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Soccer star Cristiano Ronaldo is facing a class-action lawsuit that alleges the plaintiffs lost money because he promoted unregistered securities with embattled crypto exchange Binance.
The lawsuit, filed with the U.S. District Court in Florida on November 27, says that Ronaldo “participated in the offer and sale of unregistered securities in coordination with Binance.”
It further alleges that by working with Binance, Ronaldo encouraged millions of fans to invest in unregistered securities with the exchange giant.
The plaintiffs claim that Ronaldo should have known that Binance sold unregistered crypto securities, given his investment experience and ability to hire advisers.
The plaintiffs in the lawsuit, Michael Sizemore, Mikey Vingdara, and Gordon Lewis, seek damages and funds to pay legal fees.
Binance Mired In Regulatory, Legal Battles
Binance signed a multi-year partnership with Ronaldo in mid-2022 to promote a series of non-fungible tokens (NFTs). Several of these NFTs were tied to Binance.
The lawsuit comes as legal and regulatory woes engulf Binance and its former CEO, Changpeng Zhao. Binance made a $4.3 billion settlement with U.S. authorities over money laundering and sanctions violations. However, it is still under regulatory probe for offering unregistered securities.
Zhao could be sentenced to up to 18 months in prison.
Celebrities Besides Ronaldo Face Legal Woes over Crypto Promotions
The plaintiffs also referred to a warning by the U.S. Securities and Exchange Commission (SEC) to celebrities promoting cryptocurrencies.
Following the collapse of FTX, a class action lawsuit was filed against Tom Brady, his supermodel ex-wife Gisele Bündchen, Stephen Curry, and Shark Tank star Kevin O’Leary.
The lawsuit alleged that FTX customers sustained $11 billion in damages after the exchange halted withdrawals.
In October 2022, the SEC also filed a lawsuit against reality television star Kim Kardashian for promoting EthereumMax, a crypto a sset security.
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