Cristiano Ronaldo is facing a class-action lawsuit seeking at least $1 billion in damages for promoting cryptocurrency exchange Binance’s NFTs (non-fungible tokens). The lawsuit was filed on Monday in the Southern District of Florida, alleging that Ronaldo’s promotion of Binance and its products was “deceptive and unlawful.”
The plaintiffs claim that Binance’s association with prominent figures like Ronaldo led people to make costly and unwise investments. Monday’s suit asserts, “Evidence now reveals that Binance’s fraud was able to reach such heights through the offer and sale of unregistered securities, with the help of some of the wealthiest and most powerful organizations and celebrities across the globe—including Defendant Ronaldo.”
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Ronaldo’s CR7 NFT collection was launched prior to the FIFA 2022 World Cup, with NFT prices ranging from $77 to $10,000 and focusing on iconic moments from his career. The suit claims that Binance’s partnership with Ronaldo was “incredibly successful,” and alleges that online searches for “Binance” surged by as much as 500% after the launch of CR7 NFTs.
The suit also claims that premium-level NFTs in the collection sold out within the first week, and Ronaldo is accused of not disclosing the amount Binance paid him for the partnership. Federal law requires celebrities to publicly disclose their earnings from promoting securities such as crypto assets, as highlighted by the U.S. Securities and Exchange Commission.
NFTs are digital images with an attached version number, making them unique collectible items. The short-lived NFT boom has significantly impacted the cryptocurrency market, leading to controversies and market collapses.
Binance has been accused of operating as an unregistered securities exchange, violating multiple U.S. securities laws in a lawsuit from regulators. Recently, the crypto exchange agreed to pay around $4 billion in settlement, and founder Changpeng Zhao stepped down as CEO, pleading guilty to a felony related to money laundering on the platform and his failure to prevent it.
Larry David and Tom Brady were named as defendants in a class-action suit against FTX before its November 2022 collapse. The suit argued that their celebrity status made them responsible for promoting FTX and its failed business model. Despite this, Ronaldo continues to promote Binance on his official website and social media platforms.
