In the complaint, which was filed on Tuesday to the United States District Court, Southern District of Florida in Miami, it’s alleged that Ronaldo “promoted, assisted in, and/or actively participated in the offer and sale of unregistered securities in coordination with Binance”.
According to additional claims, after the tokens were released, there was a “500 percent increase in searches” for the cryptocurrency exchange as a result of Ronaldo’s promotion of the range.
The U.S. Securities and Exchange Commission (SEC) chair, Gary Gensler, has previously stressed the importance of public disclosure when celebrities recommend investments, especially in crypto-asset securities.
He underlined the significance of comprehending the motivations underlying such endorsements and urged investors to undertake extensive research prior to making an investment.
