Cristiano Ronaldo accuses Binance of promoting unregistered securities
Pro-soccer star Cristiano Ronaldo has been hit with a class-action lawsuit filed by plaintiffs who say they suffered losses in promoting the now-legal mesh crypto exchange Binance.
The complaint filed Nov. 27 in Florida District Court alleges that Ronaldo “promoted, assisted and/or actively participated in the offering and sale of unregistered securities in coordination with Binance.”
Binance has entered into a multi-year partnership with Ronaldo in mid-2022 to launch a series of its own NFT tokens, at least three of which are tied to Binance.
The complaint is that users registered for Ronaldo's NFTs are more likely to use Binance for other purposes – including investing in unregistered securities, including Binance's BNB (BNB) and its crypto product programs.
“Ronaldo's promotions encouraged millions of his followers, fans and supporters to invest on the Binance platform, soliciting or assisting Binance to solicit investments in unregistered securities.”
Ronaldo was a key part of Binance's growing popularity, amassing 850 million followers on social media, according to the complaint. He says his NFT sales were “incredibly successful” in promoting the exchange, with searches for “Binance” increasing by 500% after the first sale.
Cooking something with @binance https://t.co/FMAP5GAdxE
— Cristiano Ronaldo (@Cristiano) November 28, 2023
The indictment alleges that Ronaldo knew or should have known about the “selling of unregistered crypto securities on Binance” because of his “investment experience and extensive resources to acquire outside advisors.”
Related: Why Binance's US Plea Agreement Could Be Positive for Crypto Adoption
The lawsuit cites Securities and Exchange Commission guidelines that warn celebrities against disclosing payments they receive to promote cryptocurrencies — something Ronaldo claims he didn't do.
The class defendants are Michael Sizemore, Mikey Vondara and Gordon Lewis, who are seeking damages and funds to cover legal fees.
Meanwhile, Binance and founder Changpeng “CZ” Zhao are facing legal trouble of their own, pleading guilty and paying $4.3 billion to the United States for running a money laundering and unregistered money transfer business.
Zhao has resigned as CEO and faces up to 18 months in prison. Binance agreed to up to five years of Department of Justice and Treasury compliance monitoring.
The SEC has filed claims that it is investigating Binance — among other allegations — that it sold unregistered securities and misused customer funds.
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