Cristiano Ronaldo, one of the most successful and popular footballers of all time, is potentially facing a class action lawsuit regarding his endorsement of Binance , which is currently entangled in legal disputes. A filing in a Florida District Court alleges that Ronaldo engaged in the promotion, assistance, or active participation in the offering and sale of unregistered securities in collaboration with the crypto exchange. The plaintiffs claim that the endorsement of the platform resulted in massive financial losses. Ronaldo in hot water In 2022, Ronaldo collaborated with Binance to publicize his collection of non-fungible tokens (NFTs). Those opposing the endorsement argue that they were more inclined to utilize Binance and its services for other cryptocurrency related activities. The users assert that this led to investments in unregistered securities through Binance, including its BNB and cryptocurrency yield programs. The various promotions that Ronaldo did, as per the complaint, encouraged Binance to solicit investments in unregistered securities by urging his millions of followers to invest in the Binance platform. Given his extensive influence and fanbase, Ronaldo played a significant role in the growing user base of Binance. The lawsuit suggests that although Ronaldo did not directly promote Binance, he should have been aware of the potential consequences of his actions. The celebrity problem The United States Securities and Exchange Commission (SEC) has cautioned celebrities to disclose if they receive payment for endorsing cryptocurrencies and related assets. According to the lawsuit, Ronaldo failed to make such disclosures. Binance is currently facing legal challenges, with its founder Changpeng Zhao and the company under scrutiny by the Department of Justice. Following a $4.3 billion settlement for money laundering charges, Zhao has resigned as CEO and is potentially facing 18 months in prison. The elephant in the room however is the fact that celebrities such as Ronaldo and various others like Lionel Messi, Logan Paul, Jake Paul, Lindsey Lohan, and KSI, have millions of followers worldwide. All of these celebrities have endorsed crypto in one way or the other in the past, and in doing so have inadvertently caused substantial losses for their supporters.
