Introduction:
Cristiano Ronaldo, global soccer icon and one of the wealthiest athletes, is embroiled in a class-action lawsuit seeking a staggering $1 billion in damages.
The legal action stems from Ronaldo’s involvement in promoting ‘non-fungible tokens’ (NFTs) linked to the troubled cryptocurrency exchange, Binance.
Ronaldo’s NFT Venture:
In November of the previous year, Ronaldo introduced his inaugural NFT collection, named ‘CR7,’ in collaboration with Binance.
The collection featured animated statues capturing iconic moments from Ronaldo’s life, ranging from bicycle-kick goals to his childhood in Portugal. The NFTs, with initial prices between $77 and $10,000, garnered immense attention but later faced a drastic drop in value.
Deceptive Allegations:
The lawsuit, filed in the federal court of the Southern District of Florida, contends that Ronaldo’s promotion of Binance was not only deceptive but also unlawful.
The plaintiffs argue that Binance’s association with high-profile figures like Ronaldo led unsuspecting investors into costly and unsafe investments, alleging the offer and sale of unregistered securities.
Financial Impact:
The legal document claims that Ronaldo’s promotional efforts resulted in a substantial increase in online searches for ‘Binance,’ indicating the success of the partnership. Premium-level NFTs from the collection reportedly sold out within the first week, further amplifying the impact of Ronaldo’s endorsement.
Disclosure Dilemma:
The lawsuit also asserts that Ronaldo should have disclosed the financial details of his partnership with Binance, citing the U.S.
Securities and Exchange Commission’s requirement for celebrities to publicly disclose compensation for promoting securities, including cryptocurrency assets.
NFT Industry Fallout:
NFTs, once a booming trend, have faced a decline in value amid controversies and market uncertainties within the cryptocurrency industry. Binance, previously accused of operating as an unregistered securities exchange, recently settled a $4 billion lawsuit, prompting its founder to step down.
Celebrity Crypto Litigation:
This lawsuit against Ronaldo mirrors a trend where celebrities face legal repercussions for their involvement in crypto promotions. Notably, celebrities like Larry David and Tom Brady faced a class-action suit in connection with the collapse of the FTX crypto exchange in 2022.
Ronaldo’s Continued Affiliation:
Despite the legal challenges, Ronaldo continues to promote Binance on various platforms, including social media. The article delves into the ongoing developments and the potential ramifications for Ronaldo and his association with the cryptocurrency exchange.
Conclusion:
As one of the most recognizable and affluent athletes globally, Cristiano Ronaldo finds himself in the midst of a billion-dollar legal battle, highlighting the complexities and controversies surrounding celebrity endorsements in the volatile world of cryptocurrency.
The lawsuit raises questions about accountability, disclosure, and the broader implications for high-profile figures engaging in the promotion of cryptocurrency assets.
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