Renowned Portuguese soccer star Cristiano Ronaldo is confronting a class-action lawsuit seeking a minimum of $1 billion in damages for his involvement in promoting non-fungible tokens (NFTs) issued by the troubled cryptocurrency exchange Binance to his vast fan base.
Filed in federal court in the Southern District of Florida on Monday, the lawsuit alleges that Ronaldo’s promotion of Binance was “deceptive and unlawful.” Plaintiffs claim that Binance’s association with high-profile figures like Ronaldo led them into financially detrimental and risky investments.
Under the marketing partnership, Ronaldo allegedly encouraged millions of fans unfamiliar with cryptocurrencies or the Binance platform to invest, creating an impression of safety. According to the lawsuit, fans who followed Ronaldo’s endorsements on Binance suffered financial losses after making investments.
The lawsuit states, “Evidence now reveals that Binance’s fraud was only able to reach such heights through the offer and sale of unregistered securities, with the willing help and assistance of some of the wealthiest, powerful and recognized organizations and celebrities across the globe — just like Defendant Ronaldo.”
Representatives for Ronaldo declined to comment, while Binance, the world’s largest cryptocurrency exchange, has not responded to requests for a statement.
Ronaldo joins a list of celebrities facing legal action over their involvement in the crypto world. Last year, NFL quarterback Tom Brady, supermodel Gisele Bundchen, and comedian Larry David were accused of defrauding investors in a similar context, related to the collapse of a cryptocurrency exchange.
Ronaldo initiated his first NFT “CR7” collection with Binance in November of the previous year, ahead of the 2022 World Cup. The NFTs featured animated statues of iconic moments in Ronaldo’s life, and the promotional efforts were reportedly successful, resulting in a 500% increase in online searches for “Binance” after the announcement.
The lawsuit also alleges that Ronaldo failed to disclose the compensation received from Binance for the partnership, a requirement outlined by the U.S. Securities and Exchange Commission.
NFTs, once experiencing a brief boom, have since declined in value amid scandals and market downturns in the crypto industry. Binance, accused of operating as an unregistered securities exchange, recently settled with regulators for approximately $4 billion, leading to its founder Changpeng Zhao stepping down as CEO and pleading guilty to a related felony.
Cristiano Ronaldo, one of the world’s wealthiest and most recognizable athletes, continues to promote Binance on his official platforms, recently hinting at collaboration through a posted video on X (formerly known as Twitter).
