A lawsuit filed on Nov 27 in Florida District Court cited that Ronaldo not only promoted Binance but also “assisted in and/or actively participated” in the offer and sale of unregistered securities related to Binance. The partnership contract between Binance and Cristiano Ronaldo was signed mid-2022 in order to promote a series of his NFT collections tied to this crypto exchange.
The lawsuit also criticizes Ronaldo for failing to comply with Securities and Exchange Commission (SEC) guidelines, warning celebrities of the need to disclose payment received for promoting cryptocurrencies, which this soccer star didn’t do.
Users who signed up for Ronaldo’s NFTs can use Binance for other purposes, including investing in unregistered securities and crypto yield programs. Ronaldo, with his influence, obviously expanded Binance’s popularity, reaching 850 million followers on social networks, the lawsuit said. The class-action lawsuit plaintiffs are seeking compensation and legal fees from Ronaldo.
Meanwhile, Binance and its founder Changpeng “CZ” Zhao are also facing their own legal troubles, including accusations of money laundering and operating as an unlicensed money services business. Changpeng Zhao stepped down as Binance CEO on Nov 22 and admitted to violating anti-money laundering laws in Seattle federal court.