Soccer player Ronaldo is facing a class-action lawsuit due to his involvement with Binance. The partnership included a series of promotional activities beginning in November 2022, with Ronaldo appearing in Binance adverts and launching a collection of non-fungible tokens (NFTs).
Three plaintiffs are seeking damages of “a sum exceeding” $1 billion, saying they suffered losses due to the adverts. “Given Mr. Ronaldo’s investment experience and vast resources to obtain outside advisors, he knew or should have known of potential concerns about Binance selling unregistered crypto securities and/or that he was aiding and abetting Binance’s fraud and/or conversion,” the complaint said.
Binance was forced to pay over $4 billion in penalties and restitution after settling with the US federal government on November 21. Binance CEO Changpeng Zhao also stepped down after pleading guilty to money laundering.
Ronaldo NFTs
Despite the lawsuit, this month Ronaldo launched his third NFT collection with Binance, entitled “CR7 ForeverZone.” The collection featured a series of NFTs depicting Ronaldo’s iconic moments throughout his career.
His latest post on X showed him recording a new advert, and was captioned “Cooking something up with @Binance”.
“It is crucial to recognise that blaming Ronaldo alone oversimplifies a complex issue. Instead, attention should also be directed towards global regulators who have been slow to establish clear guidelines for this evolving financial landscape,” said Nigel Green, CEO, deVere Group.
“The cryptocurrency market operates in a decentralized and often cross-border manner, presenting unique challenges for regulators. However, the absence of a unified and clear regulatory framework has created a regulatory void that allows both legitimate and questionable activities to persist.
“In traditional markets, celebrities often endorse various investment platforms without facing legal repercussions, as long as they adhere to existing regulations. The crypto market should be no exception, and the responsibility for setting clear guidelines lies with regulatory bodies,” he added.
Many high profile celebrities have crypto coins and NFTs, with some facing fines. The list includes:
- Snoop Dogg – American rapper and actor, has been a vocal advocate for Bitcoin, and he even performed at a Bitcoin event in 2013.
- Paris Hilton – American socialite and businesswoman, has endorsed several ICOs (Initial Coin Offerings) and has been involved in cryptocurrency projects.
- Floyd Mayweather – former professional boxer, has promoted several ICOs on his social media accounts and has been involved in a number of cryptocurrency-related projects.
- Mike Tyson – former professional boxer, has been involved in the launch of his own cryptocurrency, called the “Mike Tyson Bitcoin,” and has also endorsed several other cryptocurrency projects.
- Ashton Kutcher and Mila Kunis – American actors and entrepreneurs, fined $1m by SEC for NFT-funded Stoner Cats.
- Matt Damon – American actor, starred in a widely publicized advert for crypto.com in 2021.
- Tom Brady and Gisele – sports star and model, lost millions of dollars after endorsing now collapsed exchange FTX.
- Elon Musk – CEO of Tesla and SpaceX, and one of the world’s wealthiest people, has been an outspoken supporter of cryptocurrency, particularly Bitcoin and Dogecoin.
- Kim Kardashian – socialite, agreed to pay fine of $1.26m in October 2022 for promoting EMAX token.
- Paul Pierce – NBA player, fined $1.4m in February 2023 for his involvement in promoting EMAX.
“This case is yet another reminder to celebrities: The law requires you to disclose to the public from whom and how much you are getting paid to promote investment in securities, and you can’t lie to investors when you tout a security,” said SEC Chair Gary Gensler following the Pierce case in February.
“When celebrities endorse investment opportunities, including crypto asset securities, investors should be careful to research if the investments are right for them, and they should know why celebrities are making those endorsements.”
