Global football icon Cristiano Ronaldo is now at the center of a legal storm as he faces a class-action lawsuit over his endorsement of Binance’s NFT offerings. The lawsuit, filed in a Florida federal court on November 27, alleges that Ronaldo actively participated in the sale of unregistered securities linked to the popular cryptocurrency exchange Binance.
The legal action not only targets Ronaldo but also accuses Binance and its CEO, Changpeng Zhao (CZ), of violating securities laws by selling unregistered securities. The Securities and Exchange Commission (SEC) has also taken legal steps against the exchange, intensifying the scrutiny on the entire affair.
The lawsuit contends that Ronaldo, given his substantial resources and investment knowledge, should have been aware of the potential legal implications of endorsing offerings that allegedly breach securities regulations. The legal proceedings raise questions about the responsibility of celebrities when promoting financial products and the obligations they have in ensuring compliance with the law.
Broader Implications for Binance
This legal challenge is part of a broader series of legal consequences faced by Binance and its CEO. The SEC’s lawsuit against the exchange further underscores the regulatory challenges that prominent players in the cryptocurrency space are encountering.
As the legal battle unfolds, it brings to light the increasing regulatory scrutiny in the crypto industry and the potential impact on celebrities who engage in endorsing related products.