Ronaldo sued over cryptocurrency ads – E24

The soccer star was supposed to take “football to the next level.” Now he is being sued for more than ten billion kroner.

One of the best soccer players in history, Cristiano Ronaldo, is facing a class action lawsuit in the United States. He writes, among other things BBC.

The plaintiffs are seeking compensation in an amount that must be “greater than” one billion dollars.

This corresponds to just over NOK 10.6 billion at today’s exchange rate.

The background to the lawsuit is Ronaldo’s announcement of purchasing products on the world’s largest cryptocurrency exchange, Binance.

From 77 to one dollar

Last November, Cristiano Ronaldo and cryptocurrency exchange Binance, registered in the Cayman Islands, announced that they would sell… NFTsNFTsCard for non-fungible codes. It is a unique digital certificate that is stored on the blockchain. It doesn’t exist in the real world. Which symbolizes a football player.

The initiative was supposed to be one Thanks fans For their support throughout his career.

“With Binance, I am able to create something that not only embodies the passion of the game, but rewards fans for all the years of support,” Ronaldo said in a press release regarding the launch.

When NFTs went on sale in November 2022, the cheapest product was priced at $77. After a year, the price became only one dollar.

The BBC wrote that they tried to get a comment from Ronaldo through his management. The broadcaster did not receive it. They were also unsuccessful in obtaining a comment from Binance regarding the lawsuit.

– Central part

The collapse of NFTs’ prices is not the backdrop to the lawsuit. Prosecutors believe Ronaldo’s promotion of the cryptocurrency exchange made it more popular.

“Ronaldo has been a key part of Binance’s growing popularity due to his influence and reach, with 850 million followers across social media,” the lawsuit states. Cointelegraph.

Prosecutors also believe Ronaldo should have disclosed how much he was paid for promoting the cryptocurrency exchange – which he did not do.

The cryptocurrency exchange later ran into major problems with the US Financial Supervision Commission (SEC).

Risking imprisonment

The SEC had previously said that cryptocurrencies should be considered securities. Therefore, celebrities who promote this must follow American law.

– When celebrities endorse investment opportunities, including crypto securities, investors should be vigilant and check whether the investments are suitable for them. Investors should know why celebrities are making these recommendations, SEC Chairman Gary Gensler said earlier.

The SEC previously sued Binance in court and later won. Binance and its former CEO, Changpeng Zhao, owe the US government $4.3 billion for violating anti-money laundering laws and running an unregistered money transfer business.

Zhao has also resigned from his position as chairman of the stock exchange, and faces 18 months in prison. He admitted to money laundering charges.