Cristiano Ronaldo is facing a class action lawsuit exceeding $1 billion due to his promotion of an NFT collection associated with the controversial cryptocurrency exchange, Binance.
Ronaldo and Binance partnered last November to launch the CR7 NFT collection, where the football star encouraged potential investors on social media, stating, “we are going to change the NFT game and take football to the next level.”
According to the BBC, the lawsuit claims that Ronaldo’s endorsement misled plaintiffs into making unprofitable investments. The claimants allege that individuals were drawn to invest in what they describe as “unregistered securities,” including Binance’s BNB token.
The filing asserts that Ronaldo “promoted, assisted in, and/or actively participated in the offer and sale of unregistered securities in coordination with Binance.” It further claims that he should have been aware of the status of these crypto securities, considering his “investment experience and vast resources to obtain outside advisers.”
The lawsuit references SEC guidance, which outlines the requirements for celebrities when promoting cryptocurrency.
Recently, Ronaldo hinted at continued collaboration with Binance, teasing his hundreds of millions of social media followers with the message that he is “cooking something up” with the company:
Cooking something up with @binance https://t.co/FMAP5GAdxE
Additionally, Binance recently agreed to pay $4.3 billion to settle a long-standing investigation by the US Department of Justice. The exchange’s founder, Changpeng “CZ” Zhao, has also resigned as CEO and pleaded guilty to violating anti-money laundering laws.