The world-famous football player Cristiano Ronaldo involved in an astounding $1 billion class-action lawsuit because of his affiliation with the cryptocurrency exchange Binance.
$1 bn Lawsuit Filed Against Cristiano Ronaldo For Promoting Binance
The lawsuit claims that Ronaldo’s partnership with Binance for the CR7 line of non-fungible tokens (NFTs) resulted in considerable losses and damages.
The case filed in the United States District Court, Southern District of Florida in Miami.
November 2022 saw the debut of these digital tokens, which bore Ronaldo’s shirt number and initials.
After being originally priced at $77 (£60.76), they have fallen to just $1 (£0.79) in less than a year.
The claims link footballer’s involvement to the enormous losses, claiming that it led to risky investments and damages that surpassed $1 billion.
Accusation on World Class Footballer
According to the lawsuit, he actively took part in offering and selling unregistered securities in conjunction with Binance, in addition to publicly promoting them.
It further states that a sharp spike in searches for the cryptocurrency exchange—up to a “500 percent increase in searches”—that happened after the token distribution was purportedly caused by Ronaldo’s support.
The U.S. Securities and Exchange Commission (SEC) chief, Gary Gensler, has previously stressed the importance of public disclosure when celebrities recommend investments, especially in crypto-asset securities.
He underlined the need of comprehending the motivations underlying such endorsements and recommended investors to undertake extensive study before to making an investment.
Ronaldo’s social media-shared remark regarding the NFT range sought to transform the NFT game and raise football to previously unheard-of heights.
On the other hand, plaintiffs contend that Ronaldo omitted to reveal the whole amount of money he made from this partnership, an important revelation that ought to made public.
DeVere Group CEO Nigel Green expanded the purview of his authority while emphasizing the necessity of regulatory norms in this dynamic financial environment.
He emphasized that although Ronaldo is the subject of accusations, the larger problem is that international regulators are taking too long to set down explicit guidelines for these kinds of financial endeavors.
Ronaldo made hints about a potential partnership with Binance through a recent social media post, despite the legal issues.
Moved To Al-Nassr Football Club
This legal mess caused by Ronaldo’s move from Manchester United to Al-Nassr in the Saudi Pro League. Ronaldo was the first prominent football player to make this move.
His move set off a chain reaction that attracted other well-known Premier League players, such as Steven Gerrard and Jordan Henderson, to the Middle East.
Ronaldo justified his decision, saying that he now wants to share his experience in Asia after achieving success in European football with Manchester United, Real Madrid, and Juventus.
He was excited about the move to a new league in a new nation, pointing to Al Nassr’s visionary leadership as a major source of inspiration.
To read our blog on “Binance CEO CZ steps down and pleads guilty to US charge,” click here.