Binance is in legal trouble after a group of investors sued famous football star Cristiano Ronaldo for promoting the world’s largest exchange.
A group of cryptocurrency investors has filed a lawsuit against global soccer star Cristiano Ronaldo in the U.S. District Court in Florida.
Plaintiffs Mikey Vongdara, Michael Sizemore and Gordon Lewis claim they suffered significant damages after Ronaldo promoted Binance, the world’s largest cryptocurrency exchange loss.
According to the Nov. 27 filing, the plaintiffs allege that the five-time Ballon d’Or winner “facilitated, assisted and/or actively participated in the issuance and sale of unregistered securities in coordination with Binance.”
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In mid-2022, Binance signed a multi-year partnership agreement with Al Nassr players to promote a series of non-fungible tokens (NFTs), including three of its digital collectibles.
Additionally, they believe Ronaldo’s promotion of Binance in 2022 will help increase the exchange’s popularity. The complainant noted that Binance-related searches jumped 500% the week Ronaldo sold NFTs on the exchange.
According to the complainant, people who visit Binance to obtain Ronaldo’s NFTs are more likely to use the exchange for other purposes. The plaintiffs allege that unsuspecting users may have invested in tokens that the SEC considers unregistered securities, including BNB and ADA.
The filing alleges that Ronaldo knew or should have known that Binance offered unregistered securities. To further support their argument, they cited the SEC’s warning to celebrities requiring them to disclose financial details of all cryptocurrency-related promotions.
Binance legal woes
It is worth mentioning that Binance and its founder Changpeng Zhao (CZ) are currently involved in a legal battle with the US government over money laundering charges.
The defendants pleaded guilty and agreed to pay a $4.3 billion fine. Meanwhile, the development prompted CZ to resign as CEO of Binance, pending a ruling that he violated U.S. law.
CZ faces up to 18 months in prison, with sentencing scheduled for February 2024.