Cristiano Ronaldo faces $1 billion class action lawsuit over Binance endorsement

Football superstar Cristiano Ronaldo faces a $1 billion class-action lawsuit related to his business relationship with cryptocurrency exchange Binance.

The lawsuit, filed on November 28 in the District Court for the Southern District of Florida in Miami, accuses Ronaldo of “coordinating with Binance to promote, assist and/or actively participate in the issuance and sale of unregistered securities.” “

The action is aimed at representing “consumers who purchased unregistered securities offered by Binance.” The lead plaintiff was identified as California resident Michael Sizemore, who allegedly purchased unregistered securities from Binance “after learning of some or all of Defendants’ misrepresentations and omissions with respect to the Binance platform.” .

“Mr. Ronaldo’s promotions require or assist Binance to solicit investments in unregistered securities, encouraging his millions of followers, fans and supporters to invest using the Binance platform,” the legal filing states.

The lawsuit could add to Binance’s growing list of legal matters. In June, the U.S. Securities and Exchange Commission sued Binance, the operating company of Binance.US, and its founder Changpeng Zhao “CZ” for violating federal securities laws. Last week, in a separate case, Binance agreed to pay $4.3 billion to settle charges brought by U.S. prosecutors for allegedly violating sanctions and remittance laws.

He is accused of “soliciting investment in unregistered securities by encouraging millions of followers, fans and supporters to invest through the Binance platform.”

“Mr. Ronaldo’s promotions were posted on public websites, television and social media accounts accessible to Plaintiffs throughout the country, including in Florida,” the lawsuit states. “It is understood and believed that in exchange for Mr. Ronaldo’s services, Mr. Ronaldo received and receive a substantial total compensation package, which may include compensation in the form of digital assets transmitted through the Binance platform.”

The lawsuit cites previous SEC warnings that virtual tokens may be securities and that celebrities must disclose when they are paid to promote securities.