Cristiano Ronaldo sued for promoting Binance

The class action plaintiffs, Michael Sizemore, Mikey Vongdara, and Gordon Lewis, are seeking damages and legal fees. According to the lawsuit, Ronaldo coordinated with Binance to promote, assist, and actively participate in the offering and sale of unregistered securities.

In 2022, Binance and Ronaldo will start a partnership to launch their own non-fungible token (NFT) collection

The plaintiffs said Ronaldo enticed and encouraged millions of fans to invest in unregistered securities of Binance. In addition, users who registered Ronaldo's NFTs could use Binance for other purposes, such as investing in Binance Coin (BNB) and other cryptocurrency-related programs.

Ronaldo has been instrumental in Binance’s rise to fame, thanks to his influence and hundreds of millions of social media followers. The lawsuit claims that Ronaldo caused a 500% increase in searches for Binance in the week following the initial sale. The plaintiffs allege that Ronaldo knew or should have known about Binance’s sale of unregistered crypto securities because he has investment experience and the resources to seek advice.

The US Securities and Exchange Commission (SEC) has warned celebrities about the need to disclose payments they receive from cryptocurrency promotions, something the complaint alleges Ronaldo failed to do.

On November 21, Binance founder Changpeng Zhao (CZ) resigned as CEO and pleaded guilty to violating anti-money laundering laws and operating an unregistered exchange. Binance had to pay $4.3 billion in compensation and agreed to be monitored by the US government for 5 years. The former CEO is currently facing 18 months in prison. The SEC also accused Binance of selling unregistered securities and is investigating whether Binance misappropriated customer funds.

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