Cristiano Ronaldo has been hit with a class-action lawsuit from plaintiffs claiming they suffered losses from his promotion of the now-legally embroiled crypto exchange Binance.
The Al-Nassr star signed a sponsorship deal with the exchange in June 2022 – after the company had been branded a ‘significant risk’ to consumers by the Financial Conduct Authority and later developed a line of NFTs (non-fungible tokens) under its aegis.
The claimants allege that Ronaldo’s involvement prompted loss-making investments and damages of a “sum exceeding” $1bn.
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In the complaint, which was filed on Tuesday to the United States District Court, Southern District of Florida in Miami, it’s alleged that Ronaldo “promoted, assisted in, and/or actively participated in the offer and sale of unregistered securities in coordination with Binance”.
Further claims allege that Ronaldo’s promotion of the range led to a “500 percent increase in searches” for the crypto exchange following the release of the tokens.
Gary Gensler, the chair of the U.S. Securities and Exchange Commission (SEC), previously emphasized the necessity for public disclosure by celebrities endorsing investment opportunities, particularly in crypto-asset securities.
He urged investors to conduct thorough research before investing, emphasizing the importance of understanding the motives behind such endorsements.
