A class action lawsuit was filed against high-profile organizations and individuals, including names such as Cristiano Ronaldo, on the grounds that they promoted the Binance crypto exchange.
Star Cristiano Ronaldo has been included in a class-action lawsuit for his participation in a promotional campaign by the Binance exchange. Investors who claimed they lost money filed a lawsuit in a U.S. District Court in Florida, arguing that Ronaldo promoted the stock market as a “safe and respected place.”
Plaintiffs Michael Sizemore, Mikey Vongdara and Gordon Lewis; Ronaldo has filed four separate class-action lawsuits against Major League Baseball, F1, Mercedes-Benz and global advertising agency Dentsu.
In three of the lawsuits, multiple entities are accused of aiding, abetting, and/or directly participating in extensive, multibillion-dollar fraudulent activities conducted by FTX by promoting FTX as a safe and reliable exchange. The fourth lawsuit specifically alleges that Cristiano Ronaldo participated in the widespread promotion of investments in unregistered securities on behalf of Binance.
The exchange’s collaboration with Ronaldo lasts until the NFT collection introduced in 2022. In the case in question, it is claimed that there was a large attendance due to this collection.
The lawsuit alleges that many users flocked to the exchange for Ronaldo’s NFTs, creating a scenario where those users are more likely to engage in other crypto-related activities, including investments in what the lawsuit calls “unregistered securities,” such as BNB.
It is claimed that Ronaldo’s NFT sales contributed to a significant rise for the stock market, with a staggering 500% increase in searches for Binance in the week following the first sale.
The case against Ronaldo comes against the backdrop of a crypto industry plagued by scandals and legal issues. He points to the collapse of FTX, where former CEO Sam Bankman-Fried was recently convicted of money laundering and fraud.
Binance has also faced its share of problems, with CEO Changpeng “CZ” Zhao pleading guilty to Anti-Money Laundering violations and paying a hefty settlement for operating an unregistered securities business. He has since resigned as CEO and the exchange is currently subject to a five-year compliance monitoring process by the U.S. Department of Justice and the Treasury Department, indicating a difficult road ahead.