Cristiano Ronaldo Faces Class-Action Lawsuit Over Promotion of Binance’s Alleged Unregistered Securities

Cristiano Ronaldo is facing a proposed class-action lawsuit due to his promotion of the crypto exchange Binance. The lawsuit, filed on November 27 in a U.S. district court in Florida, accuses Ronaldo of promoting, assisting, and/or actively participating in the offer and sale of unregistered securities in coordination with Binance​.

Ronaldo’s involvement with Binance began in mid-2022, when they formed a multiyear partnership to promote a series of his own nonfungible tokens (NFTs), several of which were linked to Binance. The complaint alleges that users who purchased Ronaldo’s NFTs were more likely to use Binance for other investments, including what the plaintiffs consider unregistered securities like Binance’s BNB and its crypto yield programs​.

The lawsuit emphasizes Ronaldo’s significant influence and reach, with over 850 million social media followers, asserting that his promotions significantly boosted Binance’s popularity. His NFT sales reportedly led to a 500% increase in searches for Binance following the initial sale. The suit further alleges that Ronaldo, given his investment experience and access to advisors, should have been aware of Binance’s activities involving unregistered crypto securities​.

The U.S. Securities and Exchange Commission (SEC) has guidelines warning celebrities about the need to disclose payments for promoting cryptocurrencies, a requirement the complaint claims Ronaldo did not meet. The plaintiffs in the case, Michael Sizemore, Mikey Vongdara, and Gordon Lewis, are seeking damages and funds to cover legal fees​.

In a related situation, Binance and its founder, Changpeng “CZ” Zhao, are dealing with legal issues of their own. They have pleaded guilty and agreed to a $4.3 billion settlement with the U.S. government for violations of Anti-Money Laundering laws and operating an unregistered money-transmitting business. Zhao has resigned as CEO and could face up to 18 months in prison. Binance is also under a five-year compliance monitoring agreement with the U.S. Department of Justice and the Department of the Treasury​​. Furthermore, the SEC has sued Binance, alleging that it sold unregistered securities and is investigating potential misappropriation of customer funds​​.