Portuguese soccer icon Cristiano Ronaldo finds himself embroiled in a legal battle as a class-action lawsuit seeking a staggering $1 billion in damages has been filed against him. The lawsuit, lodged in federal court in the Southern District of Florida, alleges that Ronaldo’s promotion of cryptocurrency-related “non-fungible tokens” (NFTs) issued by the troubled cryptocurrency exchange Binance was both deceptive and unlawful.
Cristiano Ronaldo’s Alleged Role
The lawsuit contends that Ronaldo’s association with Binance, especially the promotion of NFTs, played a crucial role in leading investors into what the plaintiffs describe as costly and unsafe investments. The suit accuses Binance of engaging in fraudulent activities through the offer and sale of unregistered securities, with Ronaldo and other high-profile figures contributing to the exchange’s success.
NFT Launch and Success
Ronaldo launched his inaugural NFT collection, “CR7,” in collaboration with Binance in November of the previous year, just ahead of the 2022 World Cup. The NFTs featured animated statues depicting iconic moments from Ronaldo’s life, with prices ranging from approximately $77 to $10,000. The lawsuit claims that the promotional efforts were “incredibly successful,” citing a 500% increase in online searches for the keyword “Binance” after the announcement. Premium-level NFTs reportedly sold out within the first week.
Ongoing Promotion and Response
Cooking something up with @binance https://t.co/FMAP5GAdxE
— Cristiano Ronaldo (@Cristiano) November 28, 2023
Despite the legal turmoil, Ronaldo has continued to promote Binance on his official website and social media platforms. Recent activities include reposting a Binance video on the platform formerly known as Twitter (X), hinting at further collaboration. Representatives for Ronaldo have declined to comment on the matter, while Binance, the world’s largest cryptocurrency exchange, has yet to issue a statement.
Crypto Industry Challenges
NFTs once hailed as unique digital collectables, have faced a decline in value amid scandals and market downturns within the cryptocurrency industry. Binance itself faced accusations of operating as an unregistered securities exchange over the summer, resulting in a roughly $4 billion settlement and its founder stepping down as CEO.
Legal Precedents and Celebrity Involvement
This lawsuit against Ronaldo mirrors previous legal actions involving celebrities and cryptocurrency promotions. Notably, Hollywood and sports stars, including Larry David and Tom Brady, faced a class-action suit over their involvement with FTX, the second-largest crypto exchange before its collapse in November 2022.
The lawsuit against him may set a precedent for future legal actions involving high-profile individuals promoting cryptocurrency-related products, emphasizing the need for transparency and due diligence in such collaborations.
In the coming months, the legal proceedings will likely provide additional insights into the specifics of Ronaldo’s involvement and the broader implications for the cryptocurrency industry. This case serves as a cautionary tale for both celebrities and investors navigating the evolving landscape of digital assets, where financial opportunities coexist with legal uncertainties.
Cristiano Ronaldo, a global sporting icon and one of the wealthiest athletes, captains Portugal’s national team. His illustrious career has seen him grace the pitches of Real Madrid in Spain, Juventus in Italy, and Manchester United in England. In a surprising move, Ronaldo now brings his unparalleled skills to the Saudi Arabian professional team, Al Nassr, continuing to redefine football’s international landscape.
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