In a surprising turn of events, renowned football star Cristiano Ronaldo is facing a class-action lawsuit in the United States. The legal action stems from allegations that Ronaldo’s endorsement of cryptocurrency exchange Binance resulted in financial losses for investors. The plaintiffs, Michael Sizemore, Mikey Vongdara, and Gordon Lewis, claim that Ronaldo’s promotion led them to make investments that ultimately incurred losses when US authorities initiated an investigation into Binance for alleged tax evasion. Ronaldo’s association with Binance began in 2022 when he signed a deal to promote Non-Fungible Tokens (NFTs) featuring highlights from his illustrious career. However, these collections received mixed reviews, with some fans criticizing them as desperate. Recently, Binance agreed to a $4 billion settlement in a case related to terrorist financing. The plaintiffs argue that influencers like Ronaldo played a significant role in Binance’s rise by hyping securities in exchange for substantial payouts. They allege that Ronaldo’s solicitation of investments contributed to a surge in Binance’s influence and claim that he should have been aware of Binance’s alleged sale of unregistered crypto securities. The lawsuit also references the US Securities and Exchange Commission’s warning to celebrities about disclosing payments received for promoting investment in securities. The plaintiffs are seeking damages exceeding $1 billion, including compensatory damages, restitution, disgorgement of revenues, legal fees, and statutory damages. Meanwhile, Binance and its founder, Changpeng “CZ” Zhao, are facing their own legal challenges, having recently pleaded guilty and agreed to a $4.3 billion settlement for violating Anti-Money Laundering laws. Ronaldo’s financial ties with Binance are now under intense scrutiny, raising questions about the responsibilities of celebrities endorsing cryptocurrency platforms.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Europe |
| Countries | 🇺🇸 |
| Sentiment | negative |
| Relevance Score | 1 |
| People | Cristiano Ronaldo |
| Companies | Anti-Money Laundering laws, NFT marketplace, Binance, SEC, US district court |
| Currencies | NFT Stars, British Pound, US Dollar |
| Securities | None |
