Cristiano Ronaldo has been sued in the US for his promotion of Binance, the largest cryptocurrency exchange platform in the world.
The indictments border on his endorsement of the platform, as they claim that it has led them to make loss-making investments.
These individuals are requesting damages of “a sum above” $1 billion, which is about £790 million.
In November 2022, the cryptocurrency exchange platform announced its first “CR7” collection of non-fungible tokens (NFTs), and it was done in partnership with the footballer.
Cristiano Ronaldo expressed during the announcement that it was meant to reward fans “for all the years of support”.
NFTs are virtual assets that can be purchased and sold, but aren't physical in value, meaning they exist digitally.
It is understood that they are used to mark ownership of something, such as a picture or video online.
“CR7” as widely known refers to Cristiano Ronaldo 7, the name of the Portuguese star and his iconic jersey number.
The brand CR7 has huge global acclaim, and it is used as branding in a range of products, from footwear to fragrances, which has obviously seen Ronaldo grow to become one of the wealthiest athletes on earth.
In a social media video announcing the partnership, Cristiano Ronaldo indicated to those who intended to invest that the partnership is intended “to change the NFT game and take football to the next level”.
The cheapest NFT from the collection was valued at $77 when it went on sale in November 2022.
However, the plaintiff claimed that Cristiano Ronaldo's promotion of Binance resulted in a “500% increase in searches” for the crypto exchange, which is registered in the Cayman Islands.
These individuals also expressed that it resulted in people using the firm to invest in what they term “unregistered securities”, such as Binance's BNB cryptocurrency.
According to the US Securities and Exchanges Commission (SEC), these assets can be taken as securities, and as such celebrities endorsing these assets must abide by US law.
The Chairman of the SEC made it clear that Celebrities must “disclose to the public from whom and how much you are getting paid to promote investment in securities”
The plaintiffs claimed that Cristiano Ronaldo should have revealed how much he was being paid, but he didn't.
Ronaldo and Binance are still very much in a partnership, with the footballer and the Cryptocurrency platform recently sharing on social media that they are “cooking something up”.
This lawsuit was filed about a week following the US Justice Department informing the firm to pay $4.3 billion in penalties and forfeitures.
The Justice Department reportedly accused Binance of assisting users to find a way around sanctions globally.
They also claim that the platform has made it easy for criminals and terrorists to move money.
Binance chief executive, Changpeng Zhao, stepped down from the firm, having admitted being guilty of money laundry.
The indictments border on his endorsement of the platform, as they claim that it has led them to make loss-making investments.
These individuals are requesting damages of “a sum above” $1 billion, which is about £790 million.
In November 2022, the cryptocurrency exchange platform announced its first “CR7” collection of non-fungible tokens (NFTs), and it was done in partnership with the footballer.
Cristiano Ronaldo expressed during the announcement that it was meant to reward fans “for all the years of support”.
NFTs are virtual assets that can be purchased and sold, but aren't physical in value, meaning they exist digitally.
It is understood that they are used to mark ownership of something, such as a picture or video online.
“CR7” as widely known refers to Cristiano Ronaldo 7, the name of the Portuguese star and his iconic jersey number.
The brand CR7 has huge global acclaim, and it is used as branding in a range of products, from footwear to fragrances, which has obviously seen Ronaldo grow to become one of the wealthiest athletes on earth.
In a social media video announcing the partnership, Cristiano Ronaldo indicated to those who intended to invest that the partnership is intended “to change the NFT game and take football to the next level”.
The cheapest NFT from the collection was valued at $77 when it went on sale in November 2022.
However, the plaintiff claimed that Cristiano Ronaldo's promotion of Binance resulted in a “500% increase in searches” for the crypto exchange, which is registered in the Cayman Islands.
These individuals also expressed that it resulted in people using the firm to invest in what they term “unregistered securities”, such as Binance's BNB cryptocurrency.
According to the US Securities and Exchanges Commission (SEC), these assets can be taken as securities, and as such celebrities endorsing these assets must abide by US law.
The Chairman of the SEC made it clear that Celebrities must “disclose to the public from whom and how much you are getting paid to promote investment in securities”
The plaintiffs claimed that Cristiano Ronaldo should have revealed how much he was being paid, but he didn't.
Ronaldo and Binance are still very much in a partnership, with the footballer and the Cryptocurrency platform recently sharing on social media that they are “cooking something up”.
This lawsuit was filed about a week following the US Justice Department informing the firm to pay $4.3 billion in penalties and forfeitures.
The Justice Department reportedly accused Binance of assisting users to find a way around sanctions globally.
They also claim that the platform has made it easy for criminals and terrorists to move money.
Binance chief executive, Changpeng Zhao, stepped down from the firm, having admitted being guilty of money laundry.