Cristiano Ronaldo is at the center of a class-action lawsuit targeting his promotion of NFTs issued by the Binance platform. Filed in the Southern District of Florida, the suit is seeking at least $1 billion in damages connected to Ronaldo’s promotional activities.
The claimants argue that the footballer’s endorsements of Binance were not only deceptive but also illegal, inadvertently guiding venture-seeking investors into risky and expensive investments.
At the heart of their argument is the assertion that Binance’s alleged fraud included offering and selling unregistered securities, with the aid of major organizations and well-known celebrities like Ronaldo himself.
Ronaldo’s CR7 NFT Collection
Neither Ronaldo nor Binance has offered any public comment or response to the lawsuit thus far. The Portuguese football star previously launched his “CR7″ NFT collection in partnership with Binance in November 2022.
The collection encompasses animated statues representing noteworthy moments in Ronaldo’s life, carrying price tags ranging from around $77 to a staggering $10,000.
The plaintiffs’ case hinges on the assertion that Ronaldo’s promotional efforts caused a significant spike in online searches for Binance, resulting in premium-level NFTs from his collection selling out within a single week.
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The NFT Market and Binance
The context of the lawsuit involves NFTs, which are digital images containing a specific version number on a cryptocurrency blockchain. These digital assets are designed to function as one-of-a-kind, collectible items. However, in recent times, the value of NFTs has largely nosedived.
Binance, the subject of the lawsuit, has faced accusations of operating as an unregistered securities exchange. Of note, the platform recently agreed to pay a $4 billion settlement to resolve the matter. Furthermore, Binance’s founder, Changpeng Zhao, has pleaded guilty to a felony connected to failures in money laundering prevention.
Celebrity-Endorsed NFTs Under Scrutiny
The legal challenge confronting Ronaldo reflects a growing trend in the world of cryptocurrency and its promotion by high-profile celebrities. Numerous well-known figures, including Tom Brady and Steph Curry, have previously encountered lawsuits over their promotions of the now-collapsed FTX exchange.
Despite the potentially damaging implications of the lawsuit, Ronaldo continues to be an avid supporter of Binance. As one of the most recognizable and wealthiest athletes globally, he continues to feature Binance on his official website and social media channels, recently hinting at possible ongoing collaborations with the leading cryptocurrency exchange.
The outcome of the lawsuit remains to be seen, but it is evident that the scrutiny of celebrity endorsements in the cryptocurrency arena is on the rise.
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