Famous football star Cristiano Ronaldo finds himself embroiled in a legal feud, with a new class action lawsuit filed against him, citing his promotional activities with the currently troubled exchange Binance.
This is unsurprising as the exchange continues to withstand attacks from US watchdogs following a guilty plea and $4.3 billion settlement.
Cristiano Ronaldo Sued for Binance Promotion
Reports indicate that on November 27, a class action lawsuit was filed against the current Al Nassr forward. Filed in a Florida District Court, this lawsuit accuses Ronaldo of aiding the sale of unregistered securities linked to Binance.
Binance and the football star struck their alliance mid-last year. Part of the deal was the arrangement to release a series of Ronaldo NFTs on the exchange.
However, the plaintiffs claim that his influence, with his massive social media following, swayed users to buy not just his NFTs but other unregistered offerings of the exchange. Among the unregistered securities include BNB Token and Binance’s crypto yield programs.
Moreover, the plaintiffs highlight that Ronaldo used his big reputation to lure investors into crypto purchasing. Indeed, the lawyers highlighted a sharp 500% increase in interest in Binance after the Ronaldo promotion.
As per the document,
“Ronaldo’s promotions solicited or assisted Binance in soliciting investments in unregistered securities by encouraging his millions of followers, fans, and supporters to invest with the Binance platform.”
The point of contention is that Ronaldo should have been aware of Binance’s alleged involvement in selling unregistered securities.
Therefore, plaintiffs Michael Sizemore, Mikey Vongdara, and Gordon Lewis seek damages and legal fee coverage in the lawsuit.
Binance’s Legal Drama Continues
Amidst the Ronaldo twist, Binance CEO continues to deal with its increasingly troubling legal drama. After taking a guilty plea and contributing part of the $4.3 billion settlement, CZ awaits the final word on his case. Reports suggest that the ex-CEO is looking at up to 18 months in prison.
Binance Exchange also agreed to 5 years of compliance monitoring by the US DOJ. Meanwhile, the SEC is reportedly still drafting a new case against the exchange giant Binance.