Cristiano Ronaldo is currently facing a massive $1 billion lawsuit over his involvement with Binance, the leading global cryptocurrency exchange. The lawsuit, which was filed in a US district court in Florida, alleges that Ronaldo played a role in promoting and selling unregistered securities in collaboration with Binance.
The plaintiffs argue that Ronaldo’s endorsement misled them into making investments that resulted in losses. They are seeking damages in excess of $1 billion (Rs 8331 crore).
In November 2022, Binance introduced its first collection of non-fungible tokens (NFTs) called “CR7” in partnership with Ronaldo. The football star stated that these NFTs would be a way to reward his fans for their support over the years. NFTs are virtual assets that can be bought and sold but do not physically exist. They are typically used to establish ownership of digital content such as pictures or videos.
The term “CR7” refers to Ronaldo’s initials and shirt number, and it is utilized as branding for various products, including footwear and fragrances. This branding has contributed to Ronaldo’s status as one of the wealthiest athletes globally.
The claimants in the lawsuit argue that Ronaldo’s promotion of Binance resulted in a significant increase in searches for the cryptocurrency exchange, reaching a 500% surge. They also claim that it led people to invest in what they deem to be “unregistered securities,” such as Binance’s BNB cryptocurrency.
According to the US Securities and Exchange Commission (SEC), assets like these can be classified as securities, meaning that celebrities endorsing them must comply with US laws.
The outcome of this lawsuit is still pending, and further developments are awaited.
