SNEAK PEEK
- Ronaldo’s NFT partnership with Binance faces a lawsuit, raising crypto endorsement questions.
- The lawsuit highlights a need for more disclosure in celebrity crypto endorsements.
- Celebrities’ engagement in promoting financial products within the crypto industry is being scrutinized.
In a significant development, soccer superstar Cristiano Ronaldo has become entangled in a proposed class-action lawsuit. This lawsuit, filed in a Florida district court on November 27, accuses him of promoting unregistered securities in collaboration with the crypto exchange Binance. Significantly, the complaint alleges that Ronaldo’s actions contributed to losses for those who followed his advice.
The partnership between Ronaldo and Binance, established in mid-2022, centered around promoting Ronaldo’s nonfungible tokens (NFTs). Consequently, this deal linked at least three of his NFT collections exclusively to Binance. The lawsuit contends that users drawn to Ronaldo’s NFTs were more inclined to utilize Binance for other investments, including those claimed to be unregistered securities.
Cooking something up with @binance https://t.co/FMAP5GAdxE
— Cristiano Ronaldo (@Cristiano) November 28, 2023
Moreover, the suit highlights Ronaldo’s immense social media influence, with an audience of 850 million. It argues that his promotions significantly boosted Binance’s popularity. The week following his NFT sale witnessed a 500% surge in searches for Binance, underlining his impact. However, the plaintiffs allege Ronaldo did not disclose compensation received for these promotions, as the U.S. Securities and Exchange Commission (SEC) advised.
Additionally, the complaint suggests Ronaldo, given his investment experience and access to expert advisors, should have recognized the potential issues with Binance’s crypto offerings. The plaintiffs, Michael Sizemore, Mikey Vongdara, and Gordon Lewis, seek damages and legal expense coverage.
Hence, this case underscores the growing scrutiny over celebrity endorsements in the cryptocurrency sector. It also highlights the need for clear regulatory frameworks and disclosures in crypto promotions. Moreover, the lawsuit is a cautionary tale about celebrities’ responsibilities and potential legal implications when endorsing financial products.
This legal challenge against Ronaldo marks a significant moment in the intersection of sports, celebrity influence, and the volatile world of cryptocurrency. It also opens up a broader conversation about public figures’ ethical and legal responsibilities in the digital finance arena. Consequently, this case could set precedents for future celebrity endorsements in the crypto industry.
