NEW YORK — Cristiano Ronaldo, the renowned Portuguese soccer star, faces a class-action lawsuit. The lawsuit seeks a minimum of $1 billion in damages, alleging his involvement in promoting non-fungible tokens (NFTs) related to cryptocurrency. These NFTs were issued by the troubled cryptocurrency exchange known as Binance.
Cristiano Ronaldo is Currently Facing $1 billion
The lawsuit, filed on Monday inside the federal courtroom docket of the Southern District of Florida, alleges that Ronaldo’s endorsement of Binance turned misleading and unlawful.
The plaintiffs argue that Binance’s affiliation with outstanding figures like Ronaldo ended in luxurious and unstable investments. introduction pa
The lawsuit states that Binance’s fraud reached great stages by imparting and promoting unregistered securities with the help of wealthy, influential agencies and celebrities worldwide, including Defendant Ronaldo.
Ronaldo’s representatives declined to offer any feedback on Thursday.
The Associated Press asked for a declaration from Binance, the world’s biggest cryptocurrency exchange. However, there has been no on-the-spot response.
In November of last year, Ronaldo collaborated with Binance to release his first NFT collection, “CR7,” in anticipation of the 2022 World Cup.
This collection consisted of seven animated statues portraying Ronaldo in significant moments, including bicycle-kick goals and his upbringing in Portugal. The NFTs were available for purchase, with starting prices ranging from approximately $77 to $10,000.
The lawsuit filed on Monday asserts that Ronaldo’s affiliation with Binance resulted in highly successful promotional campaigns. It alleges a significant 500% surge in online searches for the keyword “Binance” following the announcement of the soccer star’s NFTs.
Furthermore, the suit claims that the premium-level NFTs in the collection were sold out within the first week.
Ronaldo has consistently endorsed Binance on his official website and social media channels. On X (previously referred to as Twitter), Ronaldo recently shared a Binance video and hinted at a collaboration with the crypto exchange on Tuesday.
NFTs are digital images that are given a unique version number and added to a cryptocurrency blockchain. This process categorizes them as collectibles intended to be one-of-a-kind. While NFTs experienced a brief surge in popularity, their value has significantly declined due to scandals and market downturns within the crypto industry.
During the summer, Binance faced allegations of functioning as an unregistered securities exchange and violating several U.S. securities laws, resulting in a lawsuit from regulators.
As part of a settlement last week, the crypto exchange agreed to pay a compensation of approximately $4 billion, and its founder Changpeng Zhao resigned as CEO and pleaded guilty to a felony charge related to the failure to prevent money laundering on the platform.
Celebrities being sued over crypto endorsements is not a new occurrence. In a class-action lawsuit last year, numerous Hollywood and sports stars, such as Larry David and Tom Brady, were included as defendants. This lawsuit was directed at FTX, the second-largest crypto exchange, which collapsed in November 2022.
The case argued that the celebrities’ involvement in promoting FTX’s unsuccessful business model made them responsible.
Cristiano Ronaldo, a globally renowned athlete, is easily identifiable and one of the wealthiest individuals in the sports industry.
He has showcased his talent as the leader of Portugal’s national team. He has represented various prominent clubs, including Real Madrid in Spain, Juventus in Italy, and Manchester United in England.