Cristiano Ronaldo is facing a class-action lawsuit in the United States over his promotion of Binance, the largest cryptocurrency exchange platform in the world. The plaintiffs claim that the presence of the footballer in the sponsorships led them to make investments that resulted in enormous financial losses.
Why Was Cristiano Ronaldo Sued?
Those affected are seeking compensation for a sum close to one billion dollars. In November 2022, Binance announced its first collection of NFTs called “CR7” in collaboration with Cristiano Ronaldo, which, according to the footballer, would reward fans for all their years of support. NFTs are virtual assets that can be bought and sold but do not have a physical form in the real world, that is, they only exist digitally. They are typically used to mark ownership of something, such as an image, video, or even a work of art.
CR7 refers to Ronaldo’s initials and shirt number and is used as a trademark on a wide variety of products, from footwear to fragrances, which have helped make him one of the richest athletes in the world. Binance was no exception. In a social media video announcing the collaboration, Cristiano Ronaldo told potential investors: “We are going to change the NFT game and take football to the next level.” Now, they are looking for explanations after the historic fall of cryptocurrencies and the crisis at Binance.
What Will Happen to Cristiano Ronaldo?
The cheapest NFT in the collection had a price close to 80 dollars (about 1,600 pesos) when it went on sale in November 2022, but a year later its price was approximately one dollar (20 pesos). The plaintiffs allege that Ronaldo’s promotion of Binance caused a “500% increase in searches” for the cryptocurrency. They also claim this led people to use the firm to invest in what they call “unregistered securities,” such as Binance’s BNB cryptocurrency.
According to the US Securities and Exchange Commission, these assets can be considered securities, and therefore celebrities who endorse them must comply with US law. The plaintiffs allege that Ronaldo should have revealed how much he was being compensated, but he failed to do so.
This story was written in Spanish by Miguel Fernandez in Cultura Colectiva News
