Cristiano Ronaldo Faces $1Bn Lawsuit Over Binance Ads

Football star Cristiano Ronaldo is facing a class action lawsuit in the US over his promotion of Binance, the world’s largest cryptocurrency exchange. The plaintiffs claim that Ronaldo’s endorsement of Binance led them to make loss-making investments and are seeking damages exceeding $1 billion (£790 million).

In November 2022, Binance announced its first “CR7” collection of non-fungible tokens (NFTs) in partnership with Ronaldo. NFTs are virtual assets that can be bought and sold but have no real-world form. Ronaldo’s initials and shirt number, “CR7,” are used as branding in various products, making him one of the wealthiest athletes globally.

The claimants allege that Ronaldo’s promotion of Binance resulted in a “500% increase in searches” for the crypto exchange, leading people to invest in what they call “unregistered securities,” such as Binance’s BNB cryptocurrency. According to the US Securities and Exchange Commission (SEC), these assets can be considered securities, requiring celebrities to follow US law when endorsing them.

The plaintiffs further claim that Ronaldo should have disclosed how much he was being paid for the endorsement, as mandated by SEC guidelines. SEC Chair Gary Gensler emphasized the need for celebrities to disclose such information when endorsing investment opportunities, including crypto-asset securities.

Nigel Green, boss of consultancy firm DeVere Group, pointed out that blaming Ronaldo alone oversimplifies a complex issue. He suggested that attention should also be directed towards global regulators who have been slow to establish clear guidelines for this evolving financial landscape.

Despite the legal challenges, Ronaldo and Binance seem to have plans to collaborate again in the future, as indicated by a recent social media post from the footballer. However, neither Ronaldo nor Binance has responded to requests for comment from the BBC.

Send Us A Press Statement Advertise With Us Contact Us

 And For More Nigerian News Visit GWG.NG