Cristiano Ronaldo grapples with legal challenges stemming from his partnership with Binance

Cristiano Ronaldo, renowned for his achievements on the football pitch and commanding social media presence, is now facing legal challenges arising from his partnership with Binance, one of the world’s largest cryptocurrency exchanges.

Plaintiffs Michael Sizemore, Mikey Vongdara, and Gordon Lewis claim in a lawsuit that they suffered losses due to Ronaldo’s promotion of unregistered securities offered by Binance. The legal filing asserts that Ronaldo, with his vast influence and 850 million social media followers, actively sold these securities without adequate disclosure.

The core issue revolves around Ronaldo’s multi-year partnership with Binance, initiated in mid-2022. The lawsuit argues that his promotion of the exchange, primarily through the sale of his exclusive NFT collection, led users to engage in transactions involving unregistered securities on the Binance platform.

In 2022, amid the cryptocurrency fervour, Ronaldo entered a multi-year agreement with Binance to provide spokesperson and marketing services, including promoting his NFT collection exclusively on the Binance platform. As alleged in the lawsuit, the success of these NFT sales significantly boosted Binance’s visibility, resulting in a 500% increase in searches for the exchange in the week following the initial sale.

The lawsuit claims that given Ronaldo’s investment experience and vast resources, he should have been aware of Binance selling unregistered crypto securities. It further emphasizes the lack of disclosure regarding payments received for endorsing cryptocurrencies, a requirement outlined by the U.S. Securities and Exchange Commission (SEC).

As the legal battle unfolds, questions arise about Ronaldo’s responsibility in promoting financial products and the broader implications for celebrity endorsements in the cryptocurrency market. The interconnected fate of Ronaldo and Binance underscores the increasing scrutiny faced by the industry and the necessity for transparency.

In conclusion, Cristiano Ronaldo’s venture into cryptocurrency takes an unexpected turn as a proposed class-action lawsuit raises potential ramifications for celebrity endorsements. As legal proceedings progress, the outcome will likely extend beyond Ronaldo’s personal reputation, shaping the evolving landscape of crypto endorsements and associated responsibilities.