Cristiano Ronaldo, one of the most famous and highest-paid footballers in the world, is facing a lawsuit for his involvement in promoting Binance, a cryptocurrency exchange that allegedly sold unlicensed securities and caused massive investor losses. Prior to this suit, Ronaldo had a multiyear partnership with Binance, who was to promote his own NFTs as well as front a string of advertising campaigns.
The lawsuit was filed by a plaintiff claiming to have lost more than $100,000 after investing in Binance and its NFTs, which are digital tokens representing ownership of unique assets. The plaintiff accuses Ronaldo of actively promoting Binance and its NFTs on his social media platforms, where he has over 500 million followers.
The plaintiff alleges that Ronaldo’s endorsement misled investors into believing that Binance and its NFTs were legitimate and regulated, when in fact they were not. According to the lawsuit, Binance and its NFTs breached US securities laws by distributing and trading unregistered securities without adequately disclosing the associated risks and benefits. As stated in the filing:
"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."
Additionally, the legal action asserts that Binance and its NFTs were vulnerable to manipulation, hacking, fraudulent activities, and theft, leading to substantial financial setbacks for investors. The lawsuit aims for unspecified compensation and a judicial directive to prohibit Ronaldo from endorsing Binance or any other unregistered securities in the future.
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