Soccer star Cristiano Ronaldo is entangled in a class-action lawsuit in the United States amounting to over $1 billion, involving his association with Binance. Plaintiffs have asserted that Ronaldo endorsed the crypto exchange, leading them to incur financial losses.
According to a report by the BBC, the lawsuit states that Ronaldo's promotional activities influenced individuals to engage in investments that eventually turned out to be unprofitable. The plaintiffs in this matter are seeking compensation surpassing $1 billion.
The "CR7" NFT Collaboration
Ronaldo's collaboration with Binance gained attention in November 2022 when the exchange unveiled its inaugural "CR7" collection of non-fungible tokens (NFTs). This partnership aimed to reward Ronaldo's fans for their unwavering support, using NFTs, which are digital assets representing ownership of online content.
The venture was marketed as a game-changer in the NFT space. Ronaldo expressed intentions to revolutionize football through this collaboration. However, the latest legal dispute has raised questions about the responsibilities associated with celebrity endorsements in the fast-growing cryptocurrency landscape.
Myself and #Binance are giving away 50,000 free surprises!And one lucky winner will win the golden ticket - a trip to train with me in person.Head over to #Binance to claim your free CR7 ForeverZone BoxGet involvedhttps://t.co/1cl21YjQeJ pic.twitter.com/DVlzWhbEMH
— Cristiano Ronaldo (@Cristiano) October 11, 2023
Meanwhile, the Former CEO of Binance, Changpeng Zhao (CZ), is facing a monumental legal battle against the US Department of Justice (DoJ) after admitting guilt in violating anti-money laundering laws. Earlier, the DoJ requested that CZ's travel to the UAE be restricted, and the federal court granted the request.
Binance and CZ under Fire
While the DoJ did not push for immediate incarceration, they opposed CZ's departure from the US, citing concerns about a potential flight risk. CZ is facing a possible sentence ranging between 18 months to 10 years. He has resigned as Binance's CEO in a settlement with the DoJ, which includes a bond agreement of $175 million.
Simultaneously, Binance faces substantial penaltiestotaling $4.3 billion after pleading guilty to various charges. The settlement between the exchange and the DoJ includes a deal to exit the US market and has since appointed Richard Teng as the new CEO. The aftermath of the legal tussle has witnessed a significant outflow of Bitcoin reserves from Binance.
The crypto exchange is facing regulatory scrutiny for various violations involving the Bank Secrecy Act and anti-money laundering regulations.
This article was written by Jared Kirui at www.financemagnates.com.
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