A group of plaintiffs has filed a lawsuit against soccer star Cristiano Ronaldo, contending that they suffered losses due to the athlete’s promotion of the cryptocurrency exchange Binance. Cointelegraph reports.
According to court documents filed in the United States, Ronaldo “promoted, aided and/or actively participated in the offering and sale of unregistered securities in coordination with the trading platform.”
Binance entered into a longstanding partnership with the footballer in mid-2022 to issue a series non-fungible tokens. At least three of his collections are listed on the exchange.
The complaint asserts that users who signed up for Ronaldo’s NFTs are more likely to use the platform for other purposes.
“The promotions attracted or aided Binance in attracting investments in unregistered securities, encouraging millions of its followers, fans and supporters to invest in the platform,” the lawsuit states.
Moreover, the athlete may have been aware of Binance’s wrongdoing, given his “investment experience and vast resources to engage external consultants,” the prosecutors allege.
In the document, SEC recommendations about disclosing payments received for promoting cryptocurrencies were also cited, which Ronaldo did not do.
On November 21, in a deal with the U.S. Department of Justice Binance agreed to pay $4.3 billion, and its chief executive Changpeng Zhao to a $50 million penalty and step down as chief executive.
He posted a $175 million bond to remain free until the verdict was announced on February 23, 2024. Prosecutors sought a travel ban from the United States, fearing flight. The entrepreneur faces up to ten years in prison.
Judge barred Zhao from leaving the United States pending the DOJ’s motion.
Following his resignation as Binance’s chief executive, Richard Teng took the helm of the exchange.