Cristiano Ronaldo sued for promoting crypto exchange Binance
What's the story
A bunch of complainants have filed a lawsuit against football star Cristiano Ronaldo in a Florida District court. The plaintiffs, Michael Sizemore, Mikey Vongdara, and Gordon Lewis, are blaming him for promoting Binance, alleging they suffered losses due to Ronaldo's endorsement of the exchange. Binance has been accused of inadequate anti-money laundering measures and was recently ordered to pay $4.3 billion in settlements to US authorities.
Details
Allegations against Ronaldo and Binance partnership
As per the filing, Ronaldo "promoted, assisted in, and/or actively participated in the offer and sale of unregistered securities in coordination with Binance." The football star partnered with the exchange in mid-2022 to promote his own NFT (Non-Fungible Token) collection. Users who signed up for the NFTs were reportedly more likely to use Binance for other activities, such as purchasing unregistered securities like the BNB token and participating in the exchange's yield programs.
What Next?
Ronaldo should have known about Binance's activities: lawsuit
According to the lawsuit, Ronaldo knew or should have known about "Binance selling unregistered crypto securities." The lawsuit further claims that Ronaldo has "investment experience and vast resources to obtain outside advisers." Additionally, the lawsuit cites the Securities and Exchange Commission's (SEC) warning to celebrities about disclosing payments received for promoting cryptocurrencies. The plaintiffs claim that Ronaldo failed to disclose payments he received from Binance.
Insights
Binance CEO steps down amid legal troubles
This lawsuit is the latest development in the ongoing Binance controversy. The company's CEO, Changpeng Zhao, recently pleaded guilty to money-laundering charges and agreed to step down as the head of the company. Zhao's departure follows Binance's guilty plea to extensive US money laundering violations and an agreement to pay over $4 billion in fines.