Lawsuit Filed Against Cristiano Ronaldo for Promoting Binance
Date: 2023-11-29 Author: Dima Zakharov Categories: IN WORLD
Ronaldo's Alleged Involvement in Binance Promotion
A collective lawsuit has been filed against Cristiano Ronaldo, accusing him of actively participating in the promotion and sale of unregistered securities on the Binance trading platform. Ronaldo partnered with Binance in mid-2022 to promote several collections of non-fungible tokens (NFTs). Plaintiffs claim that users registering on Binance due to Ronaldo's NFTs were more likely to engage in other activities, including investing in unregistered securities like BNB coins and participating in farming programs.
The lawsuit alleges that Ronaldo's promotions aided Binance in attracting investments into unregistered securities, enticing millions of his fans to invest in the platform. Ronaldo, with approximately 850 million social media followers, significantly boosted the demand for his NFTs, consequently elevating Binance's popularity. Investors assert that searches for "Binance" increased by 500% within a week after the initial sale of Ronaldo's tokens. They believe Ronaldo, with his extensive resources, was aware of Binance selling unregistered securities in the cryptocurrency market.
SEC Guidelines and Allegations
The lawsuit cites recommendations by the U.S. Securities and Exchange Commission (SEC) for celebrities to disclose compensation received for promoting cryptocurrencies, which Ronaldo allegedly did not adhere to. The plaintiffs seek compensation for damages and coverage of legal expenses incurred due to the financial losses.
The complaint against the renowned footballer emerges as Binance and its founder, Changpeng Zhao, confront legal issues. Zhao admitted Binance's failure to comply with Anti-Money Laundering (AML) rules and the Bank Secrecy Act (BSA). Richard Teng has replaced Zhao as the CEO, and Binance is obligated to pay $4.3 billion to U.S. regulators.
