Nikolas Sargeant
Users attracted by Ronaldo's promotions are being sued for engaging in various activities on Binance, such as purchasing unregistered securities. The lawsuit against soccer star Cristiano Ronaldo is valued at $1 billion and accuses him of promoting the largest cryptocurrency exchange, Binance.
The plaintiffs have filed a document at the United States District Court for the Southern District of Florida Miami Division. They accuse Ronaldo of engaging in the promotion, assistance, and participation of the offer and sale of unregistered securities. This collaboration allegedly involves Binance.
Case Brought Against Ronaldo
In June 2022, Ronaldo formed a partnership with Binance for several years. The goal was to introduce Web3 and non-fungible tokens (NFTs) to his large fanbase. Together, they have released three NFT collections. The most recent collection, The CR7 ForeverZone, was revealed in October.
Three plaintiffs, namely Michael Sizemore, Mikey Vongdara, and Gordon Lewis have alleged that individuals who Ronaldo's NFTs enticed to join Binance may have engaged in additional activities on the platform, such as investing in unregistered securities like Binance Coin (BNB) and participating in yield programs.
Plaintiffs claim that influencers like Ronaldo were instrumental in Binance's growth, as they promoted the securities in exchange for large payments. By promoting Binance and seeking investments on their behalf, Ronaldo contributed to the exchange's increased influence. The plaintiffs also allege that Ronaldo's successful NFT sales led to a 500% surge in searches for Binance.
Binance's fraud reached significant levels due to the sale of unregistered securities. This was made possible with the support and assistance of wealthy organizations, powerful individuals, and recognized celebrities worldwide, including Defendant Ronaldo. The plaintiffs have presented evidence of this.
Binance's Recent Legal Issues
Sizemore and his co-plaintiffs referred to legal cases against Binance to support their claims. These cases involved regulatory agencies accusing Binance of violating U.S. trading laws. The Commodity Futures Trading Commission filed one lawsuit in March, and the Securities and Exchange Commission filed another in June.
The complaint mentioned the SEC warning to celebrities. The warning says they need to disclose how much they are paid to promote investment in securities. The complaint argues that Ronaldo didn't follow the guidance.
The SEC issued a warning to celebrities. The warning states that they must disclose their payment for promoting securities. The complaint claims that Ronaldo did not comply with this guidance.
